My dad died a few years ago and left the home to my mom, who is now in the late/final stages of Alzheimer’s and will probably pass away soon. My sister and I paid off the remaining mortgage balance with my dad’s insurance money. My sister and husband moved in a year ago to help take care of my mom. They want to keep the house after my mom dies but they want it in their name now (before she dies). Since my sister and I will inherit the house equally AFTER our mom dies and she would have to buy my share out to keep it, what are our options for BEFORE she dies? I have power of attorney over all of my mom’s affairs, with my sister being the alternate. Should she transfer the deed to her and her husband’s name and then take out a loan to pay me for my share? We would like to avoid probate after my mom passes away, but we would also like to avoid any kinds of huge taxes on either of us.
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Buying property from dying parent?
- Thread Starter Jane71
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fredrikklaw
Moderator
Conveyance inter vivos!
In order to help you and your sister avoid the hassles of a long and entailed probate when she passes away, your mother can do what is called a Conveyance Inter Vivos; this is a way by which a grantor can legally convey by deed or will an existing future interest to his or her heirs while still alive; hence inter vivos. You and your sister are currently said to be the bona fide holders of an (existing) future interest in the house, meaning that title and interest in the property will pass to you both by deed on the grantors' passing.
To avoid any possible complications and delays, it is best that the conveyance be to you and your sister and not to your sister and her husband. Once the conveyance is completed, you and your sister will become joint tenants of the property and she can then buy you out of your share of the title.
Also, whether the conveyance be inter vivos (now) or on her passing, you and your sister will not be incurring any Property Transfer Taxes; and to be absolutely sure of this, you can always look up Property Transfer Tax Exemptions section in your state's Revenue and Taxation Code.
Hope it goes well!
fredrikklaw
In order to help you and your sister avoid the hassles of a long and entailed probate when she passes away, your mother can do what is called a Conveyance Inter Vivos; this is a way by which a grantor can legally convey by deed or will an existing future interest to his or her heirs while still alive; hence inter vivos. You and your sister are currently said to be the bona fide holders of an (existing) future interest in the house, meaning that title and interest in the property will pass to you both by deed on the grantors' passing.
To avoid any possible complications and delays, it is best that the conveyance be to you and your sister and not to your sister and her husband. Once the conveyance is completed, you and your sister will become joint tenants of the property and she can then buy you out of your share of the title.
Also, whether the conveyance be inter vivos (now) or on her passing, you and your sister will not be incurring any Property Transfer Taxes; and to be absolutely sure of this, you can always look up Property Transfer Tax Exemptions section in your state's Revenue and Taxation Code.
Hope it goes well!
fredrikklaw
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