How will we be affected if I am currently named as sole heir in my father’s trust and now he wants to add me to the house deed which is also in the trust?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How will we be affected if I am currently named as sole heir in my father’s trust and now he wants to add me to the house deed which is also in the trust?
My father wants to add me to his house deed but I am already named as the only heir in his trust ( house in in the trust). I have the power of attorney for health and finance and he wants me to reapply for an equityline. The bank tells me despite the POA that I need to be on the deed to apply. How will this impact the current tax situation for us both ( property taxes,tax exemptions). And how would this affect the sale of the home after I inheirit it (value of home). Aditionally, how would the IRS and Medicare look at this action if my father has to enter a nursing home (he is age 76 with health issues)?
Asked on June 22, 2012 under Estate Planning, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
From a tax perspective if your father names you to the deed to the house that is in trust with respect to his estate and he then passes, the house that you would own does not get a stepped up basis upon his death which would be a disadvantage to you financially.
I do not see why you have to be on title to the property for your father to have a home equity line of credit if you have the power of attorney for him.
Depending upon the amount of your father's estate, he might consider making gifts of his estate in an amount of $13,000 per year tax free.
Medicare is your father's health insurance and it should have no issues with respect to your father's estate issues. I suggest that you and your father consult with a Wills and trust attorney to go over estate planning issues for him in conjunction to the issues mentioned in this answer.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.