Legal Question in Wills and Trusts in New Jersey

I very sorry to hear about your aunt. I hope she pulls through. Unfortunately, there is no inheritance tax benefit to retitling the house unless you transfer the whole thing to your name AND she survives for three years. NJ pulls back gifts to Class D beneficiaries if they are made in contemplation of death (3 years is presumed to be in contemplation of death).

Also, if a house is jointly owned with someone else (other than a spouse), NJ presumes that the decedent owned the whole thing unless the surviving owners can prove that they paid for part of it. So again, no benefit to changing title.

Finally, gifting the whole thing now would be bad in that you wouldn't receive a step-up in basis when you sold it, resulting in a capital gains tax.

Best to your aunt.

Kevin A. Pollock, J.D., LL.M.

www.PollockAtLaw.com

P: (609) 818-1555

Licensed to practice law in Florida, New Jersey, New York and Pennsylvania.

Also, visit my blogs at:

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I agree with Kevin, even if a gift tax return were filed. The potential capital gain tax is anticipated to be increased and already has been depending upon your annual income. Of course, the inheritance tax will be due upon your aunt's death, while the capital gain tax would not be due until you ultimately sold it, which might be many years from now if you were to use it as your principal residence. Rates could again change over time, so you need to consider the tax ramifications of several alternatives.