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wwadde01 · Sep 3, 2007, 05:39 PM

My father recently passed away and my mother wants to transfer the deed to their house over to me. The house is fully paid off and I was wondering if we did transfer the deed, would there be any financial implications, i.e. would this be considered a gift and if so, what would the tax implications be etc...

:confused:

pacific nw · Sep 8, 2007, 12:54 AM

There could be serious Tax ramifications if not done properly. Firstly, why does your mother want to transfer the house over to you? You have to consider the Cost Basis of when the property was purchased and the current value of the property. A gift is limited to $12,000 non taxable per year unless it is applied to the Life Time Gift Amount. If you wait until your mother passes (since there is no mortgage, a mortgage payment shouldn't be a difficulty for her) there is a new cost basis and little if any tax. Secondly, where would she live? You would have to ask the question: "What is the benefit to HER to transfer Title to you or to anyone? None, that I can see. Even if it is to try to qualify for Medicare/Medicaid and other Senior benefits, I think it is 5 years that they look back on and you get to keep your own residence anyway. If she keeps the house, she can take out a reverse mortgage if her financial needs change. (I think you have to be 62 or older to do a reverse.) Talk to a Tax Accountant to see if the benefits outweigh the liabilities.