Hi.. The time has come for my wife and I to move in with my mother. My father is in a nursing home and my mother is not coping well. She's still moderately capable, but tired, sick and confused. They want us to give the home to us and count on us to take care of my mother. I've heard of a "co-habitant with survivorship" document and living trusts, but really know little about them. Has anyone "been there, done that" that could offer some advice? Thanks ron
2007-08-21 04:10:57 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
She needs to WAIT and leave the home to you in her will. In that case, you pay no taxes and neither does she (unless you sell the house).
However, if she gives you the house now, SHE will have to pay a gift tax for giving you the house! I know that sounds crazy, but that's the way the IRS has it set up so that people can't divest themselves of large estates before they die.
If you gave any one person gifts in 2006 that valued at more than $12,000, you must report the total gifts to the Internal Revenue Service and may have to pay tax on the gifts.
The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.
Gifts include money and property, including the use of property without expecting to receive something of equal value in return.
2007-08-24 15:43:21 · answer #1 · answered by Let me steer you 7 · 0⤊ 0⤋
Yes. Have her mental competency examined. This will save a lot of head aches. She can simply transfer title - quit claim - however there may be certain mort. issues. I have a living trust for my son. It basically puts my assets in his name but he is unable to make financial decisions (he's four) until I die or assign him this right. So essentially, my four year old owns my house however I pay property taxes, perform mait., and things of that nature.
2007-08-21 11:35:00 · answer #2 · answered by CHARITY G 7 · 0⤊ 1⤋
Add you and your wife to the title as joint tenants. If you wish you could quite claim your parents from the deed in a few months. The danger is their mental capacity to do this. There could be other considerations for which you may wish to seek professional advise.
2007-08-21 11:22:00 · answer #3 · answered by ? 6 · 0⤊ 1⤋
If there are no other siblings, this sounds great. If there are, it might wise to consult with them. Laws and legal terminology differ in different states. Consult with an attorney, and keep it simple.
2007-08-21 11:46:49 · answer #4 · answered by Bibs 7 · 0⤊ 1⤋