Posted on: 30th Oct, 2006 10:58 am
My elderly mother needs capital to pay off some debts. Her only asset is her home. She wants to sell it to me and my sister at a much reduced price. (Market value is $178,000. She wants $30,000 from us.) We want to help her, but need to make sure we are doing the smart thing for all involved. Should we buy it, or have her quit claim it to us in exchange for paying off her debts?
using quit claim deed will be a much easier solution to have your mother give the house to you. as family transfer of property are easily completed by quit claim deeds.
Hi,
When the home is transferred to someone else, one should take note of the taxes which are to be paid as gift taxes, but there are exemptions limits up to which no tax are needed to be paid, you can go through this article for more information on this topic: Tax implications of quit claim deeds
Thanks
Colin
When the home is transferred to someone else, one should take note of the taxes which are to be paid as gift taxes, but there are exemptions limits up to which no tax are needed to be paid, you can go through this article for more information on this topic: Tax implications of quit claim deeds
Thanks
Colin
Hi Louannsteve,
Well, if you wish to pay off her debts and get the property through quit claim, that's not a bad idea at all. You will not have to pay the purchase price then even though it's a reduced amount. But ask your mom if she will agree. Your mother may require the $30,000 for her expenses on other items.
Thanks,
Sara.
Well, if you wish to pay off her debts and get the property through quit claim, that's not a bad idea at all. You will not have to pay the purchase price then even though it's a reduced amount. But ask your mom if she will agree. Your mother may require the $30,000 for her expenses on other items.
Thanks,
Sara.