Need Advise For Property Inheritance
My mother was recently diagnosed with terminal cancer. She has her personal home in Arkansas that she wants to cash out equity and let me use it to invest to help pay her medical expenses. She does not want her home or estate to go through probate after her death. My question is how should I treat the equity she cashes out so that it is not subject to probate and to minimize taxation? Shoud she go ahead and quit claim the property to me and then I can cash out refi? Or should she show the money as a gift to me (then it would be subject to a gift tax)? Any other suggestions would help!
thanks
I am sorry to hear about your mom. I wish you and your mom all the best.
The advice to consult an elder care attorney is very sound advice. The money will be well spent to save hours of headaches later. If you select a larger firm they will also have access to tax and estate planning attorneys so that they can take a look at this issue from all sides.
Does your mother wish to sell her property? She may also want to look into a Section 121 Exclusion where she can sell her property and exclude from income up to $250K in capital gains if single and up to $500K if married - tax free.
However, I would not do anything until the legal counsel looks at the over all big picture to make sure that you have a good solid long-term plan.
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