My husband and I are going through a loan modification with BofA. However we cannot qualify because my name is on my parents home, which is paid in full. I would like to quickclaim the deed to my sibling to clear my name. My question is will my parents home value be reassessed? We are trying to avoid significant increases in property taxes, if at all possible. Can you may a suggestion?
Thank you,
Mary
Contact your county appraiser about whether you can do a child-to-parent transfer to rid yourself of ownership without reappraisal under Prop. 58. Essentially, such transfers are not reappraisal triggers, but there may be a limitation based on a principal residence requirement.
This first step, if permissible, would accomplish the first half of your desired ownership change. (Property transfers between siblings are not exempt and would result in reappraisal of the part interest transferred.)
The second and final step might also be possible under Prop. 58: the parents-to-your-sibling transfer. However, I see additional likely obstacles, including possible rules about multiple transfers of the same property and residency requirements. So maybe the second half of the ownership shift would have to be accomplished by your parents setting up a living trust.
In addition to property taxes, the family should consider capital-gains and gift tax impacts of transferring ownership of part interests in real property.
