Q: My mom is wanting to put her house in mine and my sisters house name, what would that do yo our taxes?

A: I recommend sitting down with an estate planning professional to discuss. If your mother makes such a transfer it could be subject to gift taxes. Additionally, if she were to need benefits under a needs based assistance program like Medicaid, such a gift would impact her eligibility and may mean she cannot get benefits. As for yours and your sisters taxes, it would depend on a variety of factors. You will pay more for property taxes as you will no longer get the owner occupancy and/or homestead exemptions.

A consultation with a professional is advisable to ensure you have no unintended consequences. Moreover, depending on what your goals are, there are likely better alternatives to accomplish what is intended.

Best of luck.

A: If she transfers her house to you both as a gift, in addition to possible gift taxes, you and your sister will acquire the home with your mother's cost basis for income tax purposes, so that when you and your sister sell it, you both will also pay capital gains taxes on the increase in value for the time that your mother owned it, which could be a lot if she owned it a long time and the home value has increased significantly during that time. Your mother should consult with an estate planning attorney to discuss other options for transferring the property to you and your sister that might be better for her situation and will also save you from paying a lot of taxes.