Legal Question in Wills and Trusts in New York
Statute on gifting property
My mother is 58 years old, a widow, disabled, and receives disability Social Security ($770/month). She has no other income or income producing assets. She owns no assets besides her home. The value of her home ($150,000) keeps her from getting any type of public assistance. It also keeps her from being eligible to live in certain low income retirement facilities. She wants to gift the house to me so she will no longer have it in her asset base. What is the statute regarding gifts whereby the gifted asset will no longer be considered a part of her assets? She wants to make sure no one other than me ever gets the house.
2 Answers from Attorneys
Re: Statute on gifting property
This situation is more common than you might think.
You should consult a local attorney as soon as possible. Your mother is entitled to give you the house, but she may be responsible for gift tax.
The best way to accomplish this is to have your mother deed the house to you. This way, you will be legally responsible for the taxes on the property, and you will actually own the house.
You should take care of this as soon as possible, because if your mother requires medicaid, the house will still be hers, in the eyes of Medicaid, until 3 years after she has actually transferred the house to you. If she is already disabled, it is quite possible that she will soon need to use the Medicaid program.
Re: Statute on gifting property
THERE IS NO STATUTE, PER SE. jUST A REQUIREMENT TO FILE A GIFT TAX RETURN AND A NEW DEED, ALONG WITH CERTAIN ATTACHMENTS TO THE RECORDING OFFICE TO SHOW THE DEED WAS GIVEN AS A GIFT. I CAN HELP YOU WITH THESE NEW YORK FORMS IF YOU CALL ME AT 973-377-3313. ASSUMING YOUR MOTHER STILL HAS HER LIFETIME EXCLUSION AVAILABLE TO HER (SHE NEVER MADE EXTENSIVE GIFTS PREVIOUSLY) SHE CAN MAKE YOU THE SOLE OWNER OF THE HOUSE BY FILING A NEW DEED. A GIFT TAX RETURN (FORM 709) IS REQUIRED TO BE FILED WITH INTERNAL REVENUE AFTER THE DEED IS RECORDED. I CQAN HELP YOU WITH THIS FORM ALSO. YOU SHOULD BE AWARE THAT WHEN THE HOUSE IS TRANSFERRED TO YOU, THERE MAY BE FUTURE INCOME TAX RAMIFIFCATIONS TO YOU IF THE HOUSE IS NOT USED BY YOU AS YOUR PRIMARY RESIDENCE. IF YOU CALL ME, I CAN DISCUSS THIS WITH YOU (NO CHARGE) AND THEN HELP YOU COMPLETE THE TRANSACTION. YOU SHOULD BE AWARE THAT BASED UPON THE SIZE OF THE GIFT (THE VALUE OF THE HOUSE), YOUR MOTHER MAY NOT BE ELIGIBLE FOR SOME TIME TO GET ASSISTANCE. THERE ARE ALSO SOME OTHER INFORMATION I MIGHT NEED TO ADVISE YOU ON THAT ALSO.