I have a question for you regarding a family home in Kissimmee, Florida. The house has been paid off for several decades, and while it is an older house (built in 1960), because of its size and location, it is still worth about $300,000. My parents are in their 70s and my sister lives with them, acting as their caregiver. I am wondering if my parents should Quit-Deed or Warranty Deed the house to my sister. There is no chance of my sister casting my folks out of their house or selling it out from under them. It has already been agreed by the entire family that my sister will inherit the house because the rest of us own our own homes in other cities, so there is complete unity within the family on this issue.
Four or five years ago, I proposed that my parents Quit-Deed the house to my sister so she could avoid the inheritance tax. They were in good health, so I expected them to live long past the waiting period of 5 or 7 years for Social Security benefits. Besides my Father is a retired combat veteran and receives most of his medical care from the VA and TriCare, not Social Security.
My parents visited a lawyer to have the papers drawn up, but the lawyer talked them out of it, saying they were not in any danger of being hit with a tax. My sister is listed as being their beneficiary on their deed. However I question if this lawyer may have been interested in the well-being of his client, (my parents), without considering the well-being of my sister. This defeats the entire object of protecting the FAMILY from the heavy taxation, not just my parents.
Now my concerns have been renewed with the probability of the Obama Administration reviving the Inheritance Tax. My folks are still in pretty fair shape for their age, and I hope will live for at least an additional 5 to 7 years. I am afraid that my sister, even with the help of her other three siblings, cannot pool enough money to pay a hefty tax on the house, and I am afraid we will lose the property. To sum it up, my questions is “Are my parents or sister in danger of being hit hard by a death tax, and if so how can it be avoided?”
I would appreciate any guidance you might shed on this issue. I searched your website but did not find any articles that specifically addressed the issue of deeds and the death tax.
Four or five years ago, I proposed that my parents Quit-Deed the house to my sister so she could avoid the inheritance tax. They were in good health, so I expected them to live long past the waiting period of 5 or 7 years for Social Security benefits. Besides my Father is a retired combat veteran and receives most of his medical care from the VA and TriCare, not Social Security.
My parents visited a lawyer to have the papers drawn up, but the lawyer talked them out of it, saying they were not in any danger of being hit with a tax. My sister is listed as being their beneficiary on their deed. However I question if this lawyer may have been interested in the well-being of his client, (my parents), without considering the well-being of my sister. This defeats the entire object of protecting the FAMILY from the heavy taxation, not just my parents.
Now my concerns have been renewed with the probability of the Obama Administration reviving the Inheritance Tax. My folks are still in pretty fair shape for their age, and I hope will live for at least an additional 5 to 7 years. I am afraid that my sister, even with the help of her other three siblings, cannot pool enough money to pay a hefty tax on the house, and I am afraid we will lose the property. To sum it up, my questions is “Are my parents or sister in danger of being hit hard by a death tax, and if so how can it be avoided?”
I would appreciate any guidance you might shed on this issue. I searched your website but did not find any articles that specifically addressed the issue of deeds and the death tax.