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What I found in the delinquent tax records, and after narrowing down to another property, that the owner has not paid taxes in 10+ years, and has done a ladybird gift deed to her niece – 2-1/2 years ago. So till the owner is alive, she can live in her own house, and control it like she owns it, (and she does own it):-) The owner is 70+ years old.
The point nobody has raised to her seems to be the fact that she HAS to pay her property taxes, or the boogie tax man will be coming soon.
How do I approach her? I am sure the niece is waiting in the wings for the aunt to kick the bucket soon.
What should I offer the owner?
LADYBIRD (ENHANCED LIFE ESTATE) DEED
The owner/grantor retains the benefit of the right to sell, lease, or mortgage, and keep all proceeds from this, keep all property exemptions, and other tax advantages, and even have the right to deed the property back to himself/herself. This avoids probate, and the transfer to the beneficiary/grantee is automatic at the time of death of the grantor.
Let me summarize again:
- Owner-occupied property
- Owner is in her 70’s
- Homestead property
- Delinquent taxes: 10+ years
- Taxes owed: around $28k
- ARV without expansion: $164k
- Ladybird Deed in 2015 signed with the grantee being a 47 year old niece.
The owner somehow does not realize that it is a matter of short time the 10+ years in delinquent taxes will raise red flags at the County’s 3rd party attorney’s office – the one that issue the lawsuit.
What is the most creative way to approach this, Jackie? What should I offer her, and the terms?
Let me summarize again; the last post got split up.
Owner-occupied property
Owner is in her 70’s
Homestead property
Delinquent taxes: 10+ years
Taxes owed: around $28k
ARV without expansion: $164k
Ladybird Deed in 2015 signed with the grantee being a 47 year old niece. The owner can live in the house till she does and the property will get transferred over to the grantee/beneficiary AFTER the owner’s death.The owner somehow does not realize that it is a matter of short time the 10+ years in delinquent taxes will raise red flags at the County’s 3rd party attorney’s office – the one that issue the lawsuit.
What is the most creative way to approach this, Jackie? What should I offer her, and the terms?
During a Ladybird Life Estate, the owner (Grantor) can change the grantee at anytime, and without the Grantee’s permission. The neice may not even know that she the Grantee
You should contact the owner/grantor immediately.
Offer to pay the back taxes now and later in exchange for her changing the grantee to YOU.
She will NOT want to move out most likely otherwise she would not have set it up this way. So paying the taxes is the best solution. You can usually work out a payment plan with the tax authorities.
BEWARE that they may have already started foreclosure for non-payment of taxes. A title search would reveal this.
Here’s a little more info about the Ladybird Life Estate —
http://www.mhenergylaw.com/news/effect-of-a-lady-bird-deed-on-ownership-in-texas/
Thank you, Jackie for replying here. I have done a title check, and been to the property tax office too to confirm if anything has been initiated. I also called Linbarger, etal- county’s outsourced law firm that conducts the foreclosures on the county’s behalf. So I am safe that way.
Before I knocked on the owner’s door I wanted to confirm with you if the best route would be to offer paying off her taxes, letting her stay in the house, in exchange for becoming the beneficiary in the ladybird life estate. This would mean a long drawn out fulfillment of profits though. I could work a payment plan with the county.
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