QUESTION
Can I transfer my mom's house into my name without tax penalties?
Asked on Dec 10th, 2012 on Family Law - Pennsylvania
More details to this question:
I am considering buying my mom's house although she is in a nursing home. Dad passed away years ago. If I were to buy it less than value, are any penalties accrued when she passes, that it wasn't sold for full value?
1 ANSWER
There will be tax consequences that you should speak to your accountant about. One thing to keep in mind is that if you are relying on Medicaid to pay for her nursing home care, they will require that it be sold at Fair Market Value and that the money be used to pay for her care in the first instance. Also, if she passes within 5 years of the transfer, it could be considered a fraudulent transfer.
Answered on Dec 11th, 2012 at 9:14 AM