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Then why are you here, asking random people on the internet?
RM
The question was not in regard to IRS issues. Actually, if you read through the thread, the way the IRS handles monetary gifts over the $18K limit is the topic of several posts. Many people misunderstand how gifts in excess of $18K are handled. Just know you can give a gift in excess of $13M…yes million…before taxes are due. You simply have to report gifts in excess of $18K. Reporting will not trigger taxes due.
The question was seeking suggestions on how to title the property. And as mentioned in the OP, of course I will discuss with a lawyer (actually have an appointment tomorrow) but hoping for some ideas to bounce off the attny.
The question was seeking suggestions on how to title the property. And as mentioned in the OP, of course I will discuss with a lawyer (actually have an appointment tomorrow) but hoping for some ideas to bounce off the attny.
And....
That will be far more interesting than the thread being bogged down with the tax implications.
Hoping you will have something to share on title and associated topics.
Attny suggests we title in trust in son’s name and son write a will giving lifetime estate, with her paying taxes, to girlfriend.
Since owner of the property is man age 87 recently widowed from his wife and now living with adult daughter, Attny thought we should have conversation with his heirs to see if they wanted offer now with a chunk of money but close the deal upon his death to avoid taxes for him. I doubt they will want to do this but my son is reaching out to them.
Wouldn't that take the land out of your husband's family?
I should probably have explained that one better, sorry! The lifetime estate would provide his girlfriend the right to live in the property (and pay the taxes) as long as she desired or until death. Upon death the property would go to my son’s designated heirs…who would be my grandchild or another family member.
The lifetime estate would provide his girlfriend the right to live in the property (and pay the taxes) as long as she desired or until death. Upon death the property would go to my son’s designated heirs…who would be my grandchild or another family member.
I should probably have explained that one better, sorry! The lifetime estate would provide his girlfriend the right to live in the property (and pay the taxes) as long as she desired or until death. Upon death the property would go to my son’s designated heirs…who would be my grandchild or another family member.
Another example of the value of a trusted probate/estate attorney. Worth every penny if you want things done right...
Attny suggests we title in trust in son’s name and son write a will giving lifetime estate, with her paying taxes, to girlfriend.
Since owner of the property is man age 87 recently widowed from his wife and now living with adult daughter, Attny thought we should have conversation with his heirs to see if they wanted offer now with a chunk of money but close the deal upon his death to avoid taxes for him. I doubt they will want to do this but my son is reaching out to them.
The heirs would almost certainly want the step-up in basis upon the death of the property owner, unless the current deal is otherwise structured to make them whole on the taxes.
Since owner of the property is man age 87 recently widowed from his wife and now living with adult daughter, Attny thought we should have conversation with his heirs to see if they wanted offer now with a chunk of money but close the deal upon his death to avoid taxes for him. I doubt they will want to do this but my son is reaching out to them.
As the surviving spouse, the "recently widowed" owner can still claim the married $500,000 exclusion from capital gains tax--provided the home is sold within two years of his wife's death. It may be best not to muddy the waters with an agreement which may still be construed by the iRS as a present-day sale. (Lots of unknowns here about what your attorney might be proposing.)
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