Posted on: 26th Jan, 2010 07:37 am
Is there a vehicle that would allow my mother and father to make my son the recipient of their vacation home upon their deaths? I've looked at quit claims and life estates but don't know which would be the preferred method. They will continue to pay all taxes and bills on the property. I've also thought adding his name to the title would be a possibly.
how about a will?
thanks for the quick response.......i failed to say that i would also like to avoid any tax ramifications/obigations with the transfer.......
for tax questions, your best overall bet is to discuss them with a tax advisor. you'll be given the best methods by which to avoid taxation.
just so i'm clear about the quit claim.........once it is filed, the ownership transfers?.......reason i ask, is that my parents will continue paying the taxes and bills until their deaths as i said.......they don't want to put my son in the financial position of having to pay the bills.......will their name still be on the title until such time as they choose to remove it or die?
quit claim deeds can be done in a variety of ways. let's call your parents "a" and "b" and your son "c."
a and b could quit claim their interest in its entirely to c and he would become the sole owner, and, therefore, responsible for taxes, and any other needs.
a and b could also quit claim their interest to a and b and c, which would then create a situation in which all 3 are owners. obligations for tax, etc. would then accrue to all three, but of course, they could work out whatever solution they desire.
a and b could also quit claim to c as well as either of themselves (a or b), and my comment in the previous paragraph would still apply.
even if they grant full ownership to him and none to themselves, they can still pay all the bills if they so choose. it's not so much a matter of legal responsibility, but by the same token, if they're not owners, i'd say that the irs would not take kindly to them writing off the payment of said taxes. of course, the irs would have to have reason to question it to begin with, i'd guess.
i hope this settles your mind a bit.
a and b could quit claim their interest in its entirely to c and he would become the sole owner, and, therefore, responsible for taxes, and any other needs.
a and b could also quit claim their interest to a and b and c, which would then create a situation in which all 3 are owners. obligations for tax, etc. would then accrue to all three, but of course, they could work out whatever solution they desire.
a and b could also quit claim to c as well as either of themselves (a or b), and my comment in the previous paragraph would still apply.
even if they grant full ownership to him and none to themselves, they can still pay all the bills if they so choose. it's not so much a matter of legal responsibility, but by the same token, if they're not owners, i'd say that the irs would not take kindly to them writing off the payment of said taxes. of course, the irs would have to have reason to question it to begin with, i'd guess.
i hope this settles your mind a bit.