Legal Question in Real Estate Law in District of Columbia

Re: Attorney required for transfer of property?

Is an attorney reqiuired? No. Would it be smart? Yes.

The cost of an attorney preparing a deed for such a transfer would be minimal - probably under $100. The peace of mind of knowing that it was done right and that there can be no question about the validity of the transfer when your husband wants to sell is worth that.

Further, you and your mother-in-law should consider the tax aspects of such a gift, of which there are several. The house certainly exceeds the annual gift tax exclusion, so there may be a gift tax liability on Mom. Further, when property is inherited, the basis (from which capital gains tax is calculated) is determined as of the value at the time of inheritance. With a gift, the recipient takes it subject to the probably much lower basis of the person giving the gift (and thus is liable for more capital gains tax upon sale). These issues should be discussed with an attorney, or possibly an accountant, before doing this transaction.