gift house?

[WITAXLADY]

Parents have 2 children that are autistic - 1 able to work and highly functioning, other not so..

They would like to gift their house $15,000 x 1 or 2 each year to the older one - second would have issues with ABLE account..

So they have the home upon their death or not being able to have assets - 5 year lookback -

Dad is not in great health either.. he is 62

Is there another/better way to do this? Value of home - $120,000

I assume they also need POA Financial for all parties and health

See an attorney? Last Trust cost $6500 -too much for them.

Not much money here...

Thoughts?

thx d

 

[Lee B]

Sounds like the practice of Elderlaw

[DANRVAN]

As cbslee mentioned, you need to be careful about giving out legal advice. Maybe you can help them find legal assistance for low income or elderly.  Your state bar association might have a  program.

On the tax side of it,  they can gift the entire house in a single year without paying gift taxes since the value is well below the exclusion amount.  However, they will have to file a gift tax return.

You can also advise them that if it is done right, they can retain a life estate and their heirs will received a stepped up basis in the property.

Good luck in helping them out.