Legal Question in Real Estate Law in Indiana
My mother wants to take her home out of her name and put it in the three children's names. She is 82 and wants to protect her property. Is there any tax liability for her children? She would continue to live there and pay the taxes and insurance.
2 Answers from Attorneys
Depending on value, etc. and how this is structured, there may not be any. Contact a local attorney.
The answer also depends in part on how the transfer of the property is structured. One option is an immediate transfer by way of a quitclaim or warranty deed to the 3 children. Another option may be for your mother to deed the property simultaneously to herself in a life estate and to the three children with a remainder interest in the property. Under this option, your mother retains a life estate in the real estate, giving her a right to ownership and possession until such time as she may pass away. When that occurs, the real estate is already in the name of the three children and her life estate is extinguished. The ultimate question of whether taxes would be assessed depends upon how the transfer is structured, the value of the property and other factors.
This response is provided for informational purposes and is not intended to serve as legal advice. You should consult with an attorney or tax professional to discuss the facts of your particular situation which may lead to additional issues or a different strategy.
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