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My question is, what is/was the ramification of putting the daughter on title? Can
we say for sure there was a completed gift?
H & W have 3 properties and $1.5M in cash/stocks. Total value just under $4M.
Daughter has been living in one property for many years, and been paying rent to mother (only mother is on title, not father).
Parents have been depreciating the property. They want to give that piece all to
daughter and have all the rest split evenly by 4 children. The mother is afraid
one child will have a problem with giving the daughter the one property and went
to a lawyer and had the daughter put on title.
I suggested just bequeathing it to her in a living trust (they do not have a
living trust, and husband was supposed to die a few months ago, holding on), but
I suppose she wants to avoid any fights.
I explained the various gift/sale/bequest scenarios and how that would play out
tax-wise.
But I am not sure if just because the daughter was added to the title, that
means there was a gift or sale.
People do this all the time, I see, and the lawyer who filed the deed is a
friend of mine. I do wish he had consulted me before it was recorded. Thank
for suggestions on how to proceed with or view this.
Harlan Levinson, CPA
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Harlan,
I'm not an attorney, and this situation needs an attorney. The right way to do what the parents want is to do is to create a trust, and say what they want to do, and also separate wills. My guess would be that simply putting the daughter on title MIGHT work to transfer title on death of the parents, but could be challenged for a number of reasons. Again, IANAA.
Bill Downs, CPA
Sherman Oaks, CA
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I just found out the following:
I just checked and it was titled as Joint Tenants.
The grant deed says its a bonafide gift and the grantor recieved nothing in return. (there is an asterisk pointing to this)
So, I am wondering if I should suggest rescinding the gift, or filing a gift tax return with the daughter getting the low basis.
If they continues to treat it as owned by Mother, even though daughter is on title, then can one say no gift was made?
Thanks. Harlan Levinson, CPA
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This thing is little complicated to understand can you explain it in general terms.
dog shipping
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Yes, I must say you need a attorney and for this you should call the lawyer for further help. He will surely help you in this regard.
Shaker Kitchen Cabinets
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| The attorney is the one that did this without considering the tax implications. I am just trying to understand the tax implications. The mother put the daughter on the deed of the house the daughter is renting from mother. (forget about the other stuff about the other property) The question the clients have is, should the daughter keep paying rent to the
mother?
The question I have is what is the basis for the mother and the daughter, both
now and after the mother dies? Would the daughters basis be 1/2 of the cost
basis, and a gift tax filed on that amount, or would it be the FMV which is
considerably higher?
Thank you.
Harlan Levinson, CPA
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Which type of attorney you are seeking for, please be specific.
Stinger Detox
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