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What steps would my Grandmother need to take to transfer a property to me?
My Grandma owns my mothers house and they both want to transfer the house into my name. They want to do this now instead of in her will because I guess you can avoid a lot of taxes and fees? So She wants to "sell" it to me for like a dollar. One more thing, she wants a stipulation saying that my mother has the right to live there for as long as she needs/likes.
So how do I go about doing this? I was reading that there is gifting tax? Also would I need a separate contract stating that my mom can live there, or can that be entered into the new "Deed" or what ever I get.
What kind of lawyers do we need and what paperwork are we going to need to do? Anything I am missing or should know?
Thank you ahead of time :)
5 Answers
- LandlordLv 71 decade agoFavorite Answer
She is going to need a lot of money, she is going to have to pay the gift tax on the house if she does this, which is almost 20% of the houses value.
She needs to deed the house to both you and your mother to give her legal rights to live there, if she is not on the deed this can not be done.
Additionally any liens on the house will have to be paid by the grandmother before she can deal with gifting you the house.
- Steve DLv 71 decade ago
Get a good real estate or financial lawyer - the IRS will look at this as a gift and there will be special forms to fill out for your grandmother to avoid taxes. You aren't going to avoid a lot of fees - the deed will have to be re-recorded which costs just as much either way (selling, willing, etc.). You will avoid probate however.
Remember that the deed can only be transferred if the house is owned free and clear (no mortgage).
- real estate guyLv 71 decade ago
You need a real estate lawyer to set up a "life estate" for granny.
You need an accountant to explain about the taxes that may be due with this GIFT.
- TedExLv 71 decade ago
She needs an attorney. Any attorney who handles wills and estates ( most of them do) can take care of this. If you do not have an attorney, call your county bar association and ask for a recommendation.
There is noi way around this.
Remember, doing something like this could be interpreted as a transaction in anticipation of death, and the estate tax ramifications could be a nightmare.
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- Anonymous1 decade ago
Grandma needs to consult an estate attorney. What she contemplates may not be the best way to handle it.
