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Author: vkg Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123143  
Subject: Re: Gift of a house Date: 9/26/2011 10:13 AM
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A friend had an elderly neighbor living with her for awhile after foreclosure. She had put her house in her son's name. Between drugs and gambling, he mortgaged the property and lost it. She should have been comfortably living in her home for the rest of her life, instead she is in a shared rental, struggling on Social Security and food stamps.

There are many things that can be done, but to do it right requires a lawyer and understanding of your state's inheritance laws.

If the daughter is truly poor, she may not be able to afford the house even if she owns it.

Giving it to her know, means that it is a gift and needs to be declared as a gift. No taxes are currently due. It reduces his lifetime gift allowance (its early and I can't remember the exact term) and the amount that passes tax free from his estate.
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