What is the name of your state? Vermont
I am 62yrs old, will retire at 67. My wife and I will have about $60,000 a year retirement income indexed to inflation. I am starting to gift $24,000 cash a year to my only child. This money is being invested in Roth IRA, I BONDS and other tax free, differed or exempt investments. These gifts have no effect on retirement income. I have earned my money the hard way; 60hr work weeks over a lifetime, paid for both my wife and child’s college. As a family we have no loans period, have always paid all bills on time. I believe in keeping things as simple and uncomplicated as possible. I am thinking of gifting 100% of home ownership to my child, home value $340,000 verses giving a 95%share of ownership. While we are comfortable I don’t believe we will reach the Two million gift limit. My wife or I would take their name off of deed and my child’s name would be added. My reason for this approach is twofold. To avoid Probate and to protect the home from attachment if one of us had to go into a nursing home. Living in Vermont at my child’s taxable income the property tax would be lower. There is an income producing Apt, taxable income also at a lower rate, while I could still insure the property as joint owner at a lower cost. The other option is an irrevocable trust which I would probably need a lawyer at considerable cost. As you can see I am a penny pincher. What is the simplest, lowest cost method to transfer assets to my child?
I am 62yrs old, will retire at 67. My wife and I will have about $60,000 a year retirement income indexed to inflation. I am starting to gift $24,000 cash a year to my only child. This money is being invested in Roth IRA, I BONDS and other tax free, differed or exempt investments. These gifts have no effect on retirement income. I have earned my money the hard way; 60hr work weeks over a lifetime, paid for both my wife and child’s college. As a family we have no loans period, have always paid all bills on time. I believe in keeping things as simple and uncomplicated as possible. I am thinking of gifting 100% of home ownership to my child, home value $340,000 verses giving a 95%share of ownership. While we are comfortable I don’t believe we will reach the Two million gift limit. My wife or I would take their name off of deed and my child’s name would be added. My reason for this approach is twofold. To avoid Probate and to protect the home from attachment if one of us had to go into a nursing home. Living in Vermont at my child’s taxable income the property tax would be lower. There is an income producing Apt, taxable income also at a lower rate, while I could still insure the property as joint owner at a lower cost. The other option is an irrevocable trust which I would probably need a lawyer at considerable cost. As you can see I am a penny pincher. What is the simplest, lowest cost method to transfer assets to my child?