Leave in will/ or transfer before death

What is the name of your state? NJ
My father is terminally ill and has been givin another month or two to live. His intentions are to leave all his assets (house,savings, stocks) to myself. Would it be advisable to transfer all his belongs over to me before his death to avoid capitol gains tax? Would there be any complications in him doing this? Please advise.. Thanks in advance

This is important! Maybe someone else can chime in, also. WAIT UNTIL AFTER DEATH. the basis (for the assets) will be adjusted to what the value is at the time of death. There will be no capital gains tax if he waits. You (he) could/should make the savings accounts titled POD (pay on death) accounts so they would pass to you directly and immediately following his passing (and outside of a will and probate). Talk to the bank about this.

You should talk to an estate planner.

Their are potential advantages and disadvantages either way.

ALSO you need to look at end of life costs.

You may also want to consider posting this on the tax law message board.

xylene said:

You should talk to an estate planner.

Their are potential advantages and disadvantages either way.

ALSO you need to look at end of life costs.

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If referring to end of life costs as being funeral expenses, I did speak w/ a funeral home yesterday, for the service I am planning it will run around 5k.
I think I used the wrong term as far as Capitol gains tax when it comes to the house, I guess I should have said Inheritance tax. Also with the bank acct's I am under the assumption that I should put my name on his acct and have the POD added to the wording on the acct. ( I'm not trying to answer my own question here, I just think I used the wrong wording on the first post).
Other question is, would it be advisable to cash in any stocks now and put it into the savings acct? Any ideas? Thanks for your input, it is much appreciated!! Best to all!!

It all depends on the value and his current tax situation. Only a tax attorney or someone that specializes in estates can tell you the best route. Normally for real estate it is better to wait until after death. It is probably not a good idea to cash in the stocks now.

From a tax standpoint, you shouldn't sell the stocks now. That should wait until after death. The basis will be adjusted at time of death. Depending on the stocks (whether or not they have appreciated in value) they should be held until after death if the stocks have capital gains.

myserenity71 said:

....I think I used the wrong term as far as Capitol gains tax when it comes to the house, I guess I should have said Inheritance tax.

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At this point, it really will not make a difference from an estate/inheritance tax standpoint. Changing (gifting) ownership at this point is not going to get the assets out of the way of estate/inheritance taxes.

For the Jersey Transfer Inheritance Tax you are a Class A beneficiary. Transfers to Class A beneficiaries are exempt from the Transfer Inheritance Tax.

Ok, another question, since u guys have been so helpful. Credit Card debt... not that there is alot of it, but.. after his passing will his CC's have to be paid off in full or can I continue to make monthy payments on them? Sorry for all the questions, I'm just trying to get an idea where I stand and what bills I should have him pay off asap. Time is of the essence, because there's not left. Thanks All

You need to be making phone calls to these people now (before death). After death, you can't go back to would/should/could. Call the bank involved and ask the pertinent questions. A five minute (change that, you'll probably be on hold for more than five minutes) phone call will answer your question. Good question, but the bank needs to answer it. Get a name and date for everyone you talk with on everything concerning this situation. Keep a log.

Thanks to all for your reply's and advice, I am sorry to ask so many questions. My father isn't aware at this point that his treatment (chemo for pancreatic cancer) is not working and that the Dr see's no reason to continue to the chemo and make him sicker than he already is. Tomorrow I am going to break this news to him, and after I give him a few days to come to terms with the situation, I will then have to sit with him and see exactly what's owed to whom and if he has any life insurance policies ect. He has always kept his affairs in order and credit ect down to a minimum so I am hoping that there will not be too much to deal with after everything is over with. I am just trying to look ahead so I have some direction to go on right from the start. Thanks again to all of u for all ur advice!

This is important. Be a good listener for your father. Give him a chance to tell you all of the things that haven't been previously said. This will be his last chance to say very important things for the both of you.