<There are at least four reasons the son might want to hve the house transfered:1. he can then take the deduction for paying property taxes.2. the house will not be in parent's estate if they incurr horrendus medical expenses.3. the house will not go through probate.4. the son can borrow on home equity with a tax deduction.>Those may all be valid reasons for doing it, but for every reason on one side there is a valid reason on the other side for not doing it. Everyone's individual circumstances may vary, but one should have a clear idea of the big picture before moving ahead. Among the relevant factors to consider are the ages and health considerations of both parents; the age of the son; the sons future marital status; does the son plan on living in the same house even when his personal or job status changes, etc. If the son ever goes through a divorce the house is up for grabs and the parents could be tossed out of their fully paid for house. The same could happen if the son is not responsible with debt, has medical bills of his own, a free spending spouse, difficulty maintaining his employment or LBHM, any of which could drain the equity out of the house. If ten years or more from now the son is married and living in another state, he could be facing a huge tax bill if his parents die and the house is not his permanent residence. If they still want to go in this direction, they should consider getting professional advice from someone who specializes in this area.BRG
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