Legal Question in Real Estate Law in New Jersey

Re: Parents want to transfer Deed from their name to mine

I suggest a Deed adding you, which can be done with no realty trasfer fee, just the recording fee. The Deed can read X and Y(your parents) to X, Y and Z (your parents and you) as joint tenants with right of survivorship. This will allow you to inherit the property automatically on the death of your parents. Since you have become an additional owner, and theoretically responsible for your share of operating costs (taxes, insurance, maintenance, etc.) you should have some agreement in writing that your parents and the survivor of them shall still continue to pay all of these expenses. This will continue their tax deductions. If, for some reason, you no longer want your parents names on the Deed, the Deed should read X and Y (your parents) to Z (you), but reserve to them a life estate (the right to continue to live in the house during their lifetimes). Same recording costs. The written agreement on operating costs should also be used in this latter option. I can assist you, if you desire, in preparing the appropriate Deed and agreement. Be aware, that there are potential income tax consequenses to you as a result of the gift, and we can discuss these consequences if you call me.

Re: Parents want to transfer Deed from their name to mine

If you take the house as a gift, you will get your parent's basis for tax purposes when you sell it. Also, they will not be able to deduct the taxes any longer. In addition, the rest of your parents' assets need to be looked at since the value of the house now will be credited to your parents' lifetime gift deduction for estate tax purposes. If the estate is worth less the $675,000 including the house there is no problem. The best way to do this is to see an attorney with a copy of your parents' deed. Please call if I can be of more help.