Legal Question in Real Estate Law in New York
This is a real estate question: My mom is the legal owner of a co-op in New York State. My sister resides in this co-op. Mom wants to turn the apartment over to my sister. Can you tell me if there are any tax implications for either party?
Thank You,
2 Answers from Attorneys
If she transfers the shares to your sister, she will begin the "look back period for Medicaid," However, your sister's tax basis in the property will be whatever your mother paid when she bought it, creating a potential capital gains tax situation upon sale
There is a better way to take the property out of your mother's name for Medicaid purposes, but preserve the value at death for your sister.
You are advised to consult a knowledgeable elder law attorney.
Other than Medicaid, and depending on the equity in the cooperative, there may be a gift tax issue. You should talk with an accountant.
Mike.
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