Posted on: 08th Apr, 2007 12:11 pm
lady bird deed in florida
Will we have to pay taxes on the gains of the property value from the orginal cost of the property, or will we be taxed on the capital gains from the current assessed valuation of the property.
Will we have to pay taxes on the gains of the property value from the orginal cost of the property, or will we be taxed on the capital gains from the current assessed valuation of the property.
Hi Djsk,
Welcome to the forum.
The ladybird deed does not result in capital gains tax for the beneficiaries. The beneficiaries or the grantees will not receive any gains from the sale proceeds as such. This is because the original cost of the property is not taken into account. Instead, the stepped-up basis or the value of the property on the day of the last grantor's death is considered. And, the stepped-up basis is the value of the property at which it is put up for sale. Therefore, there isn't any gain and hence no tax on the gain is calculated.
Thanks,
James.
Welcome to the forum.
The ladybird deed does not result in capital gains tax for the beneficiaries. The beneficiaries or the grantees will not receive any gains from the sale proceeds as such. This is because the original cost of the property is not taken into account. Instead, the stepped-up basis or the value of the property on the day of the last grantor's death is considered. And, the stepped-up basis is the value of the property at which it is put up for sale. Therefore, there isn't any gain and hence no tax on the gain is calculated.
Thanks,
James.
I want to transfer my deed from myself to myself by ladybird with my daughter as beneficiary. I already have homestead exemption in Broward County Florida. Will it effect my homestead status? Will it trigger the county to consider this a "sale" where they will re-assess my property and possibly increase my property tax? What is the amount of money for documentary tax: Is it nominal or is it based on the value of the porperty? thank you
Hi Donna,
Transfer of property can cause the house to lose its homestead status, in case the ownership of the property changes. In your situation, you will remain the legal owner of the house because you are transferring the property to your own name with your daughter as a co-owner. It should not affect the homestead status of your property. The transfer will not be treated as a sale and it will not trigger re-assessment of the property. The amount of documentary stamp depends on the value of the property. You can contact your local county recorder's office to know how the documentary tax is charged for property transfers.
Transfer of property can cause the house to lose its homestead status, in case the ownership of the property changes. In your situation, you will remain the legal owner of the house because you are transferring the property to your own name with your daughter as a co-owner. It should not affect the homestead status of your property. The transfer will not be treated as a sale and it will not trigger re-assessment of the property. The amount of documentary stamp depends on the value of the property. You can contact your local county recorder's office to know how the documentary tax is charged for property transfers.
Is lady bird deed legal in Missouri and where can I find a form?
Hi dolores,
As per my knowledge, a lady bird deed is not applicable in the state of Missouri. However, the Missouri non-probate transfer laws do allow the use of beneficiary deeds. The deed allows you to transfer property to your beneficiaries while avoiding probate. Your beneficiaries get the ownership only after you are deceased. So, as a grantor you do retain your rights to the property. You can transfer the ownership through the beneficiary deed even though there is a mortgage on the property.
Thanks,
Jerry
As per my knowledge, a lady bird deed is not applicable in the state of Missouri. However, the Missouri non-probate transfer laws do allow the use of beneficiary deeds. The deed allows you to transfer property to your beneficiaries while avoiding probate. Your beneficiaries get the ownership only after you are deceased. So, as a grantor you do retain your rights to the property. You can transfer the ownership through the beneficiary deed even though there is a mortgage on the property.
Thanks,
Jerry
Does Massachusetts, New Hampshire, Vermont, and Maine have Lady Bird Deeds?
Hi Shirley,
Ladybird deed is applicable in the states of Ohio, California, Florida, Texas and Kansas. It is not applicable in Massachusetts, New Hampshire, Vermont, and Maine.
Take care.
Ladybird deed is applicable in the states of Ohio, California, Florida, Texas and Kansas. It is not applicable in Massachusetts, New Hampshire, Vermont, and Maine.
Take care.
My siblings and I inherited a home in Michigan from my Mother thru a ladybird deed this year. When we sell the home, will we be subject to the step up basis from the cost of my mothers original purchase price to the price we sell the home for or from the value of the property at the time of her death?
You will have to pay capital gains taxes based on the amount of profit that you make from the sale of the property.
Yes but is the profit amount based on the value from the time of my mother death to when we sell the home or is it from the time my mother purchased the home to when we sell the home? That is what I am not sure of. We were told with a Ladybird deed, the beneficiaries inherit property at a "stepped-up" basis, which is the value of the property on the day when the grantor passes away and that was one of the benefits of the Ladybird deed.
Hi tw,
As far as I know, you will have to pay the capital gains taxes depending upon the value of the property when your mother purchased the home.
Thanks
As far as I know, you will have to pay the capital gains taxes depending upon the value of the property when your mother purchased the home.
Thanks
I am also in Mich. and my mother wants to have a quitclaim deed or a ladybird to avoid probate, is one better then the other? Can you wait to register the quitclaim?
Welcome ter,
If the property is free and clear, then your mother can use a warranty deed in order to transfer the property in your name. Once the property is transferred in your name, you won't have to probate it once your mother is deceased. However, you should record the deed as soon as it is signed.
If the property is free and clear, then your mother can use a warranty deed in order to transfer the property in your name. Once the property is transferred in your name, you won't have to probate it once your mother is deceased. However, you should record the deed as soon as it is signed.
I need to put my son on my deed just incase I died but I don't want to have him loose the 1st time on buying his home too. will the lady bird be good ? can he be on more then 1 house?
hi redy,
once you transfer the property to your son, either through a quit claim deed or a ladybird deed, he would become the owner of the property. thus, he won't remain a first time home buyer. you can draft a will and declare him as the beneficiary. in that case, he would be able to own the property only after your death.
once you transfer the property to your son, either through a quit claim deed or a ladybird deed, he would become the owner of the property. thus, he won't remain a first time home buyer. you can draft a will and declare him as the beneficiary. in that case, he would be able to own the property only after your death.