Hello BH Community,
Our Situation
We bought our current home in 2017. At the time of purchase, my wife’s parents were added to the deed, so the deed was me, my wife, my mother in law and father law. The mortgage is under my name and wife’s name as borrowers. To my knowledge, my father and mother in law have never claimed any tax benefits as a result of the house, such as mortgage interest deduction, property tax deduction, etc. nor would they have a need to since they have never paid anything in relation to the house. They do not live with us, except for a few months after we bought in order for them to get situated as they were moving from the Bay Area. In hindsight, I regret not questioning the wisdom of allowing them on the deed, but what’s done is done.
Due to circumstances beyond our control and fear that their financial irresponsibility could affect my wife and I, they’ve agreed to come off the deed. A real estate attorney we spoke to recommends signing a new grant deed, where my mother and father in law grant / sign away their interest in the property to us.
I would really appreciated it if someone has knowledge in this matter and could provide some redirection/help and sanity check our likely course of action. I’d be interested in any potential tax consequences of this transaction, if any, that people could help with so what we are seeking out the appropriate resources. We live in CA.
Thanks!
Our Situation
We bought our current home in 2017. At the time of purchase, my wife’s parents were added to the deed, so the deed was me, my wife, my mother in law and father law. The mortgage is under my name and wife’s name as borrowers. To my knowledge, my father and mother in law have never claimed any tax benefits as a result of the house, such as mortgage interest deduction, property tax deduction, etc. nor would they have a need to since they have never paid anything in relation to the house. They do not live with us, except for a few months after we bought in order for them to get situated as they were moving from the Bay Area. In hindsight, I regret not questioning the wisdom of allowing them on the deed, but what’s done is done.
Due to circumstances beyond our control and fear that their financial irresponsibility could affect my wife and I, they’ve agreed to come off the deed. A real estate attorney we spoke to recommends signing a new grant deed, where my mother and father in law grant / sign away their interest in the property to us.
I would really appreciated it if someone has knowledge in this matter and could provide some redirection/help and sanity check our likely course of action. I’d be interested in any potential tax consequences of this transaction, if any, that people could help with so what we are seeking out the appropriate resources. We live in CA.
Thanks!
Statistics: Posted by Avogato — Thu Sep 19, 2024 2:14 pm — Replies 4 — Views 543