taxes - inheritance
My father is contemplating putting all of his assets in my name (only child) - home, vehicles, etc. He feels that if he gets ill, it would be easier and less hassel. We are trying to find out advantages/disadvantages of doing this. I am already 50% owner of the home. We realize his property taxes would go up if he put the full 100% in my name. However, if he died, would I be taxed on his ownedportion at higher rate? Also - if his vehicles are put in my name, he would continue to carry the insurance if that's possible. He wants to avoid the MOST taxes (inheritance, death, etc) and feels by doing this now, I would avoid those costs later. Any advice is greatly appreciated. Thank you.
1 Answer from Attorneys
Re: taxes - inheritance
Usually, transferring all assets to a child is not a good tax move. First, the transfers will be subject to Gift tax. Second, the basis in the assets will be a carryover which could result in you paying income tax.
The smarter move woud be for your father to establish a Living Trust and Durable Power of Attorney.
Please see a good Tax and Estate attorney to help you!
I hope this helps!
Ron Cappuccio
http://www.SaveYourEstate.com
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