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State laws on property title and on marital property rights vary widely enough, most advice other than "Get qualified legal counsel" is likely only to confuse the issue.
You are looking for legal counsel on title, and marital rights and possibly a prenup should marriage enter the conversation.
Especially true if Son is moving to a state where Tenancy by the Entirety is typical.
I’m 75 years old and have a son. He is buying a rural property in another State and I am going to provide the funds for that purchase. This will not impact my personal financial stability and he would inherit these funds anyway upon my death. This is a special property. It belonged to his paternal great grandparents, who built the homestead. His grandmother sold the property when she was in a period of financial hardship to the present owners, who lived there 20 years and are now selling.
My son is 48 years old, divorced and father to my grandchild. He intends to move there within the next 2 years with his lovely girlfriend, who I like very much.
I’m seeking input on how to title the property. As much as I am delighted my son has found “the love of his life” I also want to consider the possibility and impact of scenarios where the relationship fails or that my son could lose his life prematurely.
Title the property in his and my names jointly? Title the property as me as lienholder? Other ideas?
Yes, I will discuss with a Real Estate Attorney.
If it's a gift... then attach no strings. However if you want ONLY your son to benefit from your generosity, then it's conditional.... and the conditions today (GF) might become a wife tomorrow, who may become a divorcee. So think ahead.
Have you talked to your accountant about the taxes? I'd go there first. Attorney's are not problem solvers by nature... they're great at finding problems, not solving them.
What about a trust?
I prefer gifting... so I'm not involved in any way. However protecting your son is also important. Let us know how it all goes.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Originally Posted by clevergirl67
It's a gift so it should be in his name alone. Suggest to your son that he have a will where he will leave the property to a member of the paternal family upon his death.
I agree, if as you said you are "giving son money to buy a house" then just give him the money, and he will title it however he wants.
Not a tax expert.. but I am guessing there may be some "significant" tax implications for your son if he is gifted that much money all at one time. Not at all sure because I think the son could get the same money in inheritance tax free. I think you should also add in professional advice on tax's to all the ownership detail.
Not a tax expert.. but I am guessing there may be some "significant" tax implications for your son if he is gifted that much money all at one time. Not at all sure because I think the son could get the same money in inheritance tax free. I think you should also add in professional advice on tax's to all the ownership detail.
We will file the appropriate IRS tax form (can’t remember the form number) and it will be applied to his $12M non taxable/exempt gift allowance. Have discussed this with a CPA.
We once bought a home on a small lake with three other homes. One owned by the couple who bought the lake and the original land, and the other three owned by buyers who bought after each of their sons sold as a result of a divorce.
You would be wise to speak with an estate attorney on how to set this up.
I meant MILLION. Here’s an explanation for you. Lifetime limit tax exempt is $13.1M. You can give gifts non-taxable up to $18K annually OR you can give any amount tax free by filing a form 709 which will allow the IRS to track the gift giving and only tax you when your lifetime gift giving exceeds $13M.
We will file the appropriate IRS tax form (can’t remember the form number) and it will be applied to his $12M non taxable/exempt gift allowance. Have discussed this with a CPA.
That would be YOUR allowance, not HIS.
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