Need some advice...

[The Bad Guy]

My wife's parents moved 2 years ago and used the money they had from their previous house to buy the new one. At the time, they wanted to put the house under my sister in law's and my wife's name, but my wife declined because then we wouldn't have been considered first time home buyers.

Well now, my inlaws are in their early 60's and they want to add my wife's name again to the mortgage. They said a big reason is my sister in law might be difficult if anything happened to them to get half out of.

They might be looking to sell the house in the near future.

My question is would something like this have any potential negative impact on my wife and our credit, income or any surprise issue if they go sell?

I talked to my parents, and my lawyer aunt, and they say there isn't, but I just want to triple check before she signs anything. I'm sure some tax and mortgage experts would know.

Thanks in advance for any help.

[God of Thunder]

sooo....you ask a lawyer, she says your good to go......and you triple check..........with a Chiefs message board.

[DaFace]

If it's just a name on a title, that wouldn't have any negative credit impact. I'd be wary if there's a mortgage involved, but if the home is owned outright, there wouldn't be any issue there.

The only issues I can think of (though I don't claim to be an expert) would be that she'd be jointly liable for anything that happened on the property, and she'd be liable for property taxes. Theoretically, the parents would likely take care of that stuff, but it'd be your wife getting sued - not them - so that could make things messy. (Of course, it's a fairly remote possibility.)

[The Bad Guy]

sooo....you ask a lawyer, she says your good to go......and you triple check..........with a Chiefs message board.

My aunt really just deals with defense cases, but it's all about resources and thinking of things I didn't consider prior.

There's a lot of people on here who have given sound advice over the years. It's not like I can't weed out the logical opinions from the BS.

[ReynardMuldrake]

Why would you put your name on someone else's mortgage? I don't care who it is. That's just incredibly stupid.

Not worth the potential trouble, IMO. Something goes wrong, it could ruin you.

[Dexter Manley]

Do you really want my advice??

[God of Thunder]

My aunt really just deals with defense cases, but it's all about resources and thinking of things I didn't consider prior.

There's a lot of people on here who have given sound advice over the years. It's not like I can't weed out the logical opinions from the BS.

Well, my personal opinion, is that it's an outrageous idea and I wouldn't consider it.

[The Bad Guy]

If it's just a name on a title, that wouldn't have any negative credit impact. I'd be wary if there's a mortgage involved, but if the home is owned outright, there wouldn't be any issue there.

The only issues I can think of (though I don't claim to be an expert) would be that she'd be jointly liable for anything that happened on the property, and she'd be liable for property taxes. Theoretically, the parents would likely take care of that stuff, but it'd be your wife getting sued - not them - so that could make things messy. (Of course, it's a fairly remote possibility.)

Yep. Thought of the taxes and liability aspect. I'm ok with all that because her parents would take care of it should an issue arise.

[DaFace]

Why would you put your name on someone else's mortgage? I don't care who it is. That's just incredibly stupid.

Not worth the potential trouble, IMO. Something goes wrong, it could ruin you.

He's not talking about a mortgage. It sounds like the house is paid for.

Still, I don't really get the core benefit of having the daughters on the title. I guess if the sister is already on the mortgage, that's a problem, but if their main goal was to make it so that their daughters could get the money out of the house if they die, they should've just done that through their will.

[LiveSteam]

Sell your house & move into your in-laws basement

[ReynardMuldrake]

Yeah, there's a big "what's the benefit" question here. I guess if the sister is already on the mortgage, that's a problem, but if their main goal was to make it so that their daughters could get the money out of the house if they die, they should've just done that through their will.

Yeah, regardless of what they're trying to do with this, there's a better way of doing it.

Unless I'm married to you, there's no way I'm signing the paperwork for your mortgage.

[Abba-Dabba]

I think the what you are looking for is personal residence trust or qualified personal residence trust. But don't take my word for it, I only stayed at a Holiday Inn once.

[Bob Dole]

He's not talking about a mortgage. It sounds like the house is paid for.

Still, I don't really get the core benefit of having the daughters on the title. I guess if the sister is already on the mortgage, that's a problem, but if their main goal was to make it so that their daughters could get the money out of the house if they die, they should've just done that through their will.

Will = taxes
Posted via Mobile Device

[DaFace]

Yep. Thought of the taxes and liability aspect. I'm ok with all that because her parents would take care of it should an issue arise.

Still, I wouldn't completely dismiss the liability issue. They might be willing to pony up financially, but what if it's something they can't afford? Again, this is an extreme scenario, but the (extremely remote) possibility is that your wife could have to spend a year in and out of court in a battle to save you from bankruptcy if someone did something weird like impaled themselves on a sharp fence pole or something.

The chances of something happening like that are slim to none, but just make sure you've thought about it and are OK with accepting a small amount of risk.

[mikeyis4dcats.]

He's not talking about a mortgage. It sounds like the house is paid for.

Still, I don't really get the core benefit of having the daughters on the title. I guess if the sister is already on the mortgage, that's a problem, but if their main goal was to make it so that their daughters could get the money out of the house if they die, they should've just done that through their will.

they're obviously trying to avoid estate taxes, but there are better ways to do it.

[DaFace]

Will = taxes
Posted via Mobile Device

Ah, good point. Never had to deal with that crap.

[DaFace]

Yeah, regardless of what they're trying to do with this, there's a better way of doing it.

Unless I'm married to you, there's no way I'm signing the paperwork for your mortgage.

I edited my above post to point out that there's no mortgage involved here, so that takes away the biggest risk.

[R8RFAN]

Why would you put your name on someone else's mortgage? I don't care who it is. That's just incredibly stupid.

Not worth the potential trouble, IMO. Something goes wrong, it could ruin you.

Because alot of parents do this so if they get sick or have to go to a retirement home the State cannot seize the property.

[mikeyis4dcats.]

although i they plan on selling before they die, estate taxes aren't the issue, unless they plan on letting the girls keep the proceeds.

[ReynardMuldrake]

Because alot of parents do this so if they get sick or have to go to a retirement home the State cannot seize the property.

Wouldn't a will or a trust do the same thing though?

[mikeyis4dcats.]

Because alot of parents do this so if they get sick or have to go to a retirement home the State cannot seize the property.

there is a statute of repose involved in this, varies by state but IIRC Kansas is 8 years. meaning if you make a move to divest your assests to relatives within 8 years, the State can move to seize the assests (or proceeds).

[BigRichard]

Because alot of parents do this so if they get sick or have to go to a retirement home the State cannot seize the property.

I believe a lot of parents do this.

[The Bad Guy]

there is a statute of repose involved in this, varies by state but IIRC Kansas is 8 years. meaning if you make a move to divest your assests to relatives within 8 years, the State can move to seize the assests (or proceeds).

Yep. In PA it's 7 years. They are in relatively good health and they've mentioned that as a reason as well.

I'm just trying to make sure there's something I'm not thinking about.

[mikeyis4dcats.]

Yep. In PA it's 7 years. They are in relatively good health and they've mentioned that as a reason as well.

I'm just trying to make sure there's something I'm not thinking about.

I'm not a financial whiz, but if they sell their house I think you could be hit with some capital gains.

[Buehler445]

Will = taxes
Posted via Mobile Device

For estate taxes? There is a $5M exemption through 2013. WTF kind of house are we talking?

I'm not a financial whiz, but if they sell their house I think you could be hit with some capital gains.

That is a potential problem. Won't be a big deal if you get to keep the proceeds.

[R8RFAN]

Question is, would you rather see your wife get the house or the state?

Unless of course they are just uber rich

[Demonpenz]

Thread title: I need some advice
Posted by The Bad Guy
Opens Thread: Hey guys I am trying to sell my preseason tickets for 2012. They are in Section B and I am willing to part with them for 120 Dollars. That is below face.

[The Bad Guy]

Thread title: I need some advice
Posted by The Bad Guy
Opens Thread: Hey guys I am trying to sell my preseason tickets for 2012. They are in Section B and I am willing to part with them for 120 Dollars. That is below face.

If you drank a gallon of anti-freeze and off'd yourself, would anyone care besides your drug dealer?

[mlyonsd]

As long as it's just a name on a title and not a mortgage I think you're ok. The only problem I see is the liability issue as DaFace pointed out.