My mom has a house in her name and a loan through Bank of America around 60,000.. She wants to put the house in my name.

The loan document with the bank likely has a clause allowing the bank to demand payment in full if the ownership of the house changes. The county's assessor's office likely will consider the house to be a sale for at least the balance of the outstanding loan and will demand that real estate excise tax be paid on the amount of the sale. The tax is about 2% of the amount of the sale. The donor likely will have to file a federal gift tax return. There may be other consequences. Your mother should review her specific facts with her attorney to find out whether what she proposes to do will accomplish what she wants.

Among other issues, putting the house in your name subjects the house to any legal issues (judgments, bankruptcies, pending lawsuits, future liability) that you may have. Anyone can become the defendant is a personal injury suit that ends with a nasty judgment against you. If that is the case, it is possible that any property you own, such as your mother's house, can be at risk. Also, if your mother is trying to avoid a medicaid lien problem in the event she is forced into a nursing home, there is a 5 year lookback provision that can effectively undo these type conveyances. Also, may be tax issues that need to be addressed with tax attorney or accountant. Lastly, if a deed transfer is done after all of these an other issues are addressed, there is no real need for the deed to be a quit-claim deed. Regular warrantly deed will suffice and helps prevent title curative issues down the road. Hope this helps.

Your mother should definitely talk with an Elder Law Attorney who is familiar with Medicaid eligibility before she decides whether this is a good thing to do. Depending on her age and the expected condition of her health over the next 5 years, the Medicaid transfer penalty that she will incur by making this gift is a very significant potential risk. The Medicaid transfer penalty will preclude (or at least affect) her potential eligibility for Medicaid if she needs long-term care within the 5-year period immediately following the conveyance to you. I suggest she consult with Barry Meyers at his Everett office. His telephone number is 425-303-0330. There are numerous other issues that must be considered by your mother - - - and also you - - - as well: For example, your mother needs to evaluate the risk of putting the home in your name because you could evict her from the home (she wouldn't be the first mother that was treated in this fashion after having deeded her home to her children). Also, your creditors could seize the home if you got into financial trouble or had to file bankruptcy. Your mother very likely has a "due on sale" clause in her mortgage with BofA that might give them the right to require payoff of the mortgage as a result of the conveyance of title to you. She should get verification in writing from BofA that they will approve this transaction before she decides whether to deed the property or not. If your mother has a senior citizen exemption from general real estate tax, she will lose that exemption because she is no longer the owner of the property. From your perspective, your mother's gift of the home to you during her lifetime will cause you to "carry over" her basis for purposes of any capital gain tax liability that you will incur when you ultimately sell the property. This problem will be mitigated to some extent if you are residing in the home for 2 out of the last 5 years immediately preceding your sale. However, it might be better for your mother to leave the home to you in her Will. If she holds the property until her death, then you will receive a "step-up" in basis that will minimize the capital gains tax liability when you sell the property. If you reside in the home for 2 out of the last 5 years before the sale, you will be able to sell the property for $250,000 ($500,000 if you are married) more than the fair market value as of the date of your mother's death without incurring any capital gains tax liability. Of course, if your mother holds the property until her death in order to accomplish the capital gains tax protection for you, she risks the possibility that she will need long-term care at some point in the future. If so, and if she needs to qualify for Medicaid to help pay for that care, then there will be a lien on the property after her death to repay all of the Medicaid benefits paid for her benefit during her lifetime. We used to solve most of the foregoing issues in the past by conveying the property to the child or children, and reserving a life estate in favor of your mother. However, that remedy has been pretty much discredited by new rules that impose Medicaid recovery rights against the reserved life estate. The foregoing is not a complete list of the issues involved. So, it should be pretty obviouis to you that what appears to be a simple issue is actually quite complex. It is well worth your mother's time to consult with an Elder Law Attorney like Barry Meyers in Everett. Good luck to you and your mother. Dan Kellogg Renton and Kent, WA

I hope that you can see, based on the excellent responses that you have received, that there is a whole lot more to this than, how does mom put the house in my name. There are ways to accomplish whatever your mother is trying to achieve without subjecting her, (and you), to the negative consequences, (or potential negative consequences), that the other lawyers have referenced. You need to have your mother meet with an estate planning attorney who will sort this all out for you and provide her with the best option for doing this, and then set things up properly. The cost of having an attorney do this for you is nominal when compared to the costs of trying to undo improperly set up estate plans, if this can even be done. Have this done right, the first time! And regardless what is done with the house, make sure that your mother sets up durable power of attorney forms for financial and health care decisions. These forms will allow you to act on her behalf and handle her affairs, if she ever becomes incapacitated. These forms eliminate the need for probate appointment of a guardian/conservator, and help you take care of your mother, while she is still alive. James Frederick