Thread: Deed and Title Question

Hello I am a mortgage specialist in NJ.
I have a client whom I did a loan for last year. She is a single mother with 3 children. All of her children are about 20 years old, the oldest is 27. They all live in the home and its a 3 family home.

She told me that she would like to put herself and her 3 children on the deed of the house?

What are the benefits of putting everyone on the deed and title?
What are the disadvantages?

Tax advantages?
Tax disadvantages?

Thank you so much

Not sure about tax issues - contact an accountant- but my gut tells me she is trying to make sure her kids have something - a family trust may be a better option - she should talk to an estate attorney - or read up on this - the may be better options.

"[quote=pokermikey]Hello I am a mortgage specialist in NJ.
I have a client whom I did a loan for last year. She is a single mother with 3 children. All of her children are about 20 years old, the oldest is 27.

She told me that she would like to put herself and her 3 children on the deed of the house?"
END OF QUOTE

If I understand your question correctly, I believe the mother purchased this home last year and for which you played a role. I assume she is already on the deed and that she would like to add her three children to the deed.

I'd suggest a careful review of the mortgage documents. My review would be primarily centered upon any "due on sale" clause or an "exceleration" clause that may be trigged upon any changes to the property ownership.

Should your client proceed with adding her children to the deed, then I would suggest reviewing how to take title., i.e., tenants in common, tenants in partnership, with or without rights of survival ship, if one or more parties will hold a 'life estate', as well as ensuring all issues are in accordance to local laws and regulations. She may wish to research if establishing a "trust" will be to the benefit that expresses her wishes.

She may also wish to consult with legal counsel and an accountant to make sure everything is performed in a manner that expresses her wishes.

Good luck.