Should we take her name off the title?

Question

My mom and I bought a house together after my divorce. She is 85 and in fairly good health, she gets medicare and social security and works at a part-time job. We were wondering due to her age if we should take her name off the title of house in case she becomes incapacitated or an untimely death. I couldn't have bought the house without her income so I don't know if that would even be possible to do it, but we don't want to think the house could be taken away by and outstanding debt if she dies.

Answer 1

If you took title as "joint tenants" then if she dies you would get full title to the house.  This is separate from the mortgage.  If only her name is on the mortgage, then you would need to refinance it into your name should she pass.  If you don't pay the mortgage after she dies, they can foreclose, take the house.  

Answer 2

You can not take her name off the title without her permission and the lender's permission.  Since you could not have purchased the house without your mother's income, the lender will probably not approve a refi based on your income alone.  Therefore you are stuck.  Your worries are legitimate.  In the worst case scenario, after your mother's death you would have to sell the house, split the proceeds(if any) and settle her estate that way.  An alternative to selling would be for you to buy up her half of the property after her death based on the amount of equity that has accumulated in the house which avoids the expense of selling(that expense could easily exceed the equity).  Good luck!

Answer 3

It depends how you hold title - if it's joint tenancy with the right of survivorship - then the property will automatically go to you upon her death. Also, as far as her debts, the property should be homesteaded to protect your rights. One thing I would be concerned about is that if she would need to go into a nursing home and you cannot pay for her care - then they will probably want to take ownership of the home so that it pays for it.

If you put the deed in your name - transfer her interest to you - the Lender will most likely do nothing as long as the payments are being made so I wouldn't worry about that.

Answer 4

She is 85 and working a part time job?  I hope it is because she wants to work and not because she has to!  I know if it was my parent still working at that age because they had to I would work MY *** off so they wouldn't have to work.

What kind of debt does she have?  Is it all current?  Is she on your loan as well?  To be honest, your best bet would be to discuss it with the attorney she has her estate set up with.  There really isn't any reason to remove her.  If she passes, the house becomes yours anyways since you are on title.  If she has debt when she passes, there is a slim chance her half would have to be used to pay off the debt.  But really, you need to speak with her attorney about it.

Answer 5

Thom is right and Frak is wrong. you don't need the banks permission to take her name off the deed. you can do a JT deed with right of survivor ship and god forbid if anything happens to her probate is a breeze as far as the home is considered