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P. Simmons
P. Simmons, Attorney
Category: Legal
Satisfied Customers: 34275
Experience:  16 yrs. of trial experience
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I was divorce in 2011 from my ex-husband,who abandoned the

Customer Question

I was divorce in 2011 from my ex-husband,who abandoned the household in 2008. Since that time,I paid all the bills on the house and for extensive repairs. While the home is not in great shape, I need it for my daughter and I to live. My ex-husband has paid very little childcare support, was in contempt for child support several times, and part of the child support deal was him to pay for my child's private school tuition,since he only paid very 313.00 month for child support that had to be garnished from his employment check. My ex makes over 100,000 annually in income, I have been unemployed for over 2 1/2 years and has exhausted all of my discretionary income to live. My ex told me when he abandoned the household to date another woman that he did not want any parts of the home, especially since it needed extensive repair. I stayed with our minor child to have a roof over my minor daughter and my heads, and because I used the money from the selling of my townhome (sole owner) to pay the downpayment of my home. I recently caught up with my ex,and asked him to transfer his property rights as a secondary co-signer on my home residence property to me in order for me to try to get it repaired, etc. What is the best way for him to transfer his rights to me, and for me to avoid in the State of Maryland gift taxes, property taxes, etc.
JA: Because family law varies from place to place, can you tell me what state this is in?
Customer: State of Maryland
JA: Has anything been filed or reported?
Customer: Concerning the property no,but our divorce was final in November 2011. I would like to have him either quik claim and or interspousal transfer, but I do not know how to proceed that would be most benefical to me. I need to do this quickly while I still know his location, but I do not want to incur hefty property or gift taxes.
JA: Anything else you want the lawyer to know before I connect you?
Customer: Yes. Currently, I am in litigation for a wrongful termination --hence unemployment, and I believe my ex is helping the defense.
Submitted: 7 months ago.
Category: Legal
Expert:  P. Simmons replied 7 months ago.

Hi, My name is***** am an attorney with over 16 years experience. Hopefully I can help you with your legal question.

Expert:  P. Simmons replied 7 months ago.

Is he willing to make this gift?

Customer: replied 7 months ago.
I think so. I will need to check.
Expert:  P. Simmons replied 7 months ago.

If he is willing? Then it is easy...he forms a trust and places the home in trust (and names you beneficiary).

Forming the trust will allow transfer of the property tax free.

If he were to give to you outside of a trust he would have to pay a tax on the gift (under US law the donor pays the gift tax)

So if he is willing to make this gift, hire a local attorney to form a trust...that way you avoid the gift tax

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.

Customer: replied 7 months ago.
Thanks Philip, but wouldn't forming a trust and the transference of property have to be done simultaneously to ensure that I am the sole title owner of the property with no connections, interests or stipulations from my ex. I would like to break all ties with him with as little penalty as possible, if this is possible?
Customer: replied 7 months ago.
Also, if he transfer it as a gift. How little can he transfer it,and what is our IRS income taxes penalties, respectively. I still trying to figure this out....
Expert:  P. Simmons replied 7 months ago. can form the trust first then, after it is formed, he can add the property to the trust. NO problem with that at all.

The IRS will charge him a tax on the value of the gift in excess of $14K. So if the equity is $64K and he gave to you, he would owe a tax on $50K gift...the tax rate is based on his marginal tax rate (so if he is in the 20% bracket he pays %20 tax)

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.

Expert:  P. Simmons replied 7 months ago.

Experts on this site (myself) are compensated ONLY if the customer (yourself) "rate" or "accept" the answer.

Do you have more questions regarding this?

Thanks for your understanding