Quit Claim Inlaws' Property

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club924

New member
Happy New Year!  This forum has been very helpful and I'd like for ask for some advice. 

History
My inlaws purchased a home in Irvine back in the early '80s for their son (my husband) while he was attending UCI.  He has been making the mortgage payments since the time of purchase (sometimes with the help of roommates).  The name/title of the house belongs to my inlaws.  My husband is not on the title of the house.  We will be done paying off the mortgage this year (yay!).  My inlaws have communicated to us that they would like to "give" us the house.  They would like this to be done sooner, rather than later (they are in their early 80s).

1.  What should be our first steps?  I don't care if my name is not on the title, but at least, I would like my husband's name to be on it.

The house is older and we would like to put some money into it to update it (kitchen/bathrooms/windows). 

TIA!
 
club924 said:
Happy New Year!  This forum has been very helpful and I'd like for ask for some advice. 

History
My inlaws purchased a home in Irvine back in the early '80s for their son (my husband) while he was attending UCI.  He has been making the mortgage payments since the time of purchase (sometimes with the help of roommates).  The name/title of the house belongs to my inlaws.  My husband is not on the title of the house.  We will be done paying off the mortgage this year (yay!).  My inlaws have communicated to us that they would like to "give" us the house.  They would like this to be done sooner, rather than later (they are in their early 80s).

1.  What should be our first steps?  I don't care if my name is not on the title, but at least, I would like my husband's name to be on it.

The house is older and we would like to put some money into it to update it (kitchen/bathrooms/windows). 

TIA!
Click to expand...
Quit Claim Deed is probably the fastest and easiest way to do this.  Also, make sure to also fill out the proper form for the parent/child transfer so that a tax reassessment is not triggered (see link below).
http://ocgov.com/gov/assessor/realproperty/transfer/
 
Thanks USCTrojanCPA!

Just completing a Quit Claim will take care of it?!  Didn't realize it was that easy.  Would you recommend doing it before or after the mortgage is paid off?  Does it matter?
 
club924 said:
Thanks USCTrojanCPA!

Just completing a Quit Claim will take care of it?!  Didn't realize it was that easy.  Would you recommend doing it before or after the mortgage is paid off?  Does it matter?
Click to expand...
No problem, glad to help.  Yeah, a Quit Claim notarized by your parents-in-law along with the transfer form and then go to the county recorders office and pay the recording fee and that's it.  I don't think it matters when you do it, but if you want it to be super clean then wait till after the mortgage is fully paid off and the lender issues your parents-in-law a reconveyance releasing the mortgage deed of trust.  Good luck.
 
You should talk to a tax lawyer/accountant as well regarding the income tax consequences regarding the tax basis of the house when your husband receives title. If he inherits the title upon their death his tax basis will be the fair value on the date of their death Which will lower your tax liability should u sell it. If he gets on the title now not sure he gets the current fair value as the new tax basis which could have significant income tax consequences.
 
Irvine real estate bought in the 80s is like gold.

Good luck with your transfer and do make sure you consult a tax lawyer/accountant like qwercpa recommends.
 
qwerty said:
You should talk to a tax lawyer/accountant as well regarding the income tax consequences regarding the tax basis of the house when your husband receives title. If he inherits the title upon their death his tax basis will be the fair value on the date of their death Which will lower your tax liability should u sell it. If he gets on the title now not sure he gets the current fair value as the new tax basis which could have significant income tax consequences.
Click to expand...
With the only real concern  being, that if you are married, if your basis difference is > 500K (presuming you don't sell the place until after you lived in it for 2 years as owners), than you would owe taxes when selling it. 
 
Will the house's taxable property value be really low?...
So when your husband gets the house in his name, his property tax would remain at the 1980's +2%/year valuation to 2014?
Meaning he is paying about $2,400/year in property taxes instead of $6,000/year if valued at today's market.
 
zubs said:
Will the house's taxable property value be really low?...
So when your husband gets the house in his name, his property tax would remain at the 1980's +2%/year valuation to 2014?
Meaning he is paying about $2,400/year in property taxes instead of $6,000/year if valued at today's market.
Click to expand...
Yes, there will be no reassessment since it is a parent/child transfer (prop 58) and he will keep the same property tax.
 
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