Parent’s house on son’s land may lead to problems
The information in this column is intended to provide a general understanding of the law, not as legal advice. Readers with legal problems, including those whose questions are addressed here, should consult attorneys for advice on their particular circumstances.
Q: My son and daughterin-law are letting me build a small house on an acre of their land. They have a mortgage, but I will pay cash for my house. How can I be protected if they get a divorce, my son dies, or they lose the house?
A: You clearly understand the risk of building a house on land you don’t own.
There are other issues to consider in addition to the ones you have identified. You also should be concerned with property taxes, the homestead exemption (including the over age 65 exemption, if applicable), access (such as an easement to the land that you are using to build your home), and inheritance rights after your death.
Before building, you should meet with a real estate attorney to discuss your options. It may be best for your son and daughter-in-law to sell you the acre of land you intend to use, and grant you an easement if you need to cross their land to get to your home, so that when you build, it will be on land you own.
They could also give you the land, or lease it to you long-term. Their lender might need to be involved, depending on the approach you decide to take.
Q: I signed and recorded a Transfer on Death Deed for my house. If I execute and record another deed, selling the same property before my death, is the Transfer on Death Deed automatically null and void?
A: Yes, the Transfer on Death Deed would then be void.
Q: How come Municipal Utility Districts don’t give a homeowner the over 65 tax break like the county and school districts do? They charge a lot more than the county and school district taxes combined.
A: Many MUDs do offer over 65 exemptions.
You can go to www.hcad.org/ resources/jurlist.asp to see the amounts that are available for the MUDs in Harris County.
Q: My wife and I have a revocable living trust. We own a ranch which has appreciated in value. If I should die first, and my wife sells the property, what is the cost basis of the ranch for tax purposes?
A: The cost basis would be the full fair market of the ranch on the date of your death.
Q: If my 14½-foot-tall recreational vehicle is damaged by an overhanging branch while driving through my subdivision, is the homeowners’ association responsible to pay for the damage?
A: No. The damage to your vehicle would be covered by your own RV insurance, less your deductible.
Ronald Lipman, of Houston law firm Lipman & Associates, is board certified in estate planning and probate law by the Texas Board of Legal Specialization. Email questions to stateyourcase@lipmanpc.com