Legal Question in Real Estate Law in California

Re: Grant Deed Question

If you have the deed to the house, the odds of her getting it back are very slim. Since it is stressful to have her living there, you might look at having her moved elsewhere.

Re: Grant Deed Question

Without any other written evidence to the contrary, she made a gift to you which she can't take back. I would still try to work something out with her, perhaps with a mediator, so she doesn't try to claim some type of elder abuse. Still, she made the gift, so she can't try to take it back now.

Regarding taxes, a gift tax return (form 709) should have been filed, but even if it's filed late, there is no tax owed if the gift value is under the lifetime estate/gift tax exemption, which used to be $600,000 and is now $1,000,000.

Re: Grant Deed Question

Make sure the grant deed is recorded. Remember that the house was a gift in excess of $10,000.00 during the ladies life time. $10,00.00 to you and $10,000.00 to your husband is tax free. So you owe a sizable tax obligation of 1/3 to 1/2 of the value of the home at the time of the gift. When you get past that you'll not have any money to pay a stipend to the mother-in-law each month. And she'll not have any money to fund a law suit (pay attorneys exorbitant fees) to recover her home. Oh yes! that's the good news. Since you probably didn't declare the gift and pay the taxes the year it was gifted. You'll be paying penalties and interest, which is the bad news. You need to seek some advise on your potential tax obligation, and see if there is a way to unwind your tax problem. The mother-in-law probably needs to go into an old folks home. Of course you could give the mother-in-law and house to the government. Lots of luck. I'll be praying for you.

Re: Grant Deed Question

Until she files a lawsuit against you, I would not worry about your claim to the house. Your defense could be the statute of limitations and estoppel since you relied upon this gift to pay off the house. If you have any questions or are sued, please contact me.

Re: Grant Deed Question

There may not be a gift tax issue if it is shown that the reason for deeding the house to you was that you were going to make repairs and care for her during her lifetime. There could be a tax issue, and youshould get some legal advice. It may or may not be large depending oh=n the value of the house, any loans against it before, and what consideration was given.

While it is probably not as bad as the other answer indicated, you should get some advice.