Legal Question in Wills and Trusts in New Jersey
My mother owns a house in NJ that she is presently living in. She wants to give my sister and I the house upon her death. She is 83 years old and in good health. What I would like to do is to be able to transfer ownership to us upon her death via a gift deed or a quitclaim deed. This enables my mother to continue to pay her taxes at her rate and turn over the house automatically upon her death. Do you think this is the way to proceed? or is there a better solution?
1 Answer from Attorneys
Normally, your mother would leave the house to your sister and you in her will. This would enable her to own it until her death. If she were to give you a quitclaim deed now this would be considered a gift which would be subject to taxation and you and your sister would have a transfer basis. For example, suppose the house were worth $500,000. If your mother paid $100,000 for the house, and then gifted it to you, you would have a transfer basis of $100,000. This means that upon the sale of the house you have an automatic gain of $400,000. If, instead, your mother leaves the house to you and your sister in her will you have a date of death stepped-up basis, in this case $500,000.
Of course, the tax law could all change depending on what Congress decides to do about the estate and gift tax!
I hope this helps you!
Ron Cappuccio
www.SaveYourEstate.com
Related Questions & Answers
-
Does a lawyer have to provide the deseased will if it exists. Asked 2/01/10, 10:11 am in United States New Jersey Probate, Trusts, Wills & Estates
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
