Q: My mom is wanting to put her house in mine and my sisters house name, what would that do yo our taxes?
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.