Legal Question in Real Estate Law in Maryland

Re: Legal advise about putting elderly parents house into their childs name

If your parents are both mentally competent, they can deed the property over to you. Or if they have already given you a durable power of attorney, you can sign a deed on their behalf.

If you take outright title to the property now it is considered a gift and you will be subject to gift tax. More importantly, your basis for tax purposes in the property will be that of your parents. In other words, if they bought the property 30 years ago for $50000, that, plus the costs of any improvements, is your basis, so if you sell it for $300000, you will have a capital gain of $250000. The better way to do it for tax purposes is to deed a life estate to your parents and a remainder to yourself. Then when your parents die, your basis in the property will be its value as of date of death.

Consult an experienced real estate attorney for assistance in this matter.