Q: My father purchased a home in California while he was a green card holder but he is no longer an LPR
He is a Japanese citizen and lives abroad. He has one daughter who is a naturalized US Citizen and a son that is a LPR and Japanese citizen. What are the tax implications to transfer ownership to one of us? Should it just be specified on his will or is it better to do it while he is alive?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
If your father wants to transfer ownership of his California home to either you or your sibling, there may be tax implications to consider. The specific tax implications will depend on several factors, including the value of the property and the citizenship status of the parties involved.
If your father is no longer a U.S. resident or citizen, he may be subject to U.S. gift and estate tax rules. This means that if he transfers ownership of the property to one of you, he may be subject to gift tax if the value of the property exceeds a certain threshold. However, there are also exemptions and exclusions available that may reduce or eliminate the tax liability.
In general, it's a good idea to consult with a tax professional or an estate planning attorney who can help you understand the tax implications and advise you on the best course of action. They can also help you evaluate whether it's better to transfer ownership while your father is still alive or specify it in his will.
In some cases, it may be advantageous to transfer ownership while your father is alive, as this can help reduce the value of his estate and minimize potential tax liabilities. However, there may also be practical and legal considerations to take into account, such as ensuring that all parties are in agreement and that the transfer is properly documented.
Ultimately, the best approach will depend on your specific situation and your father's wishes. A tax professional or an estate planning attorney can help you evaluate the options and make an informed decision.
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.
