Legal Question in Real Estate Law in Massachusetts
Real estate
My father owns a house in New Bedord, MA. He still has a mortgage on the house. I want to put the house in my name but my father still wants the mortgage and home insurance to be in his name. Is this possible? Can I have the deed in my name and mortgage, insurance, utilities, etc still be in my father's name? He would still be living in the home.
2 Answers from Attorneys
Re: Real estate
You have not given us the total transaction, but ( in short), if an owner deeds ownership to another, ownership passes , but the obligations for the original mortgage remain with the person who originally signed the mortgage.
Hope this helps.
Re: Real estate
Normally such a transfer would require the lender's permission. You also risk some gift tax issues depending upon the amount of the equity in the home.
Likewise, if you are assuming that your father will need medicaid some time in the future, you have to clear 5 years before the government will not include the value of the gift.
I would suggest that if your reason for making the gift is to avoid probate and your father is in good health you have two options: gift of the property in its entirety or gift of a life estate.
I would contact an attorney for assistance with this process.
Good Luck
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