Joint Quit Claim And Sale Of Property.
My wife and I are on the quit claim deed along with hte mother of my wife. The original mortgage is in my mother in laws name, and my wife does have power of attorney. We have been making the mortgage payments, property tax, and insurance payments on the property since the inception of the mortgage. My mother -in-law was not planning on living for more than a couple of years. We are at the point where we would like to sell the house, and my mother-in-law wants to go into a health facility. Of course having the house with her name on it is a problem for her entry into the facility. Any suggestions on a direction. She wants my wife and I to get the equity in the property without having to deal with a gift tax situation.
Thanks in advance for any help, we are in Utah if that helps.
The good news is that gift taxes probably will not apply. Yes, your MIL will probably have to file a gift tax return, but no actual taxes will be due.
The bad news is that your MIL will probably have to "spend" down her share of the capital gains income from the sale of the property before she can qualify for Medicaid.
What is your business?
House flipping to start......eventually I will hold onto some of then.
John,
Just a quick question with this the bank sends the statement with the orginal homeowers info because of sub-to what do you do after that do you send that on or do you create a new one? Just wondering.
J
Thanks John. I knew there was a reason why I had never asked this because the LSC is handling it. So they must do a new one because if I am getting a bump in the payment it would not match the one from the bank. All the better thanks....