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Roger
Roger, Lawyer
Category: Real Estate Law
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Rather than get a reversable mortgage, my grandshon wants to

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Rather than get a reversable mortgage, my grandshon wants to gift me $1000 a month for extra expenses and I inturn will leave my home to him in my Will. Can this be done without any tax consequences?
Submitted: 7 years ago.
Category: Real Estate Law
Expert:  Roger replied 7 years ago.

For 2010, a person can gift up to $13,000 per year to another person without any tax consequences. Therefore, at $1000 per month, you should be safe. However, this number changes every year, so you'll need to keep abreast of the matter in case the amount decreases in the coming years. If you are gifted more than allowed, you'll have to file a gift tax return with the IRS.

 

There will be no transaction tax consequences regarding you leaving you home to your grandson. However, his ownership could make the property taxes rise as you likely have exemptions that he does not/will not have.

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