Dear MarketWatch, We are a couple in our 80s who have been retired since 1996. We have two children who are residing in two of our houses. We would like to know when we should initiate a transfer of the titles to the children that would be tax-advantageous to them. Thank you.
The parents Dear parents: You are generous to your children, but since the houses are being used by them already, what is the rush is to get the titles into their name? Your focus on their taxes sounds like a noble reason, but what about what works best for you as a couple? Your financial situation, estate and familial relationships hold the key. The essential factor is the value of your total assets, then your federal and state estate tax situation and how your will, and trust if you have one, are written. Then there’s Medicaid eligibility rules as well as gift and inheritance tax issues. Without knowing all your financial details and the state you live in, I can only give you a broad overview of issues to consider. I urge you to consult your accountant, attorney or other adviser. It’s critical to speak to your childr …