I am the owner of the house where my husband and I live, and I want to make sure that it goes to my daughter when I die How do I protect this house if I die before my husband? I have paid a large mortgage and the title deed is in my name only.
We also have a common second home and we actually sold it to my son who took care of paying the mortgage. My husband and I both agree that the house is his and we use it for vacation all our lives.
My husband received income from the property he owned before our marriage. From this income comes the cost of living. How can I guarantee that this income will continue if he dies before me so that I can stay in my current home and my life is not disrupted?
This is a worrying question because he has a greedy daughter and this is second marriage for both of us. All his income from his separate property goes to him. Is one wish enough? What if I advance my husband and he writes a new will?
Dear second wife,
If your husband owns the property, he has the right to leave it to his daughter if he wishes, along with the income from those properties. You want to leave your residence for your daughter. “Gourmet” can also be synonymous with someone who wants the same thing as us. Everything is relative, and it is not necessarily greedy because it expects these features.
That said, congratulations on paying for your home and having a second home that you can finally give to your son. There are several ways for your daughter to leave this house, since only your name is on the document. About half of the U.S. states and the District of Columbia allow so-called “death transfer” documents that bypass Probate when you die.
In some states, including Michigan, Florida, and Texas, a “ladybug deed” resembles a death contract, allowing people to transfer property to a beneficiary after their death, avoiding probate, and allowing the beneficiary to live on the property. For their lifetime. This may be useful in some states for those wishing to qualify for Medicaid.
You can choose a life estate, a formal agreement that will allow your husband to live there forever, and transfer it to your daughter as the nominated heir after your death, avoiding probate court. This can protect your estate from Medicaid liens. If your daughter sells later, she will only make a capital gain based on the value of your home at the time of your death.
As Winston Law Group noted: If the house is sold in your lifetime but has already passed to your daughter, she will receive a proportionate share of the income and may have to pay capital gains tax. “Ultimately, if parents want to recover the remaining interest or borrow against the property, all children will need full and voluntary support,” the law firm notes.
Qualified Personal Residence Trust (QPRT) is a special type of non-permanent trust that allows you to transfer your home to your daughter and allow you to stay at home for a specified period of time as defined by the trust. If the trust has expired before you, there are inheritance tax complications and you will have to pay a fair rent to stay at home.
In addition to the risk of the trust surviving, CNET Tax Guy Bill Bishop writes: When the trust is after a certain number, you can pay your daughters rent if you want to continue living in it, reducing the size. Of his taxable assets. “Of course,” he adds, “if you have a bad relationship with your kids, you might as well take to the streets.”
Alternatively, you can sell the house at market price; If you sell it at a price lower than the market price and are prepared for the tax result of the sale, it will be considered a gift. There is a tax effect on giving your daughter a home – your daughter will not increase the base for capital gains tax purposes – and this can lead to Medicaid complications later on.
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