Legal Question in Real Estate Law in Virginia

real estate and minors

I am considering gift-deeding a parcel of land to my minor daughter who is nine. We are then considering selling it for her and putting the money in her savings account for college. If we deed it to her, can we sell it for her if the deed is soley in her name? If we can sell it for her, can we/she use any of the money before she turns 18 if the account is solely in her name. The reason for the questions are: 1-I think her capital gains tax would be lower than mine. 2-If the money is in my savings account or hers with my name also, it would affect how much financial aid my older step daughter gets who is currently in college


Asked on 3/12/09, 9:27 am

1 Answer from Attorneys
Jonathon Moseley Moseley & Associates Law Firm

Re: real estate and minors

Sounds like a classic situation where you would want to set up a trust. You put the property into the trust (if that is better than just selling it outright). Then the money goes in the trust. And the trust controls when you or she can use any of the moeny. The restrictions would be spelled out in the trust that YOU write.

However, if you transfer the property to her name, technically only she could sell it. However, because she is a minor, you could sign the contract and deed on her behalf as her parent. The question is whether the buyer would accept this as sufficent documentation that your signature is good.

Often the problem is not whether soemthing is legally correct but whether you can convince the other party that it is okay and they should accept your signature, for example.

In that case, if you put the money in her saving account, she could do anything she wants with the money.

I would double check on the capital gains tax. Are you sure a different rate would apply?

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Answered on 3/12/09, 12:19 pm


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