Legal Question in Wills and Trusts in Massachusetts
I would like to gift my child $200,000.00 to purchase a condo in his name - am I allowed to legally do this?
4 Answers from Attorneys
You are allowed to do this, but you must fill out a gift tax return. I recommend you contact an attorney to discuss the tax issues.
Yes you may. There will be tax consequences if not done properly. Likely, hiring an attorney will save you money. Feel free to email or call me for a free consultation.
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You can make the gift. The gift is subject to gift tax although the tax will be offset by a credit. You should contact an attorney to determine how it might impact your estate tax liability in the future.
Likewise, if the cost of the Condo is more than $200,000 and he is applying for a loan, you need to make sure the lender will allow the gift in advance before he makes an offer to buy the home, otherwise, he may need to wait a period of time before buying to make the gift a non-issue.
Please feel free to contact me if you have more questions.
I agree with the previous posters. My advice would be to hire your child a suitable real estate attorney to assist in this purchase from the beginning. A good real estate attorney can advise you on the impact of a gift in terms of both applying for a mortgage and gift tax considerations. If you would like to retain our real estate group for the purposes of providing your child with legal representation in this deal, please feel free to contact my office at 617-357-4898.