House and Land deeded in different names?

[kalong71]

What is the name of your state? South Carolina

I own land and am thinking of letting my brother build a house on it. I don't want to deed the land to him, because I don't want him to have the option of selling the land as long as we are living. In the state of SC, does the house and land have to be deeded in the same name? If not, how are taxes handled?

[JETX]

Originally Posted by kalong71

I own land and am thinking of letting my brother build a house on it. I don't want to deed the land to him, because I don't want him to have the option of selling the land as long as we are living. In the state of SC, does the house and land have to be deeded in the same name? If not, how are taxes handled?

I doubt that any lender would allow what you are describing.... since it would be impossible to foreclose if needed.
You can provide a long term 'lease' of the specific land to your brother. If you do that, you will retain all insurance obligations and tax benefits.

[seniorjudge]

Originally Posted by kalong71

What is the name of your state? South Carolina

I own land and am thinking of letting my brother build a house on it. I don't want to deed the land to him, because I don't want him to have the option of selling the land as long as we are living. In the state of SC, does the house and land have to be deeded in the same name? If not, how are taxes handled?

A deed transfers real property. Land is real property. A house sitting on land is real property and is covered by the deed that transfers the real property.

What you are wanting is a type of lease.

You must use a real estate attorney to do this. If you try to do this yourself, you could really screw up the title to your real estate.

[kalong71]

My brother will be paying for the house, and he will bebuilding it along with my step-father. There will be no mortgage. My concern is gift tax. If he builds a house on my land, and the house is put in my name, wouldn't we have to pay gift tax?

[seniorjudge]

Originally Posted by kalong71

My brother will be paying for the house, and he will bebuilding it along with my step-father. There will be no mortgage. My concern is gift tax. If he builds a house on my land, and the house is put in my name, wouldn't we have to pay gift tax?

Make sure the real estate attorney you hire to help you in this matter is also an expert in taxes.

You have a complicated situation and it can only be done ONE way: correctly.