Legal Question in Consumer Law in Maryland

How to secure my single male child's new home purchas which was by conventional loan through Navy Federal. He asked to have mothers name added to the deed; however in Bowie MD in PG county there is a hugh county tax associated with this addition to the Deed between Son nd Mother. After a review of the settlement papers there was no provision made to even allow for a benificary. He is not planning to marry anytime soon is only 25 years old and a first time home owner. As his parant I would like to know how to handle this if he should loose his employment or gets sick. Is a will the best way to go at this time. Or will deed addition allow for more leverage in the event something happens?

Asked on 10/18/13, 11:46 am

1 Answer from Attorneys

Cedulie Laumann Arden Law Firm, LLC

If done properly adding a child or parent to the deed without money changing hands between the two should be exempt from transfer / recordation tax. There may be other taxes associated with the purchase and/or loan.

It is not clear what you mean by a "beneficiary." Title to real estate is controlled by deed. There is no "beneficiary" designation on a deed. If someone gets sick, they still own their property and are still obligated to pay the mortgage. It is possible for a homeowner to give another person Power of Attorney to manage real estate if the homeowner later becomes ill, but the person acting under the Power of Attorney must manage the property for the owner's interests, not their own. A parent can always offer financial help if their child loses a job, gets sick or what have you.

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Answered on 11/14/13, 5:58 am

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