Missouri homeowner's $200 mortgage increase triggers cautions over parents' tax-saving idea

"Not every trust works the same way, and putting property into one does not automatically shield it."

After a monthly mortgage bill rose by $200, a Missouri homeowner started considering a suggestion from their parents that appeared to offer some relief from the strain.

What to know

The homeowner wrote on Reddit’s r/Mortgages that their parents, both in their 60s, believed adding them to the deed might help the family qualify for a senior property tax freeze.

They said their parents’ previous home is fully paid off and that, after a sale closes, the parents intend to put an “unconditional” $50,000 toward the mortgage.

They added that they trust their parents “more than anyone else in the world” and said the home would be placed in a trust if the parents were added to the deed. Even so, the original poster said, “My gut instinct was NO, but I don't have any concrete reasons to present.”

Other commenters warned that adding the parents to the deed could create fresh risks.

“If they're elderly and wind up in a nursing home then the house you're paying for can easily end up being taken as an asset to pay for their care,” one person said.

Another pointed out that a $200 increase in the monthly payment does not necessarily mean property taxes permanently went up, since an escrow shortage or changes in insurance can also push the bill higher.

“Do not do this,” the commenter wrote. “You will have to pay taxes on the inherited value of the home when they pass or if they sign a quit claim deed to get off the mortgage.”

“Hire an attorney,” a third person advised. “Not all trusts are created equal and putting it into a trust doesn't automatically protect you.”

What can be done?

Before taking any action, the homeowner said they would need to check with the county collector to see whether the county offers the senior freeze at all. They also said they still were unsure how the law defines being “liable” for the property taxes.

They concluded, “If we go about this, I will be hiring my own local lawyer to represent only myself and getting their counsel first.”

Where can I learn more?

Questions about deeds, taxes and ownership often overlap with other state-by-state rules that shape what homeowners can do with their property.

• In several states, lawmakers require flood risk history disclosure before a sale closes.
• In Florida, a homeowners' Bill of Rights limited some HOA powers over residents.
• In Texas, residents can still dry clothes outdoors despite HOA opposition to clotheslines.
• At one neighborhood pond, owners faced a $30,000 special assessment for repairs many opposed.
• In Minnesota, one homeowner argued the HOA had to allow native plants under state law.