hotott 0 Report post Posted September 7, 2006 2 yrs ago my father going on advice of his lawyer in an effort to avoid estate taxes and avoid issues concerning a will, medicare, etc., "gifted" his property/house to his 5 children for "$1". In another forum/site, I was told that this only opens the road for higher capital gains taxes. Is this so, and is there a better way it can/could've been done. I am not very familiar with RE tax laws or inheritances, so could someone tell me some of the ways that transfering property to family members could be done and the (dis)advantages of the different ways this could be done? ie; will vs gift vs sale vs ??? Also could his gift be given back to reverse what was done 2 yrs ago without tax (or other) consequences? Share this post Link to post Share on other sites
Dave T 0 Report post Posted September 8, 2006 At this point, what is done is done. You and your siblings now own the property. You and your siblings will have to cooperate fully if anything can be "undone". That's a big IF. Apparently, the attorney followed your father's wishes to avoid federal estate taxes, to avoid probate at his death, and to avoid squabbling over a will. Medicare should not have been a problem, so perhaps you meant to say Medicaid. If so, then the attorney followed your father's instructions and accomplished everything your father intended. Your father may not have been well advised on the best course of action to accomplish all the above in a way that results in the best outcome for his children, such as the stepped up basis assets receive when inherited. Maybe that was not your father's concern. Best to consult an attorney, perhaps an attorney more familiar with estate planning, on possible ways to overcome all the problems you and your siblings are now facing. The solution requires a legal opinion. Share this post Link to post Share on other sites
