Chicago, IL asked in Estate Planning and Real Estate Law for Illinois

Q: Grandparents put their house into a living trust & want me to have it. How to go about this?

What is the best way to put the house in my name? Are there any options where it can be gifted to me so I don't have to take out a loan? Would buying it be best (and would a first-time homeowner's credit apply?) Are there any other options? I plan actually to live in the home and not resell it, and there is a mortgage (it wouldn't be a problem to cover). There is also a Will; I am the #3 executor, and the first 2 are on board with the house going to me as well.

1 Lawyer Answer
Michael Goldberg
Michael Goldberg
  • Estate Planning Lawyer
  • Libertyville, IL
  • Licensed in Illinois

A: Your grandparents can deed the property to you, but this is problematic because there is a mortgage on the property. The mortgage likely contains an acceleration clause that states upon transfer of the property to a third party, the mortgage will be immediately due and payable on full. Further, if the property is worth more than the annual gift tax exemption, your grandparents would have to file a gift tax return. It would be best for your grandparents to speak with a lawyer to discuss the implications of transferring the property and how to avoid mortgage acceleration and incurring taxes (including transfer taxes and municipal fees).

Peter J. Weinman agrees with this answer

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.