Legal Question in Real Estate Law in Virginia

name(s) on deed

My father passed away and his will left everything to mother; there is a mortgage on the property. As only child and will, I will inherit property at mom's death. Can I (or should I) have my name put on the deed now but not the mortgage loan to avoid paying inheritance taxes at mom's death? If the loan is not paid off prior to mom's death, it would be sold to pay loan off; however I am not interested in tying up my credit with the existing loan now on the house. Thanks


Asked on 5/24/08, 9:44 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: name(s) on deed

You should consult with an accountant or tax lawyer about this, as everyone's situation is different, but generally it does NOT make sense to do this, because most people do not pay inheritance tax, but if the house is gifted while your mom is alive, you take it subject to her basis, while if you inherit it the basis is stepped up to fair market value as of the date of death, which can dramatically lower capital gains tax upon sale.

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Answered on 5/24/08, 10:34 pm


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