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    Lindenwood's Avatar
    Lindenwood Posts: 1, Reputation: 1
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    #1

    Aug 14, 2008, 05:03 AM
    Quit Claim deed liability
    My mother is worried that someday she might have to go to a nursing home. She wants to place all of her six kids names on a Quit Claim deed in order to keep the nursing home from taking her house. I want to know if the grantees (her kids) would be charged a gift tax.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #2

    Aug 14, 2008, 06:49 AM
    No, they would not be charged a gift tax, but you mom would be. If the amount that each child gets is over $12K, then there would be gift taxes involved.

    What would be better is to sell the property taking a life estate to the offspring, She can then take a mortgage. She can then forgive $12K per year per child until the mortgage is paid off.
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