Save Your Estate

Why should the government or anyone else direct what happens with your estate assets? Why should a court, a stranger, or someone other than your choice make the medical and financial decisions for you if you become sick and incapacitated? Why should anyone other than your spouse, life partner, or the one you choose make the decisions about your illness, hospital visits, your funeral and what happens to your estate?

Thursday, January 06, 2005

Is it a good idea to gift a primary residence to children?

QUESTION:
Category: Tax and Taxation Law
Location: TN
Subject: Put home in children's name

I am elderly and want to put my home in my children's name so that if I have to go into a nursing home they will not take my home away from my family. Will my children have to pay taxes when the home is put in their names? It will be stated on paper that I can life in the home the rest of my life. I know people in NY that did this and did not have to pay taxes. Is there a different in state laws.

ANSWER:

Do not put the home into your children's name until you consult with an Estate Planning lawyer! The transfer is a gift which may be taxable. Also, you will lose the $250k exemption for the sale of a personal residence. Finally, the transfer may make you ineligible for medicaid for several years.

posted by Unknown | 10:12 PM