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Old 08-24-2019, 09:48 AM
 
64 posts, read 11,413 times
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Another thing to consider is the tax implications on your adult children. It may be wise to instead purchase a new electric vehicle or something in place of having those funds in an account. Or anything we might think our children can re-sell to hold it's value or utilize for themselves.
Might be prudent to give much of your funds to your kids slowly as you get up in years



A financial planner is a great person to visit as we age to ensure we do what we can to limit these tax obligations to our adult children after we pass.
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Old 08-24-2019, 09:59 AM
mlb
 
Location: North Monterey County
3,302 posts, read 2,918,245 times
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Never put a 401k in a trust. That is the best advice we got. That way the beneficiaries can handle the taxes on their own time rather than when the trust distributes...or if it’s POD.

We handled 40k in taxable inheritance by offsetting it with tax credits (purchased an e-car) and came out ahead.
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Old 08-24-2019, 11:45 AM
 
8,019 posts, read 3,539,488 times
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Wills and all of that are very expensive. My son wanted me to put the house in a trust. Not unless he pays for it. He can pay his taxes just like anyone else. I知 on a fixed income. No money for all that. He makes over 100K a year. I知 not worried about a thing. He is the only son. I told him if he doesn稚 want the house I値l find a good charity to donate it to. He changed his attitude after that.
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Old 08-24-2019, 12:26 PM
 
64 posts, read 11,413 times
Reputation: 66
Quote:
Originally Posted by Tominftl View Post
Wills and all of that are very expensive. My son wanted me to put the house in a trust. Not unless he pays for it. He can pay his taxes just like anyone else. I知 on a fixed income. No money for all that. He makes over 100K a year. I知 not worried about a thing. He is the only son. I told him if he doesn稚 want the house I値l find a good charity to donate it to. He changed his attitude after that.
good for you
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Old 08-24-2019, 12:41 PM
 
73,038 posts, read 72,838,664 times
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Quote:
Originally Posted by Tominftl View Post
Wills and all of that are very expensive. My son wanted me to put the house in a trust. Not unless he pays for it. He can pay his taxes just like anyone else. I知 on a fixed income. No money for all that. He makes over 100K a year. I知 not worried about a thing. He is the only son. I told him if he doesn稚 want the house I値l find a good charity to donate it to. He changed his attitude after that.
the trust has nothing to do with taxes in this case
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Old 08-24-2019, 04:28 PM
 
Location: Rust'n in Tustin
2,406 posts, read 2,499,105 times
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Quote:
Originally Posted by SaraR. View Post

When real property is involved, to add your adult child onto the deed during your life is best imho. This works for a somewhat modest homestead.

.
Ha, ha, until he or she gets divorced, or worse kills someone in a car accident. Then guess who's name is on the deed?
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Old 08-24-2019, 05:10 PM
 
Location: SoCal
13,908 posts, read 6,646,116 times
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You add your adult child or children to your deed, you don’t get a step up value either. You need to think about tax.
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Old 08-24-2019, 05:12 PM
 
73,038 posts, read 72,838,664 times
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Adding your kids to a deed unless it is a form of transfer on death is a bad idea for many reasons.

Loss of a stepped up basis , exposure to law suits ,divorce battles and host of other negatives are reason enough not to do it .

Plus if Medicaid is needed the look back is five years and you took a protected asset and unprotected a portion of it ...now it has to be spent down to qualifyvor be penalized time wise before Medicaid pays.

Just a poor idea all around
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Old 08-24-2019, 06:35 PM
 
64 posts, read 11,413 times
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Quote:
Originally Posted by mathjak107 View Post
Adding your kids to a deed unless it is a form of transfer on death is a bad idea for many reasons.

Loss of a stepped up basis , exposure to law suits ,divorce battles and host of other negatives are reason enough not to do it .

Plus if Medicaid is needed the look back is five years and you took a protected asset and unprotected a portion of it ...now it has to be spent down to qualifyvor be penalized time wise before Medicaid pays.

Just a poor idea all around
It might be a poor idea for some. It's the easiest solution for us.We are not ready to add our sons name until one of us passes away. We still have time.

We have protections in our state for Medicaid not to remove our home. Everyone needs to familiarize themselves with their State laws and how or if, it applies to them. There are exemptions. They can take the bank account so part of our assets are in the form of cash money
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Old 08-24-2019, 07:09 PM
 
Location: Rust'n in Tustin
2,406 posts, read 2,499,105 times
Reputation: 4580
Quote:
Originally Posted by SaraR. View Post
It might be a poor idea for some. It's the easiest solution for us.We are not ready to add our sons name until one of us passes away. We still have time.

We have protections in our state for Medicaid not to remove our home. Everyone needs to familiarize themselves with their State laws and how or if, it applies to them. There are exemptions. They can take the bank account so part of our assets are in the form of cash money
What's keeping you from getting a will? Price? Bad juju?
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