What is the best way to put my parents' home under my name?

Asked in Lafayette, LA · January 19, 2017
They would continue to pay the mortgage. Can I do a cash sale and they continue to pay the note? When should the existing mortgage company be notified?

Advisor answers

I'm unsure if I understand your question or your intentions. However, let me explain the process and that may shed some light on your situation. When you contact the closing attorney to prepare for the transfer of the property, the attorney will conduct a title search. This search will reveal that your parents have an existing mortgage. The attorney is then legally obligated to pay-off all existing liens prior to the transfer of the deed. This ensures that the buyer is receiving a clean title although the process may vary from st...

I only just noticed this question. You may not want to put it in your name. Assuming your parents will be leaving this home to you when you pass away, you will get what's called a step up in basis. What that means is that the market value of the house when the second of them pass away will be your cost basis. If you transfer it before they die, you will inherit their cost basis which will make your tax on any sale in future higher than it would otherwise be.

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