June 2nd, 2010
how to handle mother’s property?
my mother, who is moving in with me, wants to sign over the house that she is living in now to me. what is the quickest, cheapest and most legal way to do this? should I just buy it from her or does she have to will it to me?
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Filed under: Buy Property
If she gives it to you, it counts as a gift and your cost basis is her basis. It is better if she just leaves it to you but what will you do with it until she dies? Can it be rented out?
A quit claim deed is easiest way to do it. she issues it and records it at county clerk office. She will have to pay a gift tax if she does this.
but if she would bequest it to you upon death it is better financially.
Do NOT do this until you consult with an estate attorney. You (and she) could be making a very expensive mistake.
That all depends ..
1) Do u want to keep the home ??
2) Does it have alot of equity ???
3) Can you sell it in the Current Realestate Market ??
If your concerned about just getting rid of it , have her list it and sell it now. She gets up to $150,000 of profit to not have to pay Tax on. Anything she makes over that she needs to pay Uncle Sam Capital Gains Tax……
Go to your local title company and ask these questions. They have Real estate attorneys on staff who can handle these questions and give you great advise on the best way to complete the bequest.
Have fun with your mom.