Legal Question in Real Estate Law in Minnesota
Adding third party to Real Property joint tenancy
I am 61 years old and my husband is 75. We have been married 21 years. We live in Hennepin County of Minnesota. My husbands� son paid off our $900,000 home mortgage without my knowledge as a gift to his father. Our home is valued at $1.5 million. My husband is now asking me to sign a quit claim deed adding his son as joint tenant to our home otherwise the son will have to pay a gift tax on this mortgage payment because he is only allowed to gift $20,000 per year. I am listed in my husbands will as receiving only our home and tangible property and the remaining estate willed to all of his children. Since I do not have any other income I am troubled. What rights do I give up to my home if I agree to joint tenancy that includes the son in the event my husband dies? Will the son own majority interest in our home because of the $900,000 mortgage payment and be able to sell my home without my consent? Is there another way to handle this problem? Should I get legal representation before signing this document?
1 Answer from Attorneys
Re: Adding third party to Real Property joint tenancy
Answering your last question first: you absolutely need legal representation to protect your interests in this matter. Look for someone experienced in both estate planning and real estate, and don't be afraid to interview a couple people before making a choice.
From the facts given, the son will get an undivided 1/3 interest in the house if the quit claim deed is signed. This could be softened a little by reserving in the deed to him an exclusive life estate for you and your husband.
The concern about gift taxes is legitimate; but depending on how far down the road these transactions have already gone, there are several alternatives that would avoid or minimize or at least defer gift tax while still preserving the interest in the house you currently have.
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