Quote:
Originally Posted by SumAznGuy
Not if that is their primary residence.
But there will be heavy taxes if the parents pass away and the house is given to the kids in the will.
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There is some ways around this and I cannot remember the exact details if it was a gift or selling it for a dollar but basically transfer ownership to the kids a reasonable amount of time before you die. My wife went through this with when her mom was terminally ill and the house, bank accounts everything was either made joint or totally transferred to all the kids. They totally avoided any type of taxes or probate once the mother passed and moving money and assets around was seamless. Even the car was put in the kids name.
All the kids owned their own places at the time as well so the mothers house was not the primary residence for any of them. In their case they knew death was coming so preparing for it did help a lot financially.
Edit: One of the details that is coming back to me is if the difference in the value of property is higher at sale then when it was transferred to the kids they would have to pay capital gains on the difference.
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Last edited by quasi; 10-18-2012 at 07:28 PM.
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