Expert: Dick Dennis - 4/3/2009

Question
Good Evening,

I inherited my parents' home. My mother passed in 1994,and my father in 2007. It was left to me in his living trust.
Major unexpected repairs were needed on the house, and my son has been doing all the work. I would like to sell it to him by next year for less than the appraised value at the time of my father's death. Do I wait until he secures a mortgage to get a title search and the deed name changed, or should I do it now, since the inheritance taxes have at last been paid?
Thank you for your time!

Answer
You may want to talk to the attorney who made that living trust and see if it is possible to put your son in that trust. If that be possible, then there may not be any captital gains tax for him or you to worry about. Talk to a real estate or estate attorney or CPA to make sure this all goes down well for you.

A lender will not allow you son to borrow for a mortgage until he is actually on title. If you give or sell him the title, there may be a tax problem later on (since I do not know the complete story). A good CPA would be able to tell you the right way of doing it. I do wish you well.


Dick Dennis