Legal Question in Wills and Trusts in Connecticut

Parents put their house (in CT) in my name -one third in 2001, two thirds in 2002,

they have lifetime occupancy. I paid nothing for it. No gift tax was filed either year. They bought it in 1974 for 50,000- now it is worth 200,000. I have lived with them since they bought it. It has been paid off . I have been told that I will owe a lot of money on it after they pass because they didn't file a gift form. I don't have a lot of savings and they do not either. Will this be a problem, can it be corrected now- I do intend on living it as I have been, my concern is will the money become a problem - or will taxes force me out?


Asked on 2/15/14, 10:54 am

1 Answer from Attorneys
John Heffernan Heffernan Legal Group, LLP

First of all, there's a fairly complicated formula you have to use when they retained a life use. Beyond that, there are exclusions for gifts made and they vary from year to year and are different for federal and state gift taxes. I forget what they were for 2002-2003, but the numbers are readily available. There's also a lifetime gift tax exclusion which will apply. So the short answer is you may owe a small tax upon their deaths, but it probably won't force you out of the house.

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Answered on 2/15/14, 2:16 pm


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