Should you add your childs name to the deed to your home?
Ellen: I'm calling in because my mom is 82 years old. She's got a house and she's got it in a will to me. I had a quick claim fee already for me to get ready to sign over to me but I'm concerned because I don't want to pay taxes on it and she owes bad taxes on it like one year, plus what I'm actually afraid of is her going to a nursing home and the nursing home taking her house.
Attorney Holley Knapik: Ellen, do you live there with your mom?
Ellen: No.
Holley: All right. Ellen, first, let's cover some things here. First of all, here in the State of Florida, the home you live in, your mom's homestead is absolutely protected from nursing homes and Medicaid. Don't be concerned about that. Number two, you talked about taxes. I was talking about capital gains taxes a few minutes ago. You seem to be talking about real estate taxes, but Ellen, for capital gains taxes, it would be important that you get to step up basis, and therefore, your mom should not put your name on the deed to your home. Please, do not do that.
Ellen, what you need to be concerned about is this, is that your mom leaves her home to you by her will but that's going to go through probate when she passes away. What you need to be concerned about is how are we going to avoid probate on mom's home so that when she passes away, her home will automatically go to me. No headaches, no households, no probate. Ellen, we've got the perfect tool for that. It's called a Lady Bird Deed.
It's a deed that we would prepare. State that as long as your mom is alive, it is her home to do with what she pleases, but upon her death, it will automatically go to you. No headaches, no hassle, no probate. Ellen, please don't try and do this by yourself. I can see you're on the wrong path. I suggest you get some legal advice. We'll be pleased to assist you at the Olsen Law Group Ellen.
[00:02:04] [END OF AUDIO]