Quitclaim ownership to son

4 Replies

I live in Texas, can I Quitclaim ownership of my home to my son without problems before I get married to keep it out of a new marriage?

Would it cause problems for my son?

Also, I still have a mortgage, will that be a problem?

Hi Kenneth, you may want to consult your CPA for tax issues and your estate planning attorney as well.

Briefly, yes, you can quitclaim anything you want to anyone. You will have tax/gift/estate reporting. Do you want to maintain any control of the home? If its a sham transfer, the new wife can easily undo the transfer.

Review your mortgage documents and it will likely have a prohibition on such transfers.

Good luck!

@Kenneth Kussman

Any property brought into the marriage will always be your property in Texas.  She could obtain some ownership with commingling of funds and such at some point but keeping it separate property is not that difficult 

Originally posted by @Kenneth Kussman :

I live in Texas, can I Quitclaim ownership of my home to my son without problems before I get married to keep it out of a new marriage?

Would it cause problems for my son?

Also, I still have a mortgage, will that be a problem?

I am neither an accountant nor lawyer, but here are a couple of potential pitfalls with your plan.

1) if you are still on the loan, you are still liable for the payments regardless of who owns it.

2) If you give your son an asset, there can be tax implications on the gift if it is done incorrectly. 

Quitclaim relinquishes your ownership in the property but does not relieve you of the mortgage. I had an applicant recently who had done that to give the house to her ex-husband after a divorce. He quit paying the mortgage. It was foreclosed. And guess who has a big fat foreclosure on her credit report.

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