QUESTION
Should I transfer title of house to them now or would it be a mistake to do so?
Asked on May 25th, 2013 on Estate Planning - Hawaii
More details to this question:
Have simple will leaving everything to daughters equally. My house is paid up and in my name. I am a widow of 83 years old. On other assets, they are either beneficiaries or TOD designation.
21 ANSWERS
You could create a deed giving yourself a life estate, then giving the house to your daughters.
Answered on May 28th, 2013 at 12:01 PM
Commercial Contracts Attorney serving Boise, ID
at
Peters Law, PLLC
Update Your Profile
Perhaps what you should do is deed the property to them, keeping a life estate in yourself. However, if they ever get into a fight, it could make life a little difficult. Plus, what assets are they going to use to pay your estate's debts? Why don't you talk this over with your attorney just to make sure.
Answered on May 28th, 2013 at 11:09 AM
Estate Planning Attorney serving Wilmington, DE
at
Reger Rizzo & Darnall, LLP
Update Your Profile
You will lose tax reduction on taxes and if there were a dispute it could negatively affect you. Also, if you need utilize medicaid for nursing home care, they would consider any assets transferred within the last 5 years.
Answered on May 28th, 2013 at 11:02 AM
Litigation Attorney serving St. Louis, MO
at
Probate Law Center Richard J. Keyes, PC
Update Your Profile
In Missouri, you can do a beneficiary deed on the house. The beneficiary deed has the house going to your daughters upon your death. It must be recorded prior to your death. If you wish to sell the house, you do not need the consents of your daughters. If you change your mind and want to make only one daughter or not all daughters beneficiaries, you can do a new deed without the daughters' consents. Your daughters also get the stepped up basis in the property for tax purposes. See an attorney for the preparation of the deed. Be sure to bring in the legal description of the property for the preparation of the deed.
Answered on May 28th, 2013 at 10:26 AM
Estate Planning Attorney serving Torrance, CA
at
The Law Office of Kelvin Green
Update Your Profile
If you want to avoid probate, you should establish something now. See an estate planning attorney for advice
Answered on May 28th, 2013 at 10:25 AM
I would suggest leaving the house in your name for the time being. While it is admirable that you want to leave your daughters an inheritance, it is possible that you will continue in good health for many more years and choose to stay in your own home. You may also decide to or need to sell the house to cover unexpected expenses of your own, of a daughter. or of a grandchild.
Answered on May 28th, 2013 at 10:25 AM
3 Awards
No. It is generally not a good idea to that. You may wish to name them as Tenants in Common in a pay on death deed under Nevada law. I suggest you speak with an attorney about the specifics.
Answered on May 27th, 2013 at 10:25 PM
Business Planning Attorney serving Livonia, MI
at
Frederick & Frederick Attorneys at Law
Update Your Profile
There are better ways to handle this. I would suggest that you see an estate planning lawyer to determine how best to proceed in your case.
Answered on May 27th, 2013 at 10:18 PM
Taxation Law Attorney serving Glendale, CA
at
Irsfeld, Irsfeld & Younger LLP
Update Your Profile
Read King Lear. Don't give it to them now.
Answered on May 27th, 2013 at 10:05 PM
2 Awards
There are tax consequences to a lifetime transfer. There is a tax exclusion if it is transferred at death. The benefit to a lifetime transfer would be medical planning. Speak with an estate planning attorney to discuss your circumstances and figure out what is best for you.
Answered on May 27th, 2013 at 9:46 PM
Probate Attorney serving Palatine, IL
at
Law Offices of Robert H. Glorch
Update Your Profile
That would almost certainly be a mistake. Talk to an estate planning attorney. Ask about a living trusts and transfer on death instruments (TODI).
Answered on May 27th, 2013 at 9:44 PM
2 Awards
The answer depends on how much you paid for the house and what it's worth now. If the house has increased dramatically in value, then it's better to just leave it in your will. If the house has not increased in value, you can transfer it now, or use a ladybird deed (enhanced life estate) to have the transfer automatically occur upon your death.
Answered on May 27th, 2013 at 9:32 PM
Probate Attorney serving New Orleans, LA
at
James G. Maguire
Update Your Profile
The problems with transferring the title while you are still living are: 1. You would lose the homestead exemption, since you would no longer be the owner. 2. If any of your children got into financial problems (bankruptcy, a lawsuit, divorce) the house could be lost. Probably better to just to leave it in your name.
Answered on May 27th, 2013 at 9:29 PM
Transferring title is not recommended because you lose control of your own property and subject your property to their creditors. There are safer methods of avoiding probate if that is your goal. You should consult an estate planning attorney to advise you.
Answered on May 27th, 2013 at 9:29 PM
The problem with this strategy is capital gains tax. You lose the at death step up in basis which can be huge. Often paying for a living trust now can return huge dollars to your daughters by creating the step up in basis needed to avoid cap gains tax. Consult with an experienced estate planning attorney.
Answered on May 27th, 2013 at 9:22 PM
Probate Attorney serving St. Louis, MO
at
Edward L. Armstrong, P.C.
Update Your Profile
You don't need to transfer your home to your children now. What you can do is have a Beneficiary Deed prepared which will give the house to your daughters only on your death if you haven't sold it by that time. This deed needs to be recorded with the Recorder of Deeds for the county in which your home is located. This allows you to keep total ownership in yourself until you die - works much like a TOD or POD account.
Answered on May 27th, 2013 at 9:19 PM
Bankruptcy Attorney serving Henderson, NV
at
Jeffrey A. Cogan Chartered, a PLLC
Update Your Profile
You can. You can make it joint tenancy with the daughters or you can give it to them and keep a life estate for yourself. This is only if you don't want a living trust. Make sure that you do it correctly or your daughters could have to pay a lot in either gift taxes or income tax when you well it.
Answered on May 27th, 2013 at 9:18 PM
Sanford M. Martin
The proper decision depends on factors involving your estate and the effect of such transfer on the beneficiaries. Many persons in your situation transfer ownership of real property and may reserve a life estate which permits them to reside at the home until they move out, give it up, or die. Such action benefits estate administration by enabling one to avoid probate based on the residence. So you may want to consider the transfer if it will enable you to avoid probate. If the beneficiaries are agreeable to it, it can be a good decision. May this information based on the facts of your inquiry help you.
Answered on May 27th, 2013 at 9:17 PM
Business Law Attorney serving Livonia, MI
at
Gerald A. Bagazinski
Update Your Profile
i would consider a trust. You are reluctant and with good reason to put their name on your property. You could alternatively do a ladybird deed on the property. I would talk to an attorney.
Answered on May 27th, 2013 at 8:57 PM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
Yes, transfer house now, by executing a grant deed to them as joint tenants, which as the right of survivorship in the event one of them dies, their half would go to the other person.
Answered on May 27th, 2013 at 8:47 PM
Real Estate Attorney serving Honolulu, HI
at
Zahaby Law Offices
Update Your Profile
Generally, yes, widowed or unmarried individuals should transfer assets to trust in order to avoid Probate of Will. Some factors may change my answer such as Medicaid planning, etc.
Answered on May 27th, 2013 at 8:46 PM