Legal Question in Wills and Trusts in Michigan

If he is transferring it only to you, and not you and him jointly, then it may, if the house is not your primary/principal residence, as the taxes would then be calculated at the non-homestead rate. If you don't live there, but do not own another house, then it may not be caught by the taxing authorities. Why does he want to put the house in your name? If it is simply for purposes of the house becoming yours when he passes, then you should both be listed on there jointly. Keep in mind that if you are on the deed, then you are equally responsible for all taxes and other assessments on the property, if he does not pay them, so be careful. If he is transferring it because he is filing bankrupty, the court will catch it and assume he is committing fraud, so he shouldn't transfer at all.

In most cases, the transfer to you alone will cause a real estate property tax uncapping which means the property taxes could increase. Even if the deed is not recorded now, in addition to later collecting back taxes due, county assessors have been watching for these transactions and could charge interest and penalties for the unpaid taxes. Additionally, unless the home is also your primary residence, there will be a loss of the homestead property tax exemption. Finally, such a transfer may even result in added taxes related to the capital gains on the property when it is sold.

Even if the transfer is to you with him remaining a co-owner, transferring the house this way is generally not the best option for other reasons including possible creditor liability and lack of control (for the current present owner). Michigan law provides for better property transfer options to accomplish your father's objectives. He should consult with an attorney experienced in estate and property transfer issues to make sure that the option he chooses will address all of his needs with a minimum of risks.

A transfer to you could cause the property, whether homestead or not to be uncapped, thus raising the taxes on the property. There are better ways to handle this if you're only doing it to avoid probate, which is usually why people ask this type of question. http://www.wolverinelaw.com