My mother wants to add me (her son) to the house deed. It was originally under her name and my grandmother's name but my grandmother has since passed. She wants to do this so that she can save $1000/yr on homestead tax and also on property taxes.
What I am wondering is what will this do to me as far as possible taxes go? I have been unemployed for the beginning of the tax year except for a seasonal stint I did that lasted about a month - earnings weren't much.
Also, my living situation is with my son, fiance and her daughter. The kids are on medicaid currently and I wonder if having me on the house deed will make them no longer eligible. My new job will be starting soon but as of right now that doesn't help as far as medical concerns go.
2 Answers from Attorneys
If you are receiving SSI and/or medicare, the asset (the house) will probably make you ineligibe for any type of government benefit.
My advice is based on the facts as you described them in your questions. If your mother wants to transfer a joint ownership with right of survivorship to you, for example, by quit claim deed, without consideration from you, she is making a gift to you of 1/2 ownership of the property. If the house is her residence and qualifies as her homestead, she can claim homestead benefits in Florida which are important. It is not clear how adding you to the deed would change her present ability to gain such benefits, including reduced taxes.
Regarding the effect of such transfer on your personal taxes or on the medicaid benefits of your children or family members, such transfer of ownership would not affect their benefits. However, depending on the value of the house, it may affect your ability to receive Medicaid benefits should you ever require them. Also, realize that in Florida and certain other states, parents or spouses who are the only name on a deed may transfer joint ownership ownership of real property so that in the event of their death, the property will automatically pass to the other owner without requiring probate of the decedent's estate.
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