Posted on: 25th Mar, 2007 12:23 am
my mother wanted to leave her house to me, her daughter, and we consulted a finacial planner for the elderly. i live in the house with her,it is paid for, and have been taking care of her and her finances. the planner suggested a quit deed and we had papers signed so the house is in my name now. the taxes are now in my name and have been paid. however, my accounted said we made a big mistake because now she will have to pay a gift tax on it. in addition, he said the quit deed will not stop an agency from taking the house upon her death. it was suggested that this be done to protect it in case of nursing home care cost. the house was appraised at about $134,000 and is over 40 years old. it need repairs, but i am afraid to spend a lot of money on it if i could lose it. she is worried sick now that i will be on the street when she passes away. i am the only one of my siblings who has been responsible for her and the upkeep on the house which is why she wants me to have it. we thought by going to a planner and a lawyer everthiong was on the up and up. what should i do?
hi steedandpeel,
welcome to the forums.
you have spoken of some agency. what is it? is it some sort of insurance company?
it's true that the house cannot be protected by quit claim deed. such a deed will not relieve you from your financial obligations. and, it's true, until and unless you are confirmed that you can keep the house, it's no use doing the repair work.
before i could advise you further, please let me know what the agency is all about. it will be easier for me to suggest something good for you.
thanks,
sara
welcome to the forums.
you have spoken of some agency. what is it? is it some sort of insurance company?
it's true that the house cannot be protected by quit claim deed. such a deed will not relieve you from your financial obligations. and, it's true, until and unless you are confirmed that you can keep the house, it's no use doing the repair work.
before i could advise you further, please let me know what the agency is all about. it will be easier for me to suggest something good for you.
thanks,
sara
Well I think the house is yours now. Taxes are also coming in your name; I do not see why upon her death the house will be taken by any agency.
About the gift taxes, if she has not crossed the $1 million life time exemption limit then she will not have to pay any gift tax, but only need to file a gift tax return.
About the gift taxes, if she has not crossed the $1 million life time exemption limit then she will not have to pay any gift tax, but only need to file a gift tax return.
"In addition, he said the Quit Deed will not stop an agency from taking the house upon her death."
Quit claim deed is a valid legal document commonly used in property transfers between family members. If properly made out such a deed effectively transfer all property interest grantor has to person named as grantee.
If you can provide more details about the agency you are talking about then I can give you more clarification on whether they can take the house or not.
David
Quit claim deed is a valid legal document commonly used in property transfers between family members. If properly made out such a deed effectively transfer all property interest grantor has to person named as grantee.
If you can provide more details about the agency you are talking about then I can give you more clarification on whether they can take the house or not.
David