West Wendover, NV asked in Estate Planning for Nevada

Q: Is it better to file a quitclaim deed or to buy my mom’s house?

Her house is almost paid off and it is the only inheritance I have. She wants to make sure I get the house, but I don’t know what’s better - a quitclaim deed or have my mom sell the house to me for a minimal amount.

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1 Lawyer Answer
Kirk Kaplan
Kirk Kaplan
  • Estate Planning Lawyer
  • Las Vegas, NV
  • Licensed in Nevada

A: Neither is a good idea. The first reason is quitclaim deed is just a method of transfer of real property - it alone does not trigger a tax savings technique. Sale of the residence for a minimal amount will trigger a gift subject to gift tax reporting for any value sold for less than the FMV (usually determined by obtaining an actual appraisal - not a broker estimate). Then, and only then will you received her basis in the property - usually what she bought it for. So for example you purchase the house from her for $10 and the FMV of the house is $200,000, you mother will have a gift ax reporting requirement the IRS of $183,890 (200,000-10-16,000 annual exclusion).

To obtain actual tax saving advise and effective methods of "making sure [you] get the house" you should consider seeing an estate planning attorney who has tax knowledge (like who also is CPA).

I wish you well.

Nina Whitehurst agrees with this answer

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