Have Legal Questions? Ask a Lawyer Now.
Hi, I'm Thomas and will be happy to assist you. My goal is to make you a very satisfied customer! Thanks in advance for your patience.
You could renounce your right to take under the will. If you do that, then for legal purposes you are treated as if you died before your dad. That would most likely mean that you siblings, if any, or your children, if any, take the property and that your Aunt would not get the home.
The nice thing about renouncing your right is that you don’t have any gift tax issues. Of course, it doesn’t ensure that your Aunt takes the property and so is probably not the best option for you.
Your other option is to gift your right in the property to her. There are gift tax consequences for the value that is over $14,000 in a single year. So, whether there will be a gift tax issue depends on what the balance is on the reverse mortgage and the home value on your father’s date of death. If there are gift tax issues, you can use part of your lifetime gift tax exemption (of $5.25 million) to avoid gift taxes. You would have to file a gift tax return to use that exemption. If the value you gift her is not greater than $14,000, then you would not need to file a gift tax return.
So, the short answer is that you can give the home to her without worrying about taxes. You'll just potentially need to file the gift tax return. Please let me know if you need additional assistance. Thanks!
Thank you very much.
You're very welcome and thank you!. I would be grateful if you could please leave me a positive rating. Have a good day!
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).