Mother in financial bind

Expert, localized Los Angeles answers provided by Heather Roy

Mother in Financial Bind
	My mother was in a financial bind, unable to make her loan payments, and so she came to me looking for help. I was unable to do so, but I later learned that she went to my younger brother and subsequently signed over her house to him. He has now taken over the loan payments while my mother lives in her home. I can't believe my mother did that! What are the legal repercussions of such a transaction? What is the tax liability regarding capitol gain for my brother should he decide to sell?

	If your mother decides to sell, or your brother does, he will owe capital gains tax and his profit will be figured from your mother's cost basis, which he took over along with the house. She had every legal right to do that, if she wanted to. That's about all I can tell you.
	Edith Originally published on April 21, 2007

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Mother in Financial Bind