Q: My mother gifted me her house in NJ and has a life estate. Can she release the life estate?
If it can be released, are there any tax liabilities(besides any capital gains) if I sell the house?
A:
Life estate can be released if the person signs a new Deed. Hire an attorney to do the following:
1. Telephone consultation with client & Office consultation with client.
[Office consult alone is $150 fee]
2. Offer sound legal advice to client.
3. Opening of file and offer client free office brochures
4. Prepare Deed form on computer, insert Property location - type street, city/town, state, zip.
-Insert in deed Sellers name/s should be inserted.
-Type New Owners name/s., -Type in prior Book # page #
-Type in the date the sellers purchased property.
-Type in- Municipal Lot and Block.
-Type in other necessary information in Deed.
5. Prepare Affidavit of Title- Insert where seller will live after Deed.
6. Insert transfer details,
7. Print Deed & Affidavit of Title.
8. Prepare Affidavit of Partial Exemption.
9. Prepare 1099 for no capital gains tax, if applicable.
10. Prepare Seller's Residency Certification/Exemption
11. Prepare correspondence to County Clerk. [Note- You must pay the mandatory fees to the county Clerks' office, and deliver the Deed and papers to the Clerk's office
12. Preparation of End of Case Letter and client questionnaire.
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