Which is the best course to take.

[Ms-Girl]

How can my mom transfer her home and property to me with the following criteria:
a) Irrevocable once signed.
b) transfers at a stepped up basis upon death
c) allows me full access to live in and maintain the house.
I will not be taking out a mortgage or selling the home, so I understand that this is similar to a will except it needs to be irrevocable prior to death.

I'm from the state of Mississippi, originally we planned to use a "Transfer upon Death Deed" we don't seem to have that option in this state.

 

[nextwife]

Does mom have sufficient other assets to cover her continued housing and care needs? Are there other siblings? A spouse?

 

[tranquility]

I can think of no way to fulfill the criteria.

 

[curb1]

Why do you need "transfers at a stepped up basis upon death"?

 

[tranquility]

That's the main problem the OP has. How to transfer the property to her today, but say there is a legal transfer at mom's death so OP gets a step-up in the property basis.

 

[Ms-Girl]

Does mom have sufficient other assets to cover her continued housing and care needs? Are there other siblings? A spouse?

I never moved away from home.. home just kinda moved away from me i'm 21 and have lived here alone for the last 3 years .. my mother and dad divorced the house is hers she remarried and got another house .. shes had 3 heart attacks in the last 2 years and has some inoperable heart problems. She wants me to have this house but we are concerned abt probate. It was given to her with a quit claim deed by my grandfather over 20 years ago before he died. We could do quit claim but wouldn't she owe taxes then?

I have 1 brother she's already given him everything she would leave to him and so there is no argument over the house in addition to that I traded her a 8 thousand dollar car and gave her 2 thousand cash (this was her idea) she felt it would close the matter because i had purchased it. My concern is that the taxes might be too much to pay. My inquiry then would be what is the equivalent to a TOD ( transfer on death ) which allows me control of the house and will upon her death grant me ownership without paying probate.

 

[Ms-Girl]

Why do you need "transfers at a stepped up basis upon death"?

As i understand it stepped up basis means that the base amount that taxes are calculated from are transferred to me. so if the value of the house the (base) was 2500.00 .. 20 yrs ago that would also be my base and that was hers as well when she was deeded it.
I don't have to tell you why that would be a good thing right .

 

[curb1]

An accountant could answer this question for you in about 5 minutes. Make the appointment. My inclination would be for her to deed the house to you right now. From the viewpoint of the IRS there shouldn't be any tax consequences, unless the house is very expensive. There would be an obligation to file a gift tax form for the year of the gift, but most likely there would be no taxes due for the gift.

Another complication that might occur is if she would need to apply for Medicaid in the next five years. This would delay her eligibility.

 

[anteater]

As i understand it stepped up basis means that the base amount that taxes are calculated from are transferred to me. so if the value of the house the (base) was 2500.00 .. 20 yrs ago that would also be my base and that was hers as well when she was deeded it.
I don't have to tell you why that would be a good thing right .

Don't confuse the cost basis for income tax capital gain/loss computation with an assessed value for property taxes.