How Do I Structure This Deduction/title
I was routed to this forum for this question:
Parents want to deed (gift) a house in CA to their 5 children. House has appx. 500k in equity with a 250k loan balance. Children want to take over loan payments, taxes, etc., they also plan to use this house as a primary residence.
1) If children (under a irrev. trust) can show proof of mortgage payments, tax, can they take a mortg. tax deductions even if mortgage loan is not in their name (loan remains with parents)
2) In the event this triggers a DOS, what can be done without refi or touching equity. Can a loan servicing co., solve this issue? (trust makes payments to Loan servicing)
3) Since property is deeded and no change of name of the loan (with parents) can the children, in the future, qualify for 1st time homebuyers' program
4) Does the deed need to be recorded asap to be legal so children are titled?
also, need recommendation of a real estate atty. in So. Cal (in the event one is needed)
thanks in advance for your suggestions.
It sounds like a "subject to" may work in this scenario. My response should bump you up to the top, and hopefully some experts can elaborate in more detail.
You can also read about "subject to" deals in the article section of this website.
This sounds like it's pulling in components of estate planning.
Do your parents whan to gift the house now or at their death?
I've never see "flow-thru" of expenses. ARe you working w/ a good estate atty?
Trusts can be very complicated esp. when it comes to basis, gift tax, SGT, etc.
I do know a very good atty in Costa Mesa. PM me for ref.