Selling Home to Child To Go Fulltime

[MRichaud]

Great thread here!

But not meaning to be a wiseacre, I believe the proper term is "quitclaim" deed. We've had to do a couple of them on different properties, and it's pretty standard stuff.

https://www.rocketmortgage.com/learn/quitclaim-deeds

[twogypsies]

Keep in mind that many of us are not the same. We had a gorgeous home on a lake in Michigan. Decided in three months to go full-time. We hated the Michigan winters. Sold the house and everything in it within the three months. The kids were determined to find jobs elsewhere... and they did. We full-timed 16 years and settled in a state that we would have never thought of doing pre-full-timing. The kids are happy where they live and we are, also. It came completely furnished in a 55+ community... only 1200 sq ft - perfect for us.... awesome mountain views, small town and no snow to shovel! When full-timing we spent the winter in a park full of full-timers. Twenty-three couples from that park moved to our small town and we have good support. Excellent medical facilities. We help each other in many ways. No regrets. We made the decision that our kids will not be taking care of us. We will use an assisted living facility.

[Bonron]

Originally Posted by Bonron

What a wonderful story, you must be very proud of your son. HOWEVER!! ,, you people need to talk to an estate attorney and get some guidance. Putting your child/children on the deed is non-reversible and opens them up to capital gains when you pass and that could be considerable. If instead you put them in a trust and when you pass they inherit the home at the stepped up basis and there’s no taxes due, and the property transfers with no probate. I believe it’s up to $11 million dollars now.

If you have a child who falls in to a financial bind he/she could take out second trust deeds or worse file an ex-parte on the house and force a sale. Just sayin.

I failed to add one more caveat about putting your children on your deed. If that child has no other assets and gets involved in a law suit and loses, then the attorneys can put a lien on the property and demand the sale to recover their award and fees. Let’s say that your shack is worth $300k and a child is sued. &100k is in jeopardy. Yes you could quit claim or homestead your property but the judge would see through this maneuver and not allow it. In a trust you keep control of the family home until you pass and the transfer is quick and painless, and no probate.

[Bigceasar]

Originally Posted by JanShirk

With what you just stated I don’t understand your dilemma. I wouldn’t hesitate to “gift” them the $50,000.You still have a place to return whenever you want. And is the pole barn able to be converted to a living space should you decide to no longer travel? Just make sure to keep a life interest in the pole barn and land. Check with an attorney, but I’m sure it can be done.

$50,000 might be a huge portion of their retirement nest egg. And any agreement allowing them to stay is always subject to change. Family relationships are always in flux. A divorce between daughter and son in law could force a sale. The son in law’s family may need a place to stay take the space. Zoning could change and living in RVs no longer be allowed. Amy transaction should be clean, complete and final. And if the daughter pushes for a discount, that would strike me as incredibly selfish. Putting their finances ahead of her parents retirement funds.

[oatmeal]

Originally Posted by dougw2007

If you do that you just gifted them 1.25 million. They will have to pay tax on that amount.

What kind of tax will they have to pay?

Originally Posted by Rev. Roy

You didn't say if your daughter is an only child or not and that could be a factor.

Actually he did say--he has two adult daughters. I guess you didn't read the whole thread before replying.

[txcpl]

I don’t know the laws in your state, but investigate a lease -purchase option. If structured props, it could be a benefit both parties.