Posted on: 17th Feb, 2008 06:07 pm
My father, prior to his passing away, included a life estate in his house to his second wife, with remainder interest to me after her death. She is now confined to a nursing home and will not be living in the house any longer. Her son, who has power of attorney for her, is willing to give up her rights to the house and turn it over to me now. What is the proper legal procedure and what capital gains implications are there for me if I sell the house after obtaining it?
Hi Jlcox,
Welcome to the forums.
I guess the son can transfer the rights of the property to you through the power of attorney only when the second wife is not mentally fit to sign on the papers. But is that really so?
The proper legal procedure would be to let the second wife sign on a grant deed and convey property interest to you. However, if she is not mentally fit, then the son can sign on the deed and transfer property. In order to execute the whole process you need to talk to an attorney because he's the one who can best draft the deed.
The capital gains implications after selling property is that, you may have to pay tax on the gains provided you don't qualify for the exemptions. Have a look at the capital gains tax exemptions from a previous dicusssion.
Take Care
Welcome to the forums.
I guess the son can transfer the rights of the property to you through the power of attorney only when the second wife is not mentally fit to sign on the papers. But is that really so?
The proper legal procedure would be to let the second wife sign on a grant deed and convey property interest to you. However, if she is not mentally fit, then the son can sign on the deed and transfer property. In order to execute the whole process you need to talk to an attorney because he's the one who can best draft the deed.
The capital gains implications after selling property is that, you may have to pay tax on the gains provided you don't qualify for the exemptions. Have a look at the capital gains tax exemptions from a previous dicusssion.
Take Care
Hi Jlcox,
Welcome to the forum.
Sara has given you sound info. She can simply quitclaim to you to transfer the property to you.
You will have to pay capital gain tax. But you may get tax exemption up to $250,000 in sales profit..
Feel free to ask if you have any further questions.
Thanks,
Larry
Welcome to the forum.
Sara has given you sound info. She can simply quitclaim to you to transfer the property to you.
You will have to pay capital gain tax. But you may get tax exemption up to $250,000 in sales profit..
Feel free to ask if you have any further questions.
Thanks,
Larry