Posted on: 09th Dec, 2008 05:04 pm
My mom wants to quick claim her home to me because she has become ill. The house does not have a mortgage. Is there any gift tax or other downside cost involved if she does this? Will this create any problems with her will? I am a beneficiary and executor of her estate.
Hello tees17a,
It is my understanding that most states would not tax the transfer of title if there is not any money.
Some states may charge certain fees for the transfer. Some of these fees may include recording charges and in other cases their may be other fees for the transfer of title.
However there could be federal tax concerns. If there is little equity in the home or the equity is less than $22,000, you probably have no federal income tax consequences in the transfer.
If the equity is much more than that, there may be additional forms to file with the Internal Revenue Service relating to the gift that would be in excess of the $11,000 permissible per year.
Check with a good tax accountant or even an estate planner.
Let us know if you still have questions.
Good Luck. :D
It is my understanding that most states would not tax the transfer of title if there is not any money.
Some states may charge certain fees for the transfer. Some of these fees may include recording charges and in other cases their may be other fees for the transfer of title.
However there could be federal tax concerns. If there is little equity in the home or the equity is less than $22,000, you probably have no federal income tax consequences in the transfer.
If the equity is much more than that, there may be additional forms to file with the Internal Revenue Service relating to the gift that would be in excess of the $11,000 permissible per year.
Check with a good tax accountant or even an estate planner.
Let us know if you still have questions.
Good Luck. :D