I intend to gift my daugter my property.?

Question

I understand there is a 6 year moritorium regarding liability. Can anyone point me in the direction for information?

Answer 1

Depending upon the value of the property you may be subject to Gift Tax. There is an annual exclusion of $12,000 per recipient along with a lifetime $1 million exclusion. The lifetime amount ties in to the estate tax so any lifetime exclusion used will lower the estate tax exclusion dollar for dollar.

For numerous reasons it would not be a wise idea to give the property to your daughter. She will receive your basis if you gift it to her which will eventually impact her tax liability when she sells the property. If you leave it to her in your will, she will receive the stepped up basis on the date of your death. This will lower her potential tax liability, possibly by thousands of dollars.

There are other ways to transfer this to your daughter and minimize the tax bite for both of you. Consult with a qualified estate planner before proceeding.

There is no "6 year moritorium regarding liability" in US tax law.

Answer 2

Ditto on consulting an estate planning/elder law attorney.
You may be thinking of the 5 year "look back" period before you can get Medicaid (i.e.-All us other taxpayers) to pay your medical/nursing home bills.
If this is your home and you intend to continue living there, another good reason to not just gift it to her is she could get sued, lose the home, and you would be out in the street.

Answer 3

In the UK there is a system whereby gifts are taxed with inheritance tax on the death of the donor as if they had kept the money and this is reduced over six years. The USA may have a similar system.

Answer 4

You may be thinking of the restrictions on Medicaid for nursing home care. Rules may vary by state. Below is a reference. I don't know how current it is. You should ask a lawyer in your state.

Answer 5

She is a very girl.
hope she appreciates it
Go and talk to someone who knows all the legal stuff :)