Deeds 4 Dollars

My wife and myself are in the 80th. We want all acts of our home-paid to any of our son? Can we just act for him and his wife? Any implications involved? The property is valued between 3-4 hundred thousand dollars, about fifty years .. old woman

Yes you can, but I invite you to see a tax adviser and a former prosecutor law before doing so.

If you give your house to your son, you can give your base cost for the property. Since you have owned for 50 years, I guess you have paid less than $ 25,000 for the house. If, on the future of your son sold his house for $ 375,000, your son is capital gains on the difference between the cost base and selling price. In other words, he will owe 15% of the gain of $ 350,000 or $ 52,500. With inheritance is a "stepped base," which means that the cost base of the heirs is the value of assets at the date of death of the benefactor. If the son inherits the house $ 375,000 and sells it for $ 375,000 so he does not tax capital gain because there is no gain.

If your goal is to save on probate fees (which are set by California law), you should consider a revocable trust or Living Trust. Given the value of your house for $ 400K and other assets of $ 100K for a total value of $ 500,000 estate, your estate would cost $ 13,000. A trust will not cost more than $ 5,000 and it would be a very complicated area. Having a trusted completely avoids inheritance and ensures a rapid and orderly transfer of the estate to the heir.

If your goal is to avoid paying health care for yourself and Medicare and pay for your medical care by transferring your assets so that you are poor and can not pay you, be aware that A month ago 60 (5 years) look back period by Medicare and medical care. This means that if you transfer assets while you are not eligible to receive medical assistance or Medicare for five years from the date of transfer.

Basically, it is almost always preferable to inherit than to receive an asset as a gift. It is also almost always preferable to use a trust to transfer assets to your heirs to go through the delays and costs of probate. If you get a trust for you by an attorney, it will save your spouse, your estate, your heirs, and possibly tens of thousands in unnecessary taxes and fees. It will cost you thousands, but in the long term, it is much cheaper.

OK, yes, you can act with thy son and wife.

Complications only apply the law of insurance and taxes.

The disadvantages of giving the house for them now are the following:
1.) If you fall into a nursing home soon, which could be treated as a fraudulent transfer and disqualify you have Medicare pay for nursing home. (This is a very complex area of law you really need to hire an attorney in California to understand).
2.) If you give them the property, and they sell, they need the income tax on it based on its value since the date you purchased increasein. If they inherit, they get a step "in the database" so they do income tax on its increase in value since the date of your death.

Of course, the advantage of giving is when you get to go to years and years nursing home on the road, the nursing home may not hit home.

You can consult a lawyer about this. Maybe a lawyer planning Medicare.


California law is found at:
http://www.leginfo.ca.gov/calaw.html