Title/deed transfer while trying to sell property

[JennRick]

What is the name of your state? NY

The situation: Mother owns property. She would like to transfer ownership to her two grown children. Children want to sell immediately following transfer. Is there a fee for this? Can it be done quickly and easily? Should this be done as soon as possible since the property is going to be listed tomorrow under mother as the seller. Or is there a better way to do this? The bottom line is that Mom no longer wants this property and would like to give it to her two children. Her two children would like to sell the property and split the proceeds. Please help us figure this situation out! Thanks.

 

[SueDSeller]

It will cost - but only a little

What is the name of your state? NY

The situation: Mother owns property. She would like to transfer ownership to her two grown children. Children want to sell immediately following transfer. Is there a fee for this? Can it be done quickly and easily? Should this be done as soon as possible since the property is going to be listed tomorrow under mother as the seller. Or is there a better way to do this? The bottom line is that Mom no longer wants this property and would like to give it to her two children. Her two children would like to sell the property and split the proceeds. Please help us figure this situation out! Thanks.

Does she own the property free and clear? (No mortgage or lien) - She can Quit Claim the property to you and your sibling. And you can record the deed immediately. She may change her mind the day after tomorrow or accept a low offer etc, so get the property in your names NOW.

There will be some fees - document cost, notary, recording, maybe state and local taxes (but not much on a gift) - title insurance if you think there is the possibility of encumberances (old liens, other relatives, irregular deeds in the past). The transfer may cause an increase in the property tax bill - but not much compared to the value of the property.

This process doesn't take long, I would wait to list the property until it's done. No reason not to talk to Realtors, get market info from several and have a very polite way to say "We can't list just yet, we will call when the deed is recorded."

Where is momma going to live? And has she enough to live well on? Is she going to be writing in and saying "My kids put me on the street and took all the money from the sale of my house and I can't get Medicaid for a nursing home because of the transfer." It would be kindest and ethical and all that to take momma to consult with a certified financial planner.

 

[BelizeBreeze]

Actually, it will cost quit a bit. Care to tell them why?

 

[SueDSeller]

Look a little deeper

And while you are looking up financial planners - be sure to check the tax consequences to you for a quick sale - capital gains could eat a huge chunk of money - I dunno about gift tax -

If this is mom's primary residence and she's had it for a while - she can take a lot of profit tax free.

 

[JennRick]

Hi again...sorry it took so long. Mom owns the property free and clear. It is not her primary residence. She owns her own home. This property was used by various relatives over the years. The house on the property has been demolished. So it is just the land we are talking about. It is in her will and idvorce papers dated back to 1974 that this is to be divided between the two children. We just want to use it now as opposed to later. You know what I mean? Mom wants her kids to have it and there will be no "indian giving". I am positive on that. What is the best way to get the most out of this property without losing all of its value to Uncle Sam. Catch my drift. Gosh...I am so confused!!! Help!!! Thanks

 

[BelizeBreeze]

Hi again...sorry it took so long. Mom owns the property free and clear. It is not her primary residence. She owns her own home. This property was used by various relatives over the years. The house on the property has been demolished. So it is just the land we are talking about. It is in her will and idvorce papers dated back to 1974 that this is to be divided between the two children. We just want to use it now as opposed to later. You know what I mean? Mom wants her kids to have it and there will be no "indian giving". I am positive on that. What is the best way to get the most out of this property without losing all of its value to Uncle Sam. Catch my drift. Gosh...I am so confused!!! Help!!! Thanks

then the only problem you have is Short Term capital gains which will bite you in the ass.

 

[JennRick]

okay...I got what you are saying...BUT what if we were to reinvest the profit into buying a new home? We wouldn't be using it for anything else but real estate. Can the capital gains tax then be avoided or cut way down??? Thanks again for your replies!

 

[BelizeBreeze]

okay...I got what you are saying...BUT what if we were to reinvest the profit into buying a new home? We wouldn't be using it for anything else but real estate. Can the capital gains tax then be avoided or cut way down??? Thanks again for your replies!

YOu are getting into issues that will need PERSONAL attention of a financial planner.

 

[HomeGuru]

YOu are getting into issues that will need PERSONAL attention of a financial planner.

**A: Isn't Scruffy a CFP?

 

[JennRick]

Thanks again.

 

[BelizeBreeze]

**A: Isn't Scruffy a CFP?

She's doing 'time' for scratching out the Tax Examiner's eyes.

 

[HomeGuru]

She's doing 'time' for scratching out the Tax Examiner's eyes.

**A: what a taxing injury..........I hope the injured did not get cat scratch fever.