How to reduce ownershp in a house.

[TNCPUPZlazy]

What is the name of your state? Montana. Hello. My 2 siblings and I inherited equal shares of a house. There is no mortgage on the house. My sister and I both want to give our portion of the house to our brother. We have each put some money in to repairs, etc., and would want to be reimbursed for that. My brother cannot afford to do that without selling the house. It was pointed out to me that if we just quit claimed our portion of the house over to him, and something happened to him before he sold the house, medicaid could possibly take all the proceeds and we would be out of luck, but the state can't deprive us of our property. My thought was we could sign over (sell for $1) all but a percentage of the house that's approximately equal to what we put into it at the minimum expected sale price. (For example my sister put in about $2800, so if we expect the house to sell for at least $300K, she would sign over 32.33% and retain 1%.) My questions are: 1) Can we do this DIY with a simple quit claim? Or do we need to do some other kind of deed? 2) Is there some other paperwork you would recommend we should file along with it? (Montana seems to like its paperwork and hoops to jump through.) 3) Can anybody see any legal problems, etc. that might come from this? Thank you very much for your advice!

 

[Taxing Matters]

You can do it yourself if you have the knowledge and skill required to do so. If you don't, I'd recommend you consult a property law attorney for help. A quit claim deed would transfer the rights stated in the deed to your brother, but not all quit claims are "simple". This is one that does not fall into the ordinary basket of quit claims in that most quit claims give up all the transferor's interest in the property. Those quit claim deeds are more straightforward than this because you'll need to very accurately state exactly what portion of your rights in the property are being transferred. If you don't do it right you may not get the desired result. It should not cost a huge amount for a property lawyer to draft the quit claim deed for you. Whether you have a lawyer do it or you do it yourself, there are two things you'll want to consider before you do it.

First you and your brother will want to be sure that doing this will not affect his government benefits.

Second, the transfer will be a gift for federal gift tax purposes. The gift tax is paid by the donor (you) rather than the donee (your brother). You have to give away over $12.9 million of gifts exceeding the annual exclusion amount during your lifetime to be subject to the tax, and this amount increases each year due to inflation. But unless the 2017 tax bill that substantially increased the unified credit is extended or made permanent the lifetime unified credit will go back down to what it had been before. Assuming that you wouldn't end up having made gifts over your lifetime that, along this gift, would put you over the credit amount you would not have to pay any gift tax. But if the total amount of gifts made to ALL donees during the year totals more than the annual gift tax exemption amount ($17,000 for 2023 and this too increases periodically with inflation) you would be required to file federal gift tax return (Form 709) to account for the reduction in your unified credit. Any amount of credit still left when you die will be available to your estate to apply against the federal estate tax. So even though you likely won't be close to having to pay the gift tax as a result of these, you don't want to forget to file the return reporting the gift tax. There are several benefits to that. One of the most important is that 3 years after you file the return the value of the gift you gave is locked in at the value you put on the return if the IRS does not audit the return to change the valuation. That avoids fights with the IRS later on about the valuation of the gift.

 

[zddoodah]

My 2 siblings and I inherited equal shares of a house.

In other words, title to the house states in "Your Name, Sibling1's Name, and Sibling2's Name" - either as joint tenants or tenants in common. Correct?

My sister and I both want to give our portion of the house to our brother. We have each put some money in to repairs, etc., and would want to be reimbursed for that. My brother cannot afford to do that without selling the house.

Does your brother want to sell the house? Or does he want to keep it? Why is your brother unable to afford to pay you (especially if your number is similar to your sister's number)?

It was pointed out to me that if we just quit claimed our portion of the house over to him, and something happened to him before he sold the house, medicaid could possibly take all the proceeds and we would be out of luck, but the state can't deprive us of our property.

Pointed out by whom? What does "something happened" mean? Why does whoever told you this think "medicaid" would be in any way involved in your situation?

My thought was we could sign over (sell for $1) all but a percentage of the house that's approximately equal to what we put into it at the minimum expected sale price.

I'm at a loss to understand what you think you'd accomplish here.

Can we do this DIY with a simple quit claim?

A quitclaim deed is simply a means of transferring title without warranties. It has nothing to do with the consideration paid for the transfer. You can google for more info.

You want two things: (1) to give your interest in the house to your brother; and (2) to be reimbursed for whatever money you have spent upgrading or maintaining the house. You apparently do not want anything else in exchange for your interest in the home. However, your brother is unable to pay what you want. Here are some options:

1. Maintain the status quo.

2. Give your interest to your brother and don't worry about reimbursement.

3. Convince your brother to sell and take your reimbursement from the sale proceeds.

4. Give your interest to your and, concurrently, have your brother take a loan against the property so that you get reimbursed.

5. Give your interest to your brother but obtain and record a deed of trust and promissory note to secure your right to reimbursement.

There are other options, and I suggest you confer with a local attorney about what option is best for you.

 

[quincy]

What is the name of your state? Montana. Hello. My 2 siblings and I inherited equal shares of a house. There is no mortgage on the house. My sister and I both want to give our portion of the house to our brother. We have each put some money in to repairs, etc., and would want to be reimbursed for that. My brother cannot afford to do that without selling the house. It was pointed out to me that if we just quit claimed our portion of the house over to him, and something happened to him before he sold the house, medicaid could possibly take all the proceeds and we would be out of luck, but the state can't deprive us of our property. My thought was we could sign over (sell for $1) all but a percentage of the house that's approximately equal to what we put into it at the minimum expected sale price. (For example my sister put in about $2800, so if we expect the house to sell for at least $300K, she would sign over 32.33% and retain 1%.) My questions are: 1) Can we do this DIY with a simple quit claim? Or do we need to do some other kind of deed? 2) Is there some other paperwork you would recommend we should file along with it? (Montana seems to like its paperwork and hoops to jump through.) 3) Can anybody see any legal problems, etc. that might come from this? Thank you very much for your advice!

Why do you and your sister want to give to your brother your interests in the house?

 

[TNCPUPZlazy]

You can do it yourself if you have the knowledge and skill required to do so. If you don't, I'd recommend you consult a property law attorney for help. A quit claim deed would transfer the rights stated in the deed to your brother, but not all quit claims are "simple". This is one that does not fall into the ordinary basket of quit claims in that most quit claims give up all the transferor's interest in the property. Those quit claim deeds are more straightforward than this because you'll need to very accurately state exactly what portion of your rights in the property are being transferred. If you don't do it right you may not get the desired result. It should not cost a huge amount for a property lawyer to draft the quit claim deed for you. Whether you have a lawyer do it or you do it yourself, there are two things you'll want to consider before you do it.

First you and your brother will want to be sure that doing this will not affect his government benefits.

Second, the transfer will be a gift for federal gift tax purposes. The gift tax is paid by the donor (you) rather than the donee (your brother). You have to give away over $12.9 million of gifts exceeding the annual exclusion amount during your lifetime to be subject to the tax, and this amount increases each year due to inflation. But unless the 2017 tax bill that substantially increased the unified credit is extended or made permanent the lifetime unified credit will go back down to what it had been before. Assuming that you wouldn't end up having made gifts over your lifetime that, along this gift, would put you over the credit amount you would not have to pay any gift tax. But if the total amount of gifts made to ALL donees during the year totals more than the annual gift tax exemption amount ($17,000 for 2023 and this too increases periodically with inflation) you would be required to file federal gift tax return (Form 709) to account for the reduction in your unified credit. Any amount of credit still left when you die will be available to your estate to apply against the federal estate tax. So even though you likely won't be close to having to pay the gift tax as a result of these, you don't want to forget to file the return reporting the gift tax. There are several benefits to that. One of the most important is that 3 years after you file the return the value of the gift you gave is locked in at the value you put on the return if the IRS does not audit the return to change the valuation. That avoids fights with the IRS later on about the valuation of the gift.

Thank you for your reply. I hadn't considered the gift tax or the affect it might have on his medicaid, so I've been doing some research. If I understand you (and what I read) correctly, my sister and I wouldn't owe any taxes as the gift combined with others, would not exceed 12.9 million o (or 5 million) over our lifetimes. My concern for him was the only thing I could find out about medicaid eligibility was something aboout capital gains exceeding $150K. I will talk to a financial advisor. Thank you again

 

[TNCPUPZlazy]

Why do you and your sister want to give to your brother your interests in the house?

Hi. We strongly feel it should be his house. He stayed and helped pay off the second mortgage and took care of both parents (there) before they died. My mother payed my sister's mortgage for years, so she bought her a house. I don't want the complications of owning a house in 2 different states. Had I been able to get there before my mother's stroke, I would have seen to it that she voided the beneficiary deed and left it to him. He wants to continue living there, but may at some point grow tired of or be unable to keep it up.

 

[TNCPUPZlazy]

In other words, title to the house states in "Your Name, Sibling1's Name, and Sibling2's Name" - either as joint tenants or tenants in common. Correct?




Does your brother want to sell the house? Or does he want to keep it? Why is your brother unable to afford to pay you (especially if your number is similar to your sister's number)?




Pointed out by whom? What does "something happened" mean? Why does whoever told you this think "medicaid" would be in any way involved in your situation?




I'm at a loss to understand what you think you'd accomplish here.




A quitclaim deed is simply a means of transferring title without warranties. It has nothing to do with the consideration paid for the transfer. You can google for more info.

You want two things: (1) to give your interest in the house to your brother; and (2) to be reimbursed for whatever money you have spent upgrading or maintaining the house. You apparently do not want anything else in exchange for your interest in the home. However, your brother is unable to pay what you want. Here are some options:

1. Maintain the status quo.

2. Give your interest to your brother and don't worry about reimbursement.

3. Convince your brother to sell and take your reimbursement from the sale proceeds.

4. Give your interest to your and, concurrently, have your brother take a loan against the property so that you get reimbursed.

5. Give your interest to your brother but obtain and record a deed of trust and promissory note to secure your right to reimbursement

There are other options, and I suggest you confer with a local attorney about what option is best for you.

Hello. Yes. We are joint tenants. He wants to continue to live there, but may grow tired of maintaining such a large house and lot. My brother is currently unemployed, thus the medicaid and the financial difficulties. The house will need some repairs to be saleable and be more livable. In seven months I will be able to help with that, so the amount I put in will be more like $15-20K. The worry my financial advisor had was if he were to have a stroke and be put in a care facility. I had considered option 1 and do the transfer just before a voluntary sale, but was thinking to accomplish something more like option 5. Thank you very much, that was what I was looking for.

 

[Shaheena Hemraj]

In Montana, transferring property among siblings involves legal considerations:

1. Deed Type: While a quitclaim deed could transfer ownership, it's essential to consider a warranty deed or a special warranty deed to safeguard interests and liabilities. Consulting a real estate attorney for the appropriate deed is advisable.
2. Additional Documentation: Alongside the deed, consider drafting a separate agreement outlining the reimbursement terms for repair costs and any retained interest. This document should be notarized for validity.
3. Legal Implications: There might be Medicaid or tax implications if the brother receiving the property requires Medicaid assistance in the future. Consultation with an estate planning or elder law attorney to understand potential consequences is recommended.
4. Fair Compensation: Ensuring a fair and documented reimbursement for expenses through the deed or accompanying agreement can prevent disputes in the future.
5. Legal Review: Seeking legal advice before proceeding can help identify any unforeseen legal complexities or potential challenges, safeguarding the interests of all involved parties.

Montana's real estate laws and the intricacies of property transfers often benefit from legal guidance to ensure a smooth and legally sound transaction, especially considering the potential Medicaid implications and fairness in property distribution among siblings. If you and your siblings interest in shifting after selling whole property from Montana and shifting to the city of dream and peace Mississauga of Canada the you visited the cheapest rate offered for house/condo in Ontario Canada the sites preferring by me is Bungalow Finder, Condo point and Condos.ca