Can I transfer my assets onto someone elses name and how?

Question

I want to transfer all my assets under my aunts name...is that legal and how do I go about doing that? Such as my house, stock portfolio, savings accounts etc...

What are the tax rules that apply in this case?

Answer 1

If you transfer things with a combined value of more than $10,000. to your aunt in one calendar year, your aunt will have to pay federal income tax on the amount over $10,000. She may also be liable for state taxes, depending on which state you live in.

Also if this is to avoid a possible lien from someone, it must be a "arms length" transaction in most states. If it isn't an "arms length" transaction, the lien holder can still seize and sell the assets despite them being in someone Else's name. That means you must sell to a stranger and will no longer have a claim on the assets.

If you still want to proceed with the transfer, see any attorney, they should be able to submit the necessary paperwork for you.

Answer 2

I suggest you contact an attorney who deals with "living trusts" / tax planning or foreign offshore trusts. The attorney can set up a trust for tax purposes.

If you transfer all your money to your aunt she'll have to pay capital gains taxes. However, you could transfer your assets to a "trust" and make her the executor.

Answer 3

Your Aunt will not owe income tax (or any other tax) as an earlier poster suggested, unless the transfer was 'paying' her for something she had earned.

You on the other hand would owe gift tax (again - if it is a gift & not a payment for some work she did for you) on the amount the fair market value exceeded $10K.

Gift tax and estate tax are related. Gift tax prevents someone from avoided estate tax by 'gifting' their estate on their death bed.

Answer 4

If you are doing this to avoid having your assets seized for some debt that you owe, be aware that the transfer would probably be found to be invalid.