Adding DS to realestate title

[RetireBy90]

Wanted to get the take from those with a legal background or experience. I was executor for mom's estate and I had setup transfer on death and beneficiaries on all her accounts (bank, brokerage, CU). We of course had paperwork to fill out but it went rather well. I have setup beneficiaries on all DW and my accounts with each other as primary and DS as secondary in case we pass at the same time.
We have 2 pieces of real estate that are in both DW and my name with right of survivorship. I plan for the surviving spouse to add DS to title/deed with right of survivorship. Will the govt allow this to be done ? We live in VA. I also was wondering about stepped up basis on the real estate if we pass the properties this way. What taxes will be due at adding DS and will he owe more estate taxes when he survives and takes ownership ?

Thanks for any assistance.

[RunningBum]

What are you trying to accomplish? Simple transfer to your son at death? Virginia allows transfer on death for real estate. Find the form, fill it out and take it down to the county registrar.

[OldShooter]

Quote:

Originally Posted by RetireBy90 ... I also was wondering about stepped up basis on the real estate if we pass the properties this way. What taxes will be due at adding DS and will he owe more estate taxes when he survives and takes ownership ? ...

Yes. Important questions. Too important to rely on SGOTI who may not have current knowledge of federal law and of your state's laws. Spend the bucks; hire a local expert.

As @RunningBum suggests, it is also very important to understand what problem you're trying to solve. Starting with a solution rather than a problem statement may cause you and your advisor to overlook other solutions or even keep you from realizing that the problem does not actually exist.

[pb4uski]

Agree with my friend OldShooter but you may find this webpage helpful as background so you can be informed before talking to a lawyer. A quick websearch indicates that Virginia allows transfer-on-death for real estate and vehicles.

One disadvantage of having DS on the deed is that my understanding is that if he is on the deed and gets sued that his interest in the real estate could be in play... I suspect similar if he is married and they divorced. I think TOD eliminates that risk while you are alive.

Quote:

Transfer-on-Death Deeds for Real Estate Virginia allows you to leave real estate with transfer-on-death deeds, also called beneficiary deeds. You sign and record the deed now, but it doesn't take effect until your death. You can revoke the deed or sell the property at any time; the beneficiary you name on the deed has no rights until your death. Va. Code Ann. § 64.2-621. Transfer-on-Death Registration for Vehicles Virginia allows transfer-on-death registration of vehicles. If you register your vehicle this way, the beneficiary you name will automatically inherit the vehicle after your death. No probate court proceeding will be necessary. Source: https://www.nolo.com/legal-encyclope...20your%20death.

[Walt34]

Quote:

Originally Posted by OldShooter Yes. Important questions. Too important to rely on SGOTI who may not have current knowledge of federal law and of your state's laws. Spend the bucks; hire a local expert.

What he said.

I see so many instances of people being reluctant to talk to an attorney because they're seemingly afraid of being charged some outrageous fee for a simple answer. I suppose that does happen but I've never seen it. In fact I've found most attorneys (even criminal defense attorneys!) to be pretty reasonable people.

[OldShooter]

Quote:

Originally Posted by pb4uski ... One disadvantage of having DS on the deed is that my understanding is that if he is on the deed and gets sued that his interest in the real estate could be in play...

Good point. We have something similar with the old family lake home, which through inheritance now has four cousins as owners. One of the cousins has had some mental health problems with consequent divorce and unemployment, then not paying child support. The state now has a lien on his interest in the lake home. No lawsuit involved. Probably the same thing can happen if there are income tax issues.

[Brat]

A neighbor put her kids on the title of her home but didn't tell them. One of the kids died leaving a widow and children. Neighbor developed dementia. Home put up for sale, offer accepted. The family had a heck of a time unraveling that mess.

If your state permits a 'transfer on death' go that route.

[RetireBy90]

Thanks for the replies. My goal is to transfer properties without heir having to go through probate. We have talked to 2 lawyers and they wanted all assets to be put into a trust.

I’ll do more research and do transfer on death paperwork, once this craziness is over. Exactly what I was looking for. Funny aside, I was talking to another form member and the 2 I had hoped to hear from both replied. Again, many thanks.