Posted on: 18th Aug, 2011 08:10 am
my sisters and I are POA for our mothers finances. She has dimentia and lives in a nursing home. She owns a house free and clear. We want to do a quick claim deed and put it in our names as a gift. Is this legal and what are the tax issues Gail
Hi Kat,
In order to transfer the property to you and your sister as a gift, your mother will have to sign a warranty deed or a grant deed. If you have a POA on her behalf to take decisions regarding property matters, then you can transfer the property in your names. Or else, you need to contact a real estate attorney and take his opinion in this matter.
Thanks
In order to transfer the property to you and your sister as a gift, your mother will have to sign a warranty deed or a grant deed. If you have a POA on her behalf to take decisions regarding property matters, then you can transfer the property in your names. Or else, you need to contact a real estate attorney and take his opinion in this matter.
Thanks
jameshogg is correct. In addition, your mother may be liable for a gift tax for the non-exempt equity in the property. The gift tax exemption is $13,000. You may want to wait until she passes then transfer the property out of the estate. The estate tax exemption is over a million dollars which will allow you to transfer the property tax free. If the property is over $1 million you should consult with an estate planning attorney.
