Parents Want to Give Me Their Home

My parents want to give me their home. What is the best way for them to do so? Can the transfer be done without taxes?

1 Answer

There are several options here, the best one depends on your personal situation. Is the property free and clear of any mortgages? If so what is owed, what type of loan is it? How old of a lien is it if there is one? From what I know from your question it is not possible to give you the correct answer; I recommend you seek the advice of an accountant for the best tax method for your family but some of the ways it can be done are as follows:

Quit claim deed, you can just be added to the property as a joint tenant and then you gain full ownership after they have passed on.

You can create a trust and be added to the trust as a beneficiary.

You can have it done as a purchase, this will create a tax event your account can give you the details.

If there is a loan, you can be quit claimed onto the property and make the payment for 12 months and then refinance it into your name but you need to be the one who is paying the mortgage not you give them the money and they pay. You may be able to find a lender who will go with 3 to 6 months but it is a difficult lending environment currently.

Consult a qualified real estate attorney in your area.