Ivette M SantaellaEstate Planning AttorneySan Ramon, CA ·
Hello,
So sorry to hear about your Mom's illness.
If she is mentally competent, she can add your sister to title as "Joint Tenant with right of survivorship". Any further questions it is recommended that you consult with local counsel.
Good luck
I am sorry you are going through this situation.
However, before you add someone to the title for the deed, there are other tax consequences to consider, such as your mother's basis in the property. When someone inherits a piece of property, they receive what is called a "stepped up" basis in the property -- for example, if your mother purchased the property for $10,000 and it is now worth $100,000 -- if someone inherits it, they receive a stepped up basis to the fair market value, so their basis is $100,000 when they go to possibly sell the property in the future - they have less realized gains. However, if you add a name to the property, their basis remains the initial basis of the $10,000 so if they go to sell it later on, they realize more possible gains.
I would suggest sitting down with an estate and elder law attorney in your area to go over not only the issue of the house, but other possible issues such as revising any wills, trusts, medical directives, and financial powers of attorney, if your mother is still mentally competent. Many estate and elder law attorneys will visit the client if they are too ill to leave their homes or the hospital they may be residing in.
Sorry to hear of your Mom's health crisis. Two suggestions: Presuming that your mother is still mentally competent, she can EITHER execute a Living Trust & move the property into it by means of a Deed, or she can sign a deed adding your sister and you as Joint Tenants, so that upon her eventual death the property is yours & your sister's. I hope this is helpful.