Legal Question in Real Estate Law in Maryland

Upon his death, the person named as personal representative (executor) in his will, will open an estate. If the equity in the property is not needed to pay claims against the estate or expenses, the pr can deed the property over to you. Your taxable basis in the property will then be its market value at date of death. If he puts you on the deed now as a half owner, that is considered a gift and your basis in your half will be whatever his is (his purchase price + improvements, generally). So theoretically you might owe capital gains tax at some later time if you sell. There could also possibly be a gift tax depending on how wealthy he is. If you marry first there would be no gift tax, and if he then puts you on the deed as a married couple (known as tenancy by the entirety) you would automatically become full owner without having to go through probate. I suggest you consult with a knowledgeable tax attorney where you can present specific figures to get the best information.