Legal Question in Real Estate Law in Arizona
Deed of Gift or QuitClaim deed
A mother and father want to gift their primary residence to their daughter.
Should they use a quitclaim deed or a deed of gift to transfer title into her name.
The mother and father have lived in the house for 30 years and are entitled to the 500,000.00 tax exemption on the property, when they sell. Would the tax exempt still apply when gifting the property to the daughter?
2 Answers from Attorneys
Re: Deed of Gift or QuitClaim deed
I will not answer this question until I know why the mother and father want to do this. If it's for estate planning purposes or medicaid purposes, then the mother and father should really talk to an estate planning or elder law attorney.
In my experience, giving away the primary residence is almost always a bad idea with many unexpected consequences.
Re: Deed of Gift or QuitClaim deed
I agree with the answer by Mr. Blum. Not enough facts are known here to give an answer. Also, the gift has Gift Tax ramifications, and we do not know information about the size of the estate of the parents, if they have used part of their lifetime credit in the Gift//Estate tax, what the income tax ramifications will be for them, if there is a mortgage, and other issues.
Present this case to an estate attorney. Too many issues for this forum, and too many possible issues and risks.
Best regards,
James D. Jenkins
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