Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Adding DS to realestate title
Old 02-08-2021, 03:37 PM   #1
Thinks s/he gets paid by the post
RetireBy90's Avatar
 
Join Date: Feb 2009
Location: Cville
Posts: 1,278
Adding DS to realestate title

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.
__________________
FIRE 31 Aug, 2018 - Always leave every place better than you found it, always give more than expected
RetireBy90 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 02-08-2021, 04:24 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 11,115
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.
RunningBum is offline   Reply With Quote
Old 02-08-2021, 04:37 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,810
Quote:
Originally Posted by RetireBy90 View Post
... 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.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 02-08-2021, 04:49 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,674
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.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Old 02-08-2021, 04:51 PM   #5
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 22,595
Quote:
Originally Posted by OldShooter View Post
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.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 02-08-2021, 05:03 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,810
Quote:
Originally Posted by pb4uski View Post
... 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.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Old 02-08-2021, 05:09 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 6,920
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.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Old 02-08-2021, 06:29 PM   #8
Thinks s/he gets paid by the post
RetireBy90's Avatar
 
Join Date: Feb 2009
Location: Cville
Posts: 1,278
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.
__________________
FIRE 31 Aug, 2018 - Always leave every place better than you found it, always give more than expected
RetireBy90 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
adding realestate hotwired FIRECalc support 4 03-14-2011 11:06 PM
Adding wife's name onto title and opening a HELOC WanderALot FIRE and Money 15 04-22-2010 10:28 PM
Realestate agents & Fees rpow53 FIRE and Money 18 01-15-2008 10:11 AM
What was and Is your mortgage and realestate taxes, dumpster56 FIRE and Money 35 09-05-2006 01:23 PM
Adding to my investment Bud FIRE and Money 11 06-12-2004 04:52 AM

» Quick Links

 
All times are GMT -6. The time now is 08:54 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.