QUESTION

I quit claimed a paid property to my friend, what fees and taxes am I supposed to still pay?

Asked on Feb 09th, 2015 on Estate Planning - Washington
More details to this question:
I quit claimed my home (property) to my best friend. We went to the court house and had it recorded and witnessed and paid $74.00. Her brother came by last night and said we will owe a lot of taxes and fees,etc. by doing this. The home was paid in full in 1978 by my grandparents, and then I inherited the home through my deceased mother. My question is, what will happen to us? According to the paperwork I'm still listed as the one to pay the property taxes and insurance, which I would do anyway. What more will we need to pay? I've actually "gifted" her my home but still live here and will live here until I die. What else will we need to pay now having changing names on the house title? I was only innocently wanting to go ahead and have her own my home before my death. I have made calls to find out any details on this matter, only that the house is in my friend's name, and that I'm to pay the property taxes. Help! Her brother scared us to death as we have never heard any of this he was telling us before. I went to my lawyer 2 years ago to have a will made. I went ahead and took the quit claim papers to the court house to have it recorded and to "gift" my home to my friend before my death, so she would feel it was her home too. Have I done something wrong to where we will owe all her brother says we will? Help me please. Simple question: will we have to pay all the taxes and fees her brother said we will?
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1 ANSWER

Thomas Edward Gates
Since I do not know what her brother has said, I will not answer that question. An individual is permitted to gift $14,000 per year to any other individual. Anything over that amount is taxed. So, the value of the house minus $14,000 is the amount you will have to pay taxes on. The tax is due to the IRS and the county that you live. Beside recording the Quit Claim Deed, you are required to file an Excise Tax Affidavit with the auditor. Once filed, the house will be in her name for property tax payment. You need to see an Estate Planning attorney to help you. If you had waited until your death to make the transfer, it would have been tax free to the beneficiary.
Answered on Feb 11th, 2015 at 3:25 AM

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