Legal Question in Real Estate Law in California

Re: deed

Whoa! Can we back up a bit here? I'm not an authority on every kind of insurance, but right now I can't think of any reason why an insurance company would say you "need to" add your son (or anyone) to title to your house. There may be a few situations where this is appropriate, but I can't think of one offhand. I can, however, think of several very good reasons NOT to add anyone to title. Don't do it unless you have a second opinion from a disinterested outsider such as an attorney working for you, preferably one with a working knowledge of estate planning, trusts, insurance and taxes.

Re: deed

I'll have to agree with Mr. Whipple on this one. Why in the world is an insurance company asking you to add your son to title?

Very truly yours,

Re: deed

Mr. Whipple gives you a great answer.

To whom did you file a quit claim deed and why?

In case you are not familiar with the effects of acting your son to title, it can have two major bad consequences. Assuming that he is your sole heir and he does not plan to live in your house when you die, the basis for IRS purposes upon your death is stepped up to its fair market value on the date of your death. So shortly after your death, he could sell the property without paying any capital gains taxes. But if you now deed him any part, that portion does not get a stepped up basis and is subject to capital gains tax. Also, even though you may have a very good relationship now with your son, it could always change [he marries a woman who does not like you or wants more economic security so will not give up control of the house]. Most people in the field tell their clients not to give an interest in their home to any of their children.