Legal Question in Elder Law in Ohio

gift of money

My mom is selling her home and moving in with my family and me.This is the only home she has owned or sold.She will get around $50,000.00 and wants to use the money to pay off my 1st and 2nd mortgages.She is 75 and we both live in Ohio.Are there any taxes or fees either of us would have to pay in order to use her money this way.We will not be charging her to live here and her only expense will be medical needs.


Asked on 3/30/07, 3:49 pm

1 Answer from Attorneys
David Davies Law Office of David H. Davies

Re: gift of money

mom's use of her money to pay off your mortgages would be considered a gift. If the amount is more than 12,000.00, she could be required to pay gift tax. If the mortgage is in both you and your wife's names,she could probably give up to 12,000 to each of you without any gift tax consequences.

It might be better to have mom "loan" you the money to pay off the mortgages. You could have an agreement that allows her to live with you instead of you making payments to her. She could put something in her will that would forgive the debt on her death-

In any event there should be a way for you to accomplish your goal without tax consequeces. It would be a good idea to talk to her accountant before any decision is made.

The information that I have provided should not be relied on without further discussion with someone-talk directly to an attorney who can draw up the proper paperwork or/and an accountant.

If you have additional questions and do not have an attorney who you can talk directly to, feel free to give me a call-no charge or obligation for the call.

Good luck!

DHD

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Answered on 4/12/07, 5:49 pm


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