Quote:
Originally Posted by 911Rob
Put one of the siblings on title for the home, NOW.
No one should be on title alone; saves lots of BS in the event of a loss of life. my $.02
Hope your dad recovers full health and can enjoy his remaining years.
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No offense, but your $.02 could cost them a bundle under our tax law. E.g., suppose dad conveys house to self and child as joint tenants w/right of survivorship. Dad dies and home vests in the child/children by operation of law. No need to probate. Simple, right?
But wait a minute. Child takes the house with the donor's basis. Thus if dad paid $100K for the house 30 years ago and the house is now worth $800K, then when the child sells the house he/she would have to pay a capital gains tax on $700K....or about $140K in taxes.
Conversely, if the house passes at dad's demise, the heirs receive it with a "stepped up" basis of the value at the time of dad's death. Sell it the next day and there would be no capital gains tax.
Might wanna stick to selling them, Rob, and leave estate planning to others.
