Legal Question in Real Estate Law in New Hampshire

Re: Trust or Quit Claim?

Either option may work, depending on your situation. I would need further information to evaluate.

Re: Trust or Quit Claim?

This is a rather complicated area of law. The two conflicting issues are the mortgage and tax impact. You can transfer the house to the kids reserving a life estate to yourself. However, this creates a potentially taxable event. I'd need a lot more information to evaluate. You can also Quitclaim your interest and rent the property from them. Under either of these methods, there is a risk that you may be in violation of the terms of your mortgage. You need to check to see if the house can be transferred without permission of the bank. Sometimes it is easier and avoids tax impact if the house passes to the children pursuant to your Will or through a trust. I suggest that you need to meet with an attorney to evaluate the options and select the method which will achive the majority of your goals while minimizing tax impact.

Re: Trust or Quit Claim?

The short answer is that you should consult with an attorney prior to making any decision. There are consequences and options which you may not have considered.

Note that by transferring property during your lifetime, you may miss out on certain income tax benefits, particularly if your children would sell the real estate after your death.

It is possible to transfer into a "living trust" (revocable trust) which would pass the title to the real estate to your children upon your death (subject to claims of your creditors), though they will obtain a "step up" in basis. There are advantages and disadvantages.

However, if you are in poor health, you should really see an attorney soon, while you are still able to think and act clearly. You should contact an experienced estate planning attorney in your area. (I live in Concord and see clients in this area, so if you are interested in a further consultation and are willing to travel this far north, please feel free to contact me.)

You can also obtain names and numbers through the NH Bar Association Lawyer Referral Service, which should be in your Yellow Pages. (Which is not to suggest that the other attorneys responding to your question are not amply qualified to assist you as well.)