Posted on: 10th Dec, 2010 01:21 pm
my mother owns 2 houses. we are concerned about the potential tax hikes leading to 55% taxes on the portion of an estate exceeding $1m (or the other proposed tax change that would mean 35% taxes on any estate under $5m). the current value of the estate is close to $2m. the houses are currently in a living trust. i want to purchase one of the houses, but i don't know if i can do it and still maintain the tax provisions currently in force under prop 13. is there a way to get my name added onto the deed, get it out of the trust, and avoid the potential tax repercussions? also, we are currently residing in the house in question. my mother lives in the other property. if a quit claim is appropriate, what provisions would you suggest? also, with a quit claim deed, would my name (or mine and my husband's name, as we are in a community property state) be on the deed as soon as the quit claim was complete?
any information and direction would be greatly appreciated.
any information and direction would be greatly appreciated.
Welcome mikeandlorri,
If you want to purchase the property, then you will have to remove it from the living trust. Then your mother can sign a quitclaim deed and transfer the property to you. If it is a gift transfer, then your mother will be liable for paying the gift taxes.
If you want to purchase the property, then you will have to remove it from the living trust. Then your mother can sign a quitclaim deed and transfer the property to you. If it is a gift transfer, then your mother will be liable for paying the gift taxes.