Legal Question in Wills and Trusts in Massachusetts

Re: Mortgage and deed.

Echoing other comments, it is important that before taking any action, you and your sister sit down and think through what would happen under various scenarios: e.g., what if she no longer wanted the house, how would you buy her out? Would you be able to afford to buy her out? What happens if one of you needs nursing home care and cannot afford it? What if there are expensive repairs which are not covered by insurance? Etcetera. An attorney will ask you to think through a variety of likely scenarios before answering your question, to avoid future problems which you may not have considered.

As far as the tax issues, the answer is probably not, but additional facts are needed in order to verify any potential answers. That is, it depends upon your situation. See also the comments regarding credit - which apply after recording any new mortgage or deed, i.e., if you did not keep up with mortgage payments, it would likely affect your sister's credit record.

You do need an attorney, and it probably would be a good idea for your sister to have her own counsel.

Mortgage and deed: fact or fiction.

You should really sit down with an attorney and make sure that your goal and your sister's goals and purposes are clear to each other, and whatever needs to be put in writing, should be done.

If there is a mortgage, there may be a problem with putting her on the deed. You cannot put her on an existing mortgage. You can add these when you refinance.

Wills can be changed. Does your sister understand this. Once her name is on the deed, she can sell her share to any one. There are probably other problems that neither one of you anticipates.

If you would like to have your questions answered, contact me.

Re: Mortgage and deed.

CAN you put your sister on the deed? Sure -- you're selling her an interest in exchange for $50,000.

Whether a lender would issue a mortgage to both of you depends on the quality of each person's credit. You should also keep in mind that by being on the deed, each of you carries the risk of exposure to the other's creditors.

Your sister may be a wonderful person, but the facts will determine whether the deal may or may not be a good idea. Given the value of real estate, I strongly advise that each of you sit down with separate real estate attorneys. You should work out an agreement which addresses how you will each minimize the various legal and financial risks which can happen here. You also need to be sure that the title is structured properly to allow for a smooth transfer in the future.