Legal Question in Real Estate Law in New Jersey

My parents purchased their house in 2003 in NJ, with a 15 year mortgage, and now they have a little less than half of the purchase price left to be paid. Early in 2010, my father had a quadruple bypass, and he stopped working in March 2010. My mother is the only person who has an income. So, my parents asked my brother and I to take over the payments of the house.

They have no problem transferring the ownership of the house over to us because they were going to leave the house to us anyway. I would like to know the easiest and least expensive process to transfer the property. My biggest worries are the gift tax, the capital gains tax, the property going through probate, and the house being counted as an asset for my parents. I would like the ownership of the property to be in my and my brother's name, but still be able to take advantage of tax deductions such as the senior citizen property tax deduction.

I have done my own research and came across the quit claim deed and the enhanced quit claim deed (aka ladybird deed or superdeed) as viable options. I have also looked into having my parents transfer the property into a trust. Please let me know what your professional legal advice is.

Thank you!


Asked on 7/19/10, 2:33 pm

1 Answer from Attorneys
Miriam Jacobson Retired from practice of law

Your mother should consult an "Elder Lawyer" to make sure that, by deeding the house to anyone, she would not be jeopardizing any rights or benefits she may need within the next few years.

The tax issues you raise depend on the value of the house and a number of other factors.

You can't have any senior citizen tax deductions you are talking about if you own the house,

unless you, too are a senior citizen.

If trusts are indicated as a way to deal with these issues, trusts are not a DIY project. The person who will be setting up the trust, in all likelihood your parents, should consult with the lawyer.

This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.

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Answered on 7/19/10, 8:21 pm


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