Quit Claim or Special Warranty to convey property to step-father

[mdawson]

Jurisdiction

Texas

My step-father has lived in a house I own for the past 10 years ( I do not reside there). He is of an age now where he can benefit from property tax reductions, and I would like for him to be able to take advantage of those deductions. I do not live in the home, so currently no deductions are available for the property taxes, which he pays. I would like to grant him the property title for him to be able to take the over 65 and homestead deductions, and then have him complete a Transfer On Death Deed, so that the property immediately remits to me on his death. My question is should we first file a quit claim deed (as it is really for superficial reasons, not 'true' ownership) or a special warranty deed? My step-father is 79, is still working, has savings, and would never attempt to sell the property, as I stated this would be for appearance sake only. We are trying to do this the simplest and least expensive way. Thanks in advance for your guidance!

 

[army judge]

My step-father has lived in a house I own for the past 10 years ( I do not reside there). He is of an age now where he can benefit from property tax reductions, and I would like for him to be able to take advantage of those deductions. I do not live in the home, so currently no deductions are available for the property taxes, which he pays. I would like to grant him the property title for him to be able to take the over 65 and homestead deductions, and then have him complete a Transfer On Death Deed, so that the property immediately remits to me on his death. My question is should we first file a quit claim deed (as it is really for superficial reasons, not 'true' ownership) or a special warranty deed? My step-father is 79, is still working, has savings, and would never attempt to sell the property, as I stated this would be for appearance sake only. We are trying to do this the simplest and least expensive way. Thanks in advance for your guidance!

Appearance sake is one thing, but what you're trying to achieve might be considered FRAUD by the WEALTH CONFISCATIRS, aka, taxing authorities.

Gifting him the home has financial ramifications far beyond any tax exemptions he might receive.

Plus, at 80 years old, why bother?

I suggest you and pops discuss creating a trust in dad's name, your wife's name, or what some call a "family trust"; which will revert to you upon his passing.

Realistically, even creating a trust might not prove to be a sound financial reason for dad immediately, however, it could prove beneficial to your family over the decades.

 

[adjusterjack]

would never attempt to sell the property,

No?

Sorry, but you have no idea what kind of things can happen to change that.

this would be for appearance sake only

No, it wouldn't. He would own the property and you would never have any say in what he does with it. At 79 he could still find a woman, get married, put her on the deed and cancel the TOD. Or he can cancel the TOD some day when he gets ticked off at you for some reason.

We are trying to do this the simplest and least expensive way.

Which is often the absolute worst way to do things when it comes to family matters.