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Swapping houses through gifts

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blazerbill

Junior Member
What is the name of your state?What is the name of your state? Az

My mother has a house worth about $400K and she would like to do an exchange for a house worth less and take the difference to live on during retirement. I have a house worth $200K. Why can't we gift each other our houses? I will also gift her $1275 per month for 15 years. I understand that my capital gains basis will become hers and visa versa. I also understand that the value of the homes gifted and the amount gifted each year over $11K will count toward each of our $1Million life time tax free gift limit total. Are there any other problems with doing this? Will the difference in the home values be protected from the Medicaid look back after three years?
 


S

seniorjudge

Guest
blazerbill said:
What is the name of your state?What is the name of your state? Az

My mother has a house worth about $400K and she would like to do an exchange for a house worth less and take the difference to live on during retirement. I have a house worth $200K. Why can't we gift each other our houses? I will also gift her $1275 per month for 15 years. I understand that my capital gains basis will become hers and visa versa. I also understand that the value of the homes gifted and the amount gifted each year over $11K will count toward each of our $1Million life time tax free gift limit total. Are there any other problems with doing this? Will the difference in the home values be protected from the Medicaid look back after three years?
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