Legal to give land?

[Cindy T.]

My elderly mother insists that it is *illegal* to give the property (29 acres, house, small lake and 2 outbuildings in Alabama) that she is currently living on to any/all of her children, that it must be sold to the children at a fair market value.

This sounds odd to me. Is this true?

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Cindy T.:
My elderly mother insists that it is *illegal* to give the property (29 acres, house, small lake and 2 outbuildings in Alabama) that she is currently living on to any/all of her children, that it must be sold to the children at a fair market value.

This sounds odd to me. Is this true?<HR></BLOCKQUOTE>

A property owner could legally give away the property as a free gift, exchange it, sell it for a buck, a cool million or any dollar amount in between or simply do nothing and hold it until death.
Since she is the owner and if it is her wishes that the property be sold to the children at fair market value, then so be it.

 

[Cindy T]

Well, no, not really. She would give the land if someone had not told her that it was illegal to do so. Once she gets an idea into her head it's impossible to move it unless I can find something in black and white to show her. It's not important for me, as I've decided I don't want it, and none of my siblings do either, but this is an ongoing argument we've had and I think she's wrong on the matter.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Cindy T:
Well, no, not really. She would give the land if someone had not told her that it was illegal to do so. Once she gets an idea into her head it's impossible to move it unless I can find something in black and white to show her. It's not important for me, as I've decided I don't want it, and none of my siblings do either, but this is an ongoing argument we've had and I think she's wrong on the matter.<HR></BLOCKQUOTE>

Ok different twist to the story. She is wrong and her friendly "someone" source is wrong. Tell her that you have communicated with a real estate attorney with over 30 years experience in real estate. Print out this post in black ink on white paper and have her read it. This constitutes something in black and white to show her.

HomeGuru.

 

[PETER]

Cindy:

Someone will always have to pay taxes on it.

If she gives it away today with living rights till death, then you and your other family members will have to declare it as a gift and pay gift taxes on it....By April 15th 2001.... no excuses..!!!!!

If she sells it to you at market rates, then SHE pays whatever capital gains taxes there are.

We did that to our parents home of $240,000 split 3 ways and the taxes were $27,000 split 3 ways or $9,000 each.....pretty damn reasonable to own 1/3 of a 2 family house dont cha think!

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Cindy T.:
My elderly mother insists that it is *illegal* to give the property (29 acres, house, small lake and 2 outbuildings in Alabama) that she is currently living on to any/all of her children, that it must be sold to the children at a fair market value.

This sounds odd to me. Is this true?<HR></BLOCKQUOTE>