Expert: Dick Dennis - 5/29/2006

Question
Hi
 My father recently died at 83. His wife, 75 now owns the family home free & clear. Others have recommended she sign a quit-claim deed to us sons, store it away until her death when it can be recorded by us, avoiding probate. What do you think?

Answer
Better yet, you all pitch in and hire a real estate attorney or an estate attorney and do a revocable living trust.

That way she remains at trustee and all you sons are substitute trustees. This way upon her demise, you all step in as head trustees and you also step up in taxable basis therefore not paying much taxes, if any.

I strongly suggest you sit down with a tax attorney or CPA who is familiar with this maneuver. If you take title now, you would be liable for any taxes as if you owned it from day one like she did.

I do wish you well.

Dick Dennis        dixiedee13@aol.com