The gift and estate tax exclusion is now 1,000,000 so ...
if she's well under that, it's effectively s moot point .... However,
If you want to really dot the i's and cross the T's do the 709 and at the top write, See attached explanation... and
you'd be erring on the conservative side
BUT, as you understand, it wasn't a gift of present interest, so the appropriate time to file the 709 is now
If I open a savings account with her name on it, doesn't that eliminate any sort of 709 to be filed?
To whom was the check made out?
Well, your idea is good ... technically since you've had construtive receipt, you'd be gifting half of it back to her
and as I think about it you could make the case that you're disclaiming the gift
BUT, the joint account would still technically be gifting 1/2 to you
Hang on a sec
So there wouldn't be any capital gains then either?
When she put it in your name, how was it done?
What she had was a life estate
Wait a sec please
The life tenant can only sell the life estate. A life tenant has already conveyed away the remainder interest, and thus cannot sell the remainder interest. The buyer of a life estate gets the same rights as the life tenant, except the duration of the life estate remains limited by the life of the original life tenant.
Not sure at the moment. My understanding was that she had the right to stay in that house until she passed or wasn't able to live there any longer. But the title was totally in my name alone. She did not have to attend the closing.
Ok just a moment ... I'm guessing that the laws of your state allowed the sale to g youo through because it's the remainder interest that you sold
I think we've come full circle
Okay thanks, XXXXX XXXXX I'll probably sleep a little better tonight.
By you're being able to sell it, she is effectively gifting to you the remainder of her life interest, and therefore would very possibly be under the gift tax annual exclusion (which is 14,000 for 2013)
There ARE tables for valuing a life interest, but again if what she gifted is under 1,000,000 then the NET effect is that it's not a taxable event ... and even possibly not even a reporting event
I only got 54000 for it but the check was for 49000 after real estate fees and closing fees. Not a whole lot of money, but she needs all she can come up with for assisted living. Hell, that cost 3605 a month
I think you're fine
Ok.if she's never giftet anything else you're way under .. and it won't become an issue unless the assets when she passes would even be close to 1,000,000 (and we expect that number to go up)
Thanks, XXXXX XXXXX to bed now. You did good, or else you're just telling me what I want to hear.
Think through the logic, bookmark this, and ask the attoreys that did the closing .. . Look at my other work here, and I think you'll arrive at teh conclusion that I do not do that