In Nebraska. Looked at state/county web site but couldn't find clear explination. Real Property (land, buildings, house) value is ~300k. What is the best way to do this and minimize tax and lawyer fees?

Thanks.

 

Not shure about your state but in ILL there needs to be some money change hands whether it be 1 buck or whatever, and it has got to be more than 2 acres, get it surveyed and drawn up and your good to go.

Darwin

 

Some states allow you to "gift" to your relatives bypassing the taxes. Ohio does not allow that. We have sell the taxable item but usually sold for only a dollar.

 

Whatever route you chose, I would stay away from adding them to the title WITH your name. Any creditor or divorce situation, etc., woul make the property susceptible to being split up and possibly make YOUR intrests in the property elgible for any of the recovery saught. Might look into Dave Ramsey for further info.

 

Good point Don.. Also, make sure there is no owed taxes on the land. You will inherit those also..

 

Should of mentioned, we have thought about into putting it all in a trust. There are no liens or owed taxes on the property. It's 160 acres w/ 5-6 acres as house and buildings, 80 farmed dryland and, remaining in pasture.

My grandparents settled there in the 30's so keeping it is important to us.

I will eventually end up living there to care for my dad unless certain medical conditions arise that he needs 24/7 assisted living.

 

Another thing to look into since health is the issue. If his or wife are on anything and he DOES go to a professional home. Medicare will seize a high percentage of the assetts before they pay out to homecare. You really aughta shop for a lawyer. Especially with all the tax and inheritance changes taking place at the moment.

 

I would seriously consider looking at putting the property in a trust. This way your sons won't be trying to do down the road what you're doing now, and the laws might change making it harder for them to do then.




Kris

 

My sisters and I did something similar with my mother. Mom is 92 and on Medicare. If the transfer was in the last 5 years, they will look really closely at it. Since our property is in Forest Reserve and the next legal cull won't be for years, they let it slide.

This is where a good lawyer is worth his fee. I make it a point to always do favors for friends who are either a lawyer or doctor. I put a set of motor mounts in one friends truck and a new clutch in his wifes car. Later on, a rather spirited Banzai run with a car I had just put together to see what it would do was interrupted by a State Trooper. My friend is a professional corporation but he represented me for cost. My cost was about $26 for fuel and paper to get to court. Because of the speed, I had to bail out of jail pending trial. We won. Had I lost, it would have cost major bucks in fines and increased insurance costs, if I even kept my license. After he got done, I wondered why I was even stopped. His normal fee would have been $300 just for the court appearance.

To get back to the topic, my sisters and I paid mom $50 for her interest in the property. My uncle also has an interest in the property. The legal details, at least on our part, are all taken care of. Each state is different and Medicare is run by each state individually so GET A LAWYER. It's like putting a front seal in a transmission when you put a new engine in the truck. If you don't and it leaks, you've got hours of aggravation for a cheap part.

Lastly, as your father gets older, this will have been taken care of and he will fret less. He will then start to trust your judgement and as his health fades, he will not fight any decisions you may need to make.

 

Health is not an issue right now so that's why we want to get this done. @ 72 he is very active and is horseback most of the time. 20+ yrs w/ a pacemaker and 2 new knees has not slowed him down.

I think a trust is the way to go and have to get my brother and dad on board.

 

have to keep amt given less than 13k to avoid gift tax. your mother can give you 13k also. He can sell it to you and set the payment at 13 or 26k per year and forgive it as a gift and avoid gift tax.