Legal Question in Real Estate Law in Georgia

Re: Can property be deeded to a minor?

I would never deed a property to a minor because it would take court approval under a guardianship for the minor to sell the property while the child is a minor. A better way would be to create a trust. However, if your mother is doing this for medicaid planning, keep in mind, there is now a 5-year look-back period and the gift may be voided should she need Medicaid in the future. Additionally, gifted properties are gifted at the original basis and will be subject to capital gains when sold. For example, if your mother bought the property for $20,000 and if it is eventually sold for $100,000, taxes will be due on $80,000 capital gains at time of sale. If the property is inherited, it is inherited at the stepped-up basis (present day value) and capital gains are only calculated on the difference in value at time of inheritance and the value at time of sale. So, bottom line, before doing anything, I urge you to please consult a professional.

Re: Can property be deeded to a minor?

There are ways to handle it, but you (or she) really needs to see an estate planning/elder law attorney to make sure everything is done properly. As you guess, there may be tax consequences, but there is obviously no way for us to know what they may be. Moreover, the outright transfer of property may raise serious issues if she later needs public assistance (Medicare/Medicaid, etc.). Now is the time to have everything handled properly to avoid issues in the future.