Quit Claim in CT and HELOC on it - Posted by Keith

import · September 25, 2003, 8:35am

Posted by William Bronchick on September 26, 2003 at 10:28:51:

Federal law generally prohibits a lender from enforcing a due on sale upon the transfer of ownership from parents to children. There may, however, be a gift tax implication; the equity in the home would be used against her unified credit for estate tax purposes If she does not have a large estate (under $1M), it may not be a big deal anyway. Review this issues with your local attorney.

import · September 25, 2003, 8:35am

Posted by Keith on September 25, 2003 at 08:35:17:

Hello,

I have read the archives and have found some similar posts but not exact. I hope you don’t mind.

My mother in law is wanting to give my wife and me her property but still live in it. The original mortgage is paid off but it has an outstanding home equity loan.

I assume the easiest transfer of ownership would be a Quit Claim Deed. If we do this, will we have to pay any taxes or fees besides the recording fees at the town hall?

Can my mother in law continue to pay off the existing home equity line without disturbing that schedule or will it be considered due?

Thanks for all your help.

Keith