Do grantees of lady bird deed have to pay capital gains tax?

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Icon Mini Profile djsk1944





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Post Posted: Sun Apr 08, 2007 12:11 pm    Post subject: Do grantees of lady bird deed have to pay capital gains tax?
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lady bird deed in florida
Will we have to pay taxes on the gains of the property value from the orginal cost of the property, or will we be taxed on the capital gains from the current assessed valuation of the property.
Icon Mini Profile jameshogg
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Post Posted: Sun Apr 08, 2007 8:30 pm    Post subject: RE: florida ladybird deed
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Hi Djsk,

Welcome to the forum.

The ladybird deed does not result in capital gains tax for the beneficiaries. The beneficiaries or the grantees will not receive any gains from the sale proceeds as such. This is because the original cost of the property is not taken into account. Instead, the stepped-up basis or the value of the property on the day of the last grantor's death is considered. And, the stepped-up basis is the value of the property at which it is put up for sale. Therefore, there isn't any gain and hence no tax on the gain is calculated.

Thanks,
James.
Donna D

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Post Posted: Wed Dec 16, 2009 1:14 pm    Post subject: Lady Bird Deed
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I want to transfer my deed from myself to myself by ladybird with my daughter as beneficiary. I already have homestead exemption in Broward County Florida. Will it effect my homestead status? Will it trigger the county to consider this a "sale" where they will re-assess my property and possibly increase my property tax? What is the amount of money for documentary tax: Is it nominal or is it based on the value of the porperty? thank you
Icon Mini Profile jenkin7
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Post Posted: Mon Dec 21, 2009 12:23 am    Post subject:
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Hi Donna,

Transfer of property can cause the house to lose its homestead status, in case the ownership of the property changes. In your situation, you will remain the legal owner of the house because you are transferring the property to your own name with your daughter as a co-owner. It should not affect the homestead status of your property. The transfer will not be treated as a sale and it will not trigger re-assessment of the property. The amount of documentary stamp depends on the value of the property. You can contact your local county recorder's office to know how the documentary tax is charged for property transfers.
dolores

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Post Posted: Sun Mar 21, 2010 12:28 pm    Post subject: lady bird deed
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Is lady bird deed legal in Missouri and where can I find a form?
Icon Mini Profile jerry
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Post Posted: Mon Mar 22, 2010 3:40 am    Post subject:
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Hi dolores,

As per my knowledge, a lady bird deed is not applicable in the state of Missouri. However, the Missouri non-probate transfer laws do allow the use of beneficiary deeds. The deed allows you to transfer property to your beneficiaries while avoiding probate. Your beneficiaries get the ownership only after you are deceased. So, as a grantor you do retain your rights to the property. You can transfer the ownership through the beneficiary deed even though there is a mortgage on the property.

Thanks,

Jerry
Shirley

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Post Posted: Sat Jul 10, 2010 8:46 am    Post subject: States that have Lady Bird Deeds
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Does Massachusetts, New Hampshire, Vermont, and Maine have Lady Bird Deeds?
Icon Mini Profile sara
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Post Posted: Mon Jul 12, 2010 5:26 am    Post subject:
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Hi Shirley,

Ladybird deed is applicable in the states of Ohio, California, Florida, Texas and Kansas. It is not applicable in Massachusetts, New Hampshire, Vermont, and Maine.

Take care.
tw

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Post Posted: Mon Aug 09, 2010 6:25 pm    Post subject: ladybird deed in Michigan
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My siblings and I inherited a home in Michigan from my Mother thru a ladybird deed this year. When we sell the home, will we be subject to the step up basis from the cost of my mothers original purchase price to the price we sell the home for or from the value of the property at the time of her death?
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Post Posted: Tue Aug 10, 2010 12:28 am    Post subject:
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You will have to pay capital gains taxes based on the amount of profit that you make from the sale of the property.
tw

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Post Posted: Tue Aug 10, 2010 3:12 am    Post subject: ladybird deed in michigan
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Yes but is the profit amount based on the value from the time of my mother death to when we sell the home or is it from the time my mother purchased the home to when we sell the home? That is what I am not sure of. We were told with a Ladybird deed, the beneficiaries inherit property at a "stepped-up" basis, which is the value of the property on the day when the grantor passes away and that was one of the benefits of the Ladybird deed.
Icon Mini Profile jameshogg
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Post Posted: Wed Aug 11, 2010 12:34 am    Post subject:
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Hi tw,

As far as I know, you will have to pay the capital gains taxes depending upon the value of the property when your mother purchased the home.

Thanks
ter

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Post Posted: Thu Aug 12, 2010 6:41 am    Post subject: ladybird vs quitclaim deed
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I am also in Mich. and my mother wants to have a quitclaim deed or a ladybird to avoid probate, is one better then the other? Can you wait to register the quitclaim?
Icon Mini Profile adonis
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Post Posted: Thu Aug 12, 2010 10:51 pm    Post subject:
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Welcome ter,

If the property is free and clear, then your mother can use a warranty deed in order to transfer the property in your name. Once the property is transferred in your name, you won't have to probate it once your mother is deceased. However, you should record the deed as soon as it is signed.

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Post Posted: Thu Aug 19, 2010 2:13 pm    Post subject: mi which deed do I use
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I need to put my son on my deed just incase I died but I don't want to have him loose the 1st time on buying his home too. will the lady bird be good ? can he be on more then 1 house?
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