Estate Law

[empire]

What is the name of your state? New Jersey.
Hi,

Two issue's:
1)
Father passed away many years ago(over 10).
Mothers name is on the deed with dad.
Mother would like to have "Joint Tenancy w/right of Survivorship" with her child(the caretaker).
Will their be any captal gains tax on child when mother dies? Will property be "stepped up" to market value?
2)
Is their a way for mother to pass/transfer IRA monies(approx. 50K) to child and avoiding the significant tax on IRA withdrawel? She may have to be on Medicaid in a few years and the money would be required for her but, held in someone else's name.

regards

 

[seniorjudge]

I am NOT a tax attorney, but I know the answer to your question.

You MUST see a good estate planning attorney to do what you want to do. The attorney must know the tax laws too.

 

[Snipes5]

1) Yes, there will be capital gains. This is NOT a good way to transfer property. There will be no step up in basis if it is done this way. It is a gift and the child will simply have the parent's original basis.

2) No, she can't do that.

Seniorjudge is right. If mom has that much money stashed away, spend a couple hundred for a good estate planning attorney.

Snipes

 

[empire]

estate law

state is n.j.

this is odd, the accountant said that the property would be stepped up. What do you think?

 

[seniorjudge]

Q: this is odd, the accountant said that the property would be stepped up.

A: On what basis?

 

[empire]

estate law

Yes, he said it would be stepped up. I don't know the basis, I will ask again, I was too happy to hear some good news. At minimum, I was personally under the impression that the property would be looked at as half each. On mothers death her half would be stepped up while the daughter would pay capital gains on her half if/when she sold the property.

empire