Posted on: 30th Mar, 2007 05:11 am
my elderly mother owns a house. she is no longer able to care for herself and is rotating between me and my siblings. i want to buy the family house from her and pay for it monthly to cover her living expenses. i dont want her social security and medicare/medicaid to be impacted, or cause any tax implications. what's the simpliest and least expensive way to do it.
can't i use quit claim deed to transfer house title from her to me, and then just pay for the house into a "family" account to use for her expenses? also what legal work will i need to set everything up?
can't i use quit claim deed to transfer house title from her to me, and then just pay for the house into a "family" account to use for her expenses? also what legal work will i need to set everything up?
When property is transferred through quit claim, even though you will pay the amount, your mother or the grantor may be ineligible for the long term Medicare benefits. The ineligibility will continue for as long as 5 years from the date of transfer of the property.
Welcome Rowboat,
There are tax implications to a quit claim deed. One who quit claims the property has to pay gift tax on the value of the property provided it exceeds $12,000. This is because a transfer of property is regarded as a gift if the money you pay for it is lower than or equal to the fair market value of the property.
There are tax implications to a quit claim deed. One who quit claims the property has to pay gift tax on the value of the property provided it exceeds $12,000. This is because a transfer of property is regarded as a gift if the money you pay for it is lower than or equal to the fair market value of the property.
Getting the property transferred to you may also affect your mother's social security benefits. How much it can affect will depend upon who stays at the property, when and to whom property is transferred and why it has been transferred.
You may consult an attorney for legal suggestions on this issue.
You may consult an attorney for legal suggestions on this issue.
As Adonis said,
"There are tax implications to a quit claim deed. One who quit claims the property has to pay gift tax on the value of the property provided it exceeds $12,000."
Tax implication are there but one only needs to pay gift tax if the lifetime gift tax exemption limit of $1 million is crossed.
Bean
"There are tax implications to a quit claim deed. One who quit claims the property has to pay gift tax on the value of the property provided it exceeds $12,000."
Tax implication are there but one only needs to pay gift tax if the lifetime gift tax exemption limit of $1 million is crossed.
Bean
hey let the owner decide weather she wants to sell it or just give it to any one of you or else tax may be applicable all companies hve diff tax rates