Legal Question in Wills and Trusts in Maryland

Re: transfering house titel to the children

You do not indicate whether you desire to pass the title of the home during your life or after the death of you or your husband. This has alot to do with your options.

If you desire to pass title after the death of one or both of the owners (i.e., the parents) then a will with the granting of a life estate may be an option. Medicaid planning comes into the picture based upon the financial position of the parents.

An alternate arrangement would be to pass title of the house to a trust and various alternatives are available under this option. Trusts often have costs that make this option less attractive.

Depending on the respective financial ability of the children, an arm's length sale at "reasonable" value may be an option. This option could include the granting of a life tenancy in the dwelling and this would be part of the consideration of the sale.

The real issue that you face is the amount of the mortgage in terms of the value of the property. Various options exist and some may be limited on the basis of what the present mortgage company will agree to. Rates are favorable and, although it may not be apparent to you, there may be options that your present mortgage company will not agree to that you are able to obtain by refinancing the property.

You should seek the advice of an attorney. Please understand that internet correspondence and general questions as you have posed are not a substitute for legal advice. Legal adivce cannot be provided without an attorney having the ability to inquire as to the specific facts of your situation.