After their monthly mortgage payment climbed by $200, a Missouri homeowner began weighing a proposal from their parents that seemed like it could fix the financial squeeze.
Here's what to know
The homeowner explained in Reddit's r/Mortgages that their parents, both in their 60s, believed that adding them to the deed would qualify the family for a senior property tax freeze.
They said their parents' old house is paid off and that, once a sale on it closes, the parents plan to contribute an "unconditional" $50,000 toward their mortgage.
They said they trust their parents "more than anyone else in the world" and the house would be placed in a trust if the parents add their name to the deed. Still, the original poster said, "My gut instinct was NO, but I don't have any concrete reasons to present."
Commenters agreed that adding their parents to the deed would introduce new risks.
"If they're elderly and wind up in a nursing home then the house you're paying for can easily end up being taken as an asset to pay for their care," one person said.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
Another noted that a $200 uptick in the monthly payment does not necessarily mean taxes permanently increased, since escrow shortages or insurance changes can also raise the bill.
"Do not do this," they said. "You will have to pay taxes on the inherited value of the home when they pass or if they sign a quit claim deed to get off the mortgage."
"Hire an attorney," a third recommended. "Not all trusts are created equal and putting it into a trust doesn't automatically protect you."
What can be done?
Before making any move, the homeowner said they needed to check with the county collector to find out whether the county even offers the senior freeze. They also said they still did not know how the law defines being "liable" for the property's taxes.
They concluded, "If we go about this, I will be hiring my own local lawyer to represent only myself and getting their counsel first."
Where can I learn more?
Questions about deeds, taxes, and ownership often intersect with other state-by-state rules that affect what homeowners can do with their property.
• In several states, lawmakers require flood risk history disclosure before a sale closes.
• In Florida, a homeowners' Bill of Rights curbed some HOA powers over residents.
• In Texas, residents can still dry clothes outdoors despite HOA pressure against clotheslines.
• At one neighborhood pond, owners faced a $30,000 special assessment for repairs many opposed.
• In Minnesota, one homeowner argued the HOA had to allow native plants under state law.
Get TCD's free newsletters for easy tips, smart advice, and a chance to earn $5,000 toward home upgrades. To see more stories like this one, change your Google preferences here.
