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Signing Over Rental |
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My father in law is signing the deed over to my wife and I on the family beach rental property. The property is high in value and he owns it free and clear. Other than transferring the deed in our name what else do we need to be prepared for. |
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The value of the property comes off the million dollars he could otherwise leave free of federal estate taxes at his death (in addition to whatever he left his wife, that wouldn't count).
You'll take over his cost basis for the property, including any depreciation schedule he's on. That means when and if you ever sold, you'd have the same taxable capital gain he would have had. (If you waited to inherit it, under present law you'd get a new "stepped up" cost basis, value as of the time of death.)
Beyond that, if it's a rental property, are you going to manage it? If so, I trust you know how to be trouble-free landlords.
Those are just a few of the things that come to mind. It would be a very good idea if your father-in-law, or perhaps all of you, went to a lawyer who specializes in estate planning to discuss the whole situation and see if that's the prudent thing to do at this point. |
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Edith
Originally published on April 21, 2008 |
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