Transfer Ownership
We’d like to transfer the ownership of our home to our daughter for a nominal sum. How would we go about this with little fuss and expense. Anyone who’s done this before?
We’d like to transfer the ownership of our home to our daughter for a nominal sum. How would we go about this with little fuss and expense. Anyone who’s done this before?
estate tax and gift taxes are intertwined because people try to get around the estate tax by giving everything away before they die. Hence the gift tax.
I do think there’s a $5 million exemption for gift tax, but I think it’s lifetime. I’m sure you’d want to talk to a CPA about this and not some kibitzers on a blog.
what does estate tax have to do with it? they are not planning on dying.
keep in mind that at the state level – NY still has the 1M estate limit, and the taxes are pretty hefty once you go over.
Whatever you do don’t make it joint ownership.. Transfer it completely. My parents went through this, and my father and his sister jointly owned a house for over 10 years. Because it was her primary residence, and all the tax payments, and other considerations were paid by the house account (not his or hers specifically) – he owed “death tax” in nys on half the value, which combined with a few other estate assets still totaled just a hair over 1M
It’s not complicated or expensive to record a deed, but you should get some real advice from an attorney and/or tax pro. I think carraig is confusing the gift tax with the estate tax.
In 2009 estates were tax-free up to $3,500,000
For 2010 there was no estate tax
The law was supposed to bring back the maximum tax-free estate to $1,000,000 for 2011 but the Obama compromise with the repubicans made it $5,000,000
The annual exclusion amount for the gift tax is $13,000 for an individual (or 26k for a couple).
http://www.irs.gov/businesses/small/article/0,,id=164872,00.html
It’s really just a matter of filling out and recording a deed. The new gift tax exclusion is 5 million each for you and your wife so there is no possible tax to worry about.
If you need an attorney Bob Koeppel, 718-858-5727, 44 Court Street is a decent person.