Giving property to family - Posted by M. Quan

Posted by Dave T on June 22, 2008 at 18:25:03:

Legally, just execute a deed transferring title from your name to your child’s name.

Tax-wise, it is always better for children to inherit property than to have it gifted to them. If you gift, you have gift tax issues, and, your child has capital gains to pay when the property is sold.

Consider putting the property into a revocable trust with your child as the alternate beneficiary. Let your child “rent” the property from your trust on a triple net lease for some outrageously low annual rent (maybe $1 per year). Your child can choose to live in the property or use the property for rental income – in other words enjoy all the rights of occupancy and use while waiting to inherit. Consult your attorney and tax advisor for specific guidance.

Giving property to family - Posted by M. Quan

Posted by M. Quan on June 22, 2008 at 17:26:14:

I wish to “give” a rental property to one of my children, ie. let him have it with no preconditions, and cost. What is the best way to do this, legally and being tax-wise ?