Is Transferring Ownership of Property from a Parent to a Child a Good Idea?

[@agustinnunez9481]

What's the different SSI and SSDI on a special needs trust

[@ellencookman-EstatePlanningSNT]

We’re releasing a video about the differences between SSI and SSDI in a month or two; stay tuned!

[@TheK9Shepherd]

Regarding capital gains. You only pay 30% capital gains when it's short term (stock sales for example) Long term is taxed at your income level (example for married filed jointly is around $89k you pay 0%. If your total AGI isn't above that $89k) While you didn't cover it. If you inherit stocks, any sales are considered long term (no matter how long the deceased owned the stock)

[@carolerichard5250]

Thank you

[@macrossluv]

I have a question my mother has a lot in California her and her husband purchased in the 1990’s. Her husband passed away and my mom no longer wants the responsibility of the property and is gifting it to me. What would be the documentary transfer tax? Is this the same tax my mother is currently paying on the property?

[@ellencookman-EstatePlanningSNT]

You might need to check with the assessor’s office in the county where the lot is located to figure out the documentary transfer tax.

[@macrossluv]

@@ellencookman-EstatePlanningSNT thank you

[@theTRAGICdoll-RY]

If a transfer of deed happens, does the child have to live in the home for a certain amount of years before they can rent it out?

[@ellencookman-EstatePlanningSNT]

It’s my understanding that lower property taxes under Prop 19 only continue if the child who moves into the parents’ house remains there. Once the child moves out and no longer claims that property as his or her residence, I believe the property would be reassessed.

[@theTRAGICdoll-RY]

Would this also apply to if it was a gifted deed?

[@ellencookman-EstatePlanningSNT]

@@theTRAGICdoll-RY Yes, I believe these rules apply whether the house is gifted during one’s lifetime or inherited after one’s death

[@Slava65]

So if I bought my house for $100, 000.00 14 years ago, and transfered to my kids, and now my house cost $300,000.00 .....how much my kids are going to pay taxes? Are they going to pay taxes on $200,000.00...right??

[@ellencookman-EstatePlanningSNT]

I believe a transfer by sale would trigger California property taxes in the same way that a transfer by gift would. But again I urge you to consult with a real estate attorney to get advice specific to your situation.

[@CherimoyaQueen]

what if you just add your child name to the existing residence

[@ellencookman-EstatePlanningSNT]

I believe that would be considered a gift of a ½ interest - so a lot of what I described about making gifts to children would apply.