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To: Alberta's Child
If you live in a $500,000 home that you intend to leave to your children, your best bet may be to just sell it to them for $25,000 while you're still alive.

First problem is the home is not yours. Children have sold homes or thrown out parents. Second, below market sales among relatives brings in the IRS.

"Internal Revenue Service frequently watches transactions among family members and can step in and levy taxes if something doesn't look right."

https://pocketsense.com/sell-house-child-25510.html

23 posted on 06/17/2021 3:27:20 PM PDT by tlozo
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To: tlozo
Then the parent(s) should sell the house while they're still alive. There's no capital gains tax on the sale of a primary residence.

And if the children are the type who would throw the parents out of the home, then why would the parents leave anything to them anyway?

27 posted on 06/17/2021 3:34:16 PM PDT by Alberta's Child ("And once in a night I dreamed you were there; I canceled my flight from going nowhere.")
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To: tlozo

https://www.medicaidplanningassistance.org/lady-bird-deeds/

Snip...Lady Bird Deed vs. Traditional Life Estate Deed

With both lady bird deeds and traditional life estate deeds, the owner of the property, the life estate holder, also called the grantor or life tenant, maintains possession of his / her home as long as he / she is alive. Upon the death of the homeowner, the life estate ends, and the home is automatically transferred to the beneficiary, also called the grantee, remainderman, or the remainder beneficiary. With a standard life estate deed, the life tenant (the homeowner) no longer has full control over his or her home. For example, the life tenant cannot sell or mortgage his / her home without beneficiary approval. Lady bird deeds differ from traditional life estate deeds in that the life tenant continues to have the right to sell or mortgage his / her home without beneficiary consent. In fact, the life tenant is even able to cancel the deed or change the beneficiary. Stated clearly, the beneficiary will receive the title of the home after the death of the homeowner, but he / she but has no right to the home (or decisions made in regards to the home) as long as the homeowner is alive.”


64 posted on 06/18/2021 5:26:25 PM PDT by Pete from Shawnee Mission ( )
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