Legal Question in Wills and Trusts in Minnesota

Re: Giving property to a relative.

If you want to avoid gift tax (you do not specify how large your aunt's estate may be - so there may not be any tax if she gave the property now), she could just do a simple Will leaving the property to you on her death. Howsever, since you are 1 of 5 relatives, all entitled to inherit equally, you could be subject to a claim for undue influence by the other nieces if they decide to contest the Will.

She could give you the property now, subject to a continuing life estate for her (which might subject the transfer to possible gift tax depending upon the property value and the value of her remaining assets). However, by reserving the life estate and depending upon her age now, the market value used for determining possible gift taxes will be substantially reduced, so there may be no tax.

By becomming the record owner now, it is your responsibility to pay all operating costs of the property (taxes, insurance, repairs and maintenance, etc.), but you could provide in the Deed that these continue to be your aunt's sole responsibility until she dies or vacates the property. Then she would continue to pay these bills, as she has been doing to date. The Deed would avoid a Will contest in the future, assuming she was in good health (physically and mentally when she gave you the Deed. I would recommend that you have her regular physician examine her before she signs the Deed (to verify her competency) and also act as a witness to the Deed, to avoid problems in the future. In fact, I have done this recently for a client who has multiple children and was leaving the house to only one of them.

If you want more details, I would need to know values, etc., to properly and completely respond.

Please understand that these are general answers, ince values and figures have not been