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hamiltonave561 · Feb 10, 2014, 02:35 PM

My husband passed away 5 yrs ago. The original deed on my house was in both our names. A year after he passed, I decided to change the title so that when I die my children will be able to get the house. I went to the city records and filled out all the necessary paperwork.

I was able to changed the title and put my 4 children's name and my name included, and eliminated my husbands name on the title. Now some of my relatives told me that my children will have problem acquiring the house and will be paying high taxes if they decide to sell it.

Could you give me an advice what I need to do? I am a 67 years old woman and I want to make sure that my children will be able to get the house when I die. Please let me know what I need to do.

ma0641 · Feb 10, 2014, 02:59 PM

Don't post your email, all answers will be here. The problem is all the children will have to agree. What does your will stipulate? Who is your executor? In essence, 3 would have to sell to one if that person wants to acquire. Taxes will have to be paid regardless. Each person would get the house @25% and then a fair market value should be established by the executor. When sold, each would pay taxes on their portion only, based on capital or short term gain.

smoothy · Feb 10, 2014, 03:03 PM

You don't unless you pay them equal shares because they now own it just as much as you do, As was told to you... they will have huge capital gains owed any way around it now... which they wouldn't have if they inherited it at the steped up value.

YOu could have given it to them in your will and saved all the expense and trouble. Whoever gave you the advice to add their names on the deed... stop listening to anyting they have to say. Because that was the worst advice you might have ever received.

joypulv · Feb 10, 2014, 03:08 PM

Agreed - you never should have done it. Far, far better to have just written a will.
Now you need them to agree to undo it, which they have a legal right to refuse.
I don't see an enormous problem leaving it as is, as long as they all get along with you and with each other.
Maybe it would be best to not even mention it.
And do write that will anyway!

smearcase · Feb 10, 2014, 03:32 PM

"I don't see an enormous problem leaving it as is, as long as they all get along with you and with each other." as joy said

and I would add so long as one or more of them doesn't survive you, and you come to find out that the DIL or SIL you never cared for much, owns a share of your house.
Or your house ends up with some type of lien because one of the children gets involved in a lawsuit.

The elder care attorneys I have listened to and read agree with smoothy's statement- Don't ever put children's names on house or bank accounts.

ScottGem · Feb 10, 2014, 04:25 PM

Did you do it as joint tenants with right of survivorship or as tenants in common? Did you pay transfer taxes? Did you pay gift taxes since you gifted them their shares?

But since they are now co-owners of the house, they can actually sell it from under you. They own 80% you only own 20% so they could sue to partition and sell it. Will they sign it back over to you? That could cause tax issues for them.

You really should consult an estate planner about the way to do this right.