Posted on: 22nd Dec, 2009 08:49 am
My mother's name on house deed, we wish to add ours-this house later will we, the children be responsible for gift tax? Called IRS and seems you have to be psychic to know if this is best decision versus living trust or will as she could change her mind any tie so no security to our shared investment. It could be years from now when we sell after she passes and that changes sellig price! Do you have clear answer?
Hi,
Your mother is the current legal owner of the property because she is on the title. If you want your name to be added to the title, your mother will have to sign a quit claim deed to add you to the title to the property. Since she will be the grantor on the deed, she will have to pay the gift tax. She is the one who is gifting her share of the property to you. However, there are gift tax exemptions, which she can take advantage of. If the value of the gifted share of the property does not exceed the gift limit, she does not have to pay any gift tax.
Your mother is the current legal owner of the property because she is on the title. If you want your name to be added to the title, your mother will have to sign a quit claim deed to add you to the title to the property. Since she will be the grantor on the deed, she will have to pay the gift tax. She is the one who is gifting her share of the property to you. However, there are gift tax exemptions, which she can take advantage of. If the value of the gifted share of the property does not exceed the gift limit, she does not have to pay any gift tax.