Legal Question in Tax Law in New York

Re: Adding child to deed / bank account

Your parents can give you each gifts of $11,000 each and every year, plus they each have the right, over and above the annual gifts, to give up to $1,000,000 during their lifetime, without incident of gift taxes. Merely adding names might not be a gift, unless they actually want you to have equity in the assets to which your names are being added. Questions remain, as suggested by Norman, as to the reasons for adding the names. Is it merely to avoid probate (since survivors take without probate) or are they trying to do something else, like estate or Medicaid planning, or something else? I suggest contacting an estate attorney to assist if there are some other reasons and things they are trying to accomplish, to see the results they want are carried out properly. The right language has to be used if something else is being done, and a professional might be needed.

Re: Adding child to deed / bank account

I agree with the comments of the other attorneys. I would add that you should be aware that there may be other consequences to these transfers. For example, there may be transfer and recording fees. And if there is an exsiting mortgage on the property, the bank may require that the mortgage be paid off.

Re: Adding child to deed / bank account

Yes, gifts would result from the changes in ownership.

The federal gift tax doesn't kick in until the aggregate gifts amount to $1,000,000.

Why do your parents want to do this?