• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Legal implications of being on all parents assets?

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Karen LeBlanc

Junior Member
What is the name of your state? Florida/Michigan

Please bear with some of the "story" to explain this situation. My parents (who live and own property in Florida as well as ,have some investments and money markets ect) became concerned that in the event they were incapacitated in any way they wanted someone they trust to be able to make payments and pay bills ect. They added me to the title of their home, as well as, to their bank account and investments. They also were interested in a plan that would not involve probate in the event of their demise. It was my understanding I was added as a precaution in the event they needed assistance. This was done about 5 years ago.

Mom unfortunatly passed away this year and Dad has moved to Michigan to be closer to family. He still owns the Florida place however, he finds himself unable to afford both places. ( Of note, I am a U.S. citizen living in Canada as a Landed immigrant.) Dad would like to keep the Florida home in the family but cannot afford the overhead so he has gone to all my siblings and asked if any one was interested in purchasing the place. All 5 siblings are not interested so my husband and I are considering purchasing the property.

I have concerns in a few areas of this situation: First of all, what are the implications for me being on all dads assets regarding income tax ect. All account info and statements are provided soley to my dad. He does have a will and I am knowledgable what his wishes are concerning his assests. In the event of his demise, with the way things are set up now, what are the ramifications for me regarding taxes ect? I really do not want any financial surprises down the road for either of us.

Also with regards to purchasing the home, I am on the titile with dad and he thinks that we should leave the title as is because Florida is documented as his primary residence and he receives the homestead exemption. Dad has offered a very fair purchase price and is interested in receiving payment per month for the property. He would continue to have full access, as would the family. This transaction would fulllfill his desire to keep the place in the family while not having the financial burden of the property. It appears to be a win, win situation, however, I am aware that things are not always as they appear. I am uncertain if keeping the titile in both names is the best thing to do if we decide to purchase.
WOW this is a wordy one! I apprecitate ANY direction you can provide.
Thanks in advance for your patience in reading this.
What is the name of your state? Florida/Michigan
 
Last edited:


divgradcurl

Senior Member
First of all, what are the implications for me being on all dads assets regarding income tax ect.
Generally, you would be partially responsible for income taxes on any increases in the value of CD's, money market accounts, other investments, etc. As far as real property is concerned, you would be liable for property taxes, and potentially liable for injuries or whatever that occur on the land.

He does have a will and I am knowledgable what his wishes are concerning his assests. In the event of his demise, with the way things are set up now, what are the ramifications for me regarding taxes ect? I really do not want any financial surprises down the road for either of us.
What does the will provide for? Anything already in your name will not be dealt with in probate, and will not receive a step-up in bases, so there may be capital gains tax issues on down the road if you ever sell any assets that were gifted to you.

I am uncertain if keeping the titile in both names is the best thing to do if we decide to purchase.
How would the house be titled? If Joint Tenants with rights of survivorship, then maybe it's not such a big deal, because you would get the whole house when he died. If tenants in common, you could end up sharing ownership of the house with his other heirs unless he updated his will. Maybe a life estate, rather than keeping him on the title, would resolve his issues.

Talk to a CPA and/or an estate planning specialist, who can review all of the actual facts of your situation and advise you accordingly.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top