Legal Question in Real Estate Law in Maryland

My parents added me to the deed of their house so I would get it should something happen to them. They have a first mortgage in their names only. Question 1, I want to buy the house, basically get a mortgage to pay off their first and have the house in my name only. Is that done like a normal sale since I'm already on the deed, or differently because I'm already on the deed? Question 2, I'm hearing that there should have been gift taxes paid with them adding me to the deed, is that correct?


Asked on 1/12/12, 10:53 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Your purchase of the house will be done like a normal sale. The only difference will be that you will sign the deed along with your parents conveying the property to you individually. You will need a settlement attorney like myself to conduct this settlement and comply with all of your lender requirements. As for the gift taxes on your previous transfer, since your parents have a lifetime estate and gift tax credit of a lot more than the value of the share of the house that they transferred to you, there would have been no tax. But it's possible they should have filed a gift tax return, depending on their individual tax situation. They should consult their tax preparer about this.

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Answered on 1/12/12, 12:47 pm


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