my dad wants to add my name to the deed w/o the selling portion of a regular quit claim deed. he still has a mortgage on the house we live in. can he have a living trust on his house executed if he still has a lien on it? what do we do to make sure the house goes to me in the event of his demise,he is 82 years old.
thank you very much
2 Answers from Attorneys
The best option may be for your father to use a beneficiary deed authorized under Michigan Land Title Standards 9.3 (also known as a Ladybird Deed). Such a deed would be less costly than establishing a trust. If a trust could be beneficial for other reasons, then the existing lien would not prohibit the transfer of ownership of the house into trust.
There are other gift tax implications if you get on deed today while he is alive. There will be income tax implications when you sell the property after he dies. A good way is to have lady bird deed - which will give him life estate for his life and transfers proeprty to you upon his death. Consult a lawyer for sure.