My husband purchased a home in 1993, we married in 1994. He has held the home as an individual - a single man - all these years. We are refi...

Question

My husband purchased a home in 1993, we married in 1994. He has held the home as an individual - a single man - all these years. We are refinancing the home, and will be needing my income to qualify, so we will be adding me to the grant deed. What is the best choice, joint tenants or community property with right of survivorship?

I need some clarification. What is the difference between a grant deed and the title? If I am on the grant deed, am I on the title. I sure don't want to be responsible for the mortgage payment, but not on the house title.

Thanks for the advice.

Answer

Most tax and estate planning professionals would advise you that holding title as community property with a right of survivorship is the best, because of the stepped up basis upon the death of one of the spouses.

The grant deed is the instrument used to pass title. The title is the state of ownership based on the deeds. Someone looking at the grantor grantee index at the county recorder's office would be able to tell who has record title by looking at the deeds, in what is known as a "chain of title."

If you are on title to the property, the lender is not going to loan the money unless you also sign the deed of trust. You can't have it both ways. If the lender did not get you to sign the deed of trust, they would lose their security if your husband passed away.