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Changing to Son's Name |
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just paid off my mortgage. would like to change the name on the deed from our name to our sons name. how/where do i go about doing that |
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You have a lawyer draw up a new deed, naming your son as the owner. You sign it, have your signatures notarized, and have the deed entered in the county's records. That part is easy.
But first you discuss all the consequences with your lawyer. If you ever want to sell, for instance, you sale won't qualify for the homesellers tax exclusion (unless your son happens to live in the house). He will owe capital gains tax on the profit, which is calculated from your cost basis.
If you ever wanted to take out a reverse mortgage you couldn't. Your son, though, could mortgage the property any time he wanted to. If he ever had the bad luck to have a judgment placed against him, it would be a lien on your house. If he ever got divorced, your property might be mixed up in the settlement. IF he died leaving everything to his wife, your home would be in her hands, or might some day eveb end up owned by her next husband.
Those are just a few of the problems I can see. Every person's situation is different, and there may be good reasons for doing what you propose. But first talk it all over with a lawyer who specializes in estate planning.
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Edith
Originally published on July 24, 2008 |
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