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gift tax and quitclaim deed with life estate

Posted on: 04th Nov, 2009 10:06 am
Do gift taxes have to paid on a house in Massacusetts if the house is signed over with a quitclaim deed for less than $100 and has a life estate on it. The house is worth approx $200,000.00
Hi bpelton,

The grantor will have to pay gift taxes only if the property is transferred as a gift to the grantee. As the property was sold for $100, I don't think it would be considered as a gift. However, to be on the safe side, consult a real estate attorney and he would help you in this regard.

Thanks
Posted on: 04th Nov, 2009 10:09 pm
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