My question involves real estate located in the State of: California
My father made a Deed of Gift to my two brothers and I, 23 years ago. It was notarized and filed with county. Since then, after death of father, one brother remained living there, is single and never married and one brother died. The living brother is ill and wishes to give me his third of the house to avoid his probate should he die. It will probably have to go into probate for the dead brother who had a wife and no children, but I'm trying to at least avoid the probate on the 2nd brother. I'm worried about the tax consequences though and the quitclaim deed has a "Transfer Tax" listed first on the form. Would I figure that tax and list it on the form and then file the exclusion form for transfer between siblings? Or do the exclusion first and list no transfer tax? If there is a transfer tax I have to pay would it be better to do a Gift Deed where since there is not enough money to have to pay gift tax? The house is worth maybe 200,000. so the 1/3rd he owns would be about 66,000 market value, not assessed. As I understand it, under 5 mil. you don't have to pay gift taxes--does that go for both giver and recipient? Are these the best methods to consider or whould I look up warranty deeds. I'm confused enough as it is.
My father made a Deed of Gift to my two brothers and I, 23 years ago. It was notarized and filed with county. Since then, after death of father, one brother remained living there, is single and never married and one brother died. The living brother is ill and wishes to give me his third of the house to avoid his probate should he die. It will probably have to go into probate for the dead brother who had a wife and no children, but I'm trying to at least avoid the probate on the 2nd brother. I'm worried about the tax consequences though and the quitclaim deed has a "Transfer Tax" listed first on the form. Would I figure that tax and list it on the form and then file the exclusion form for transfer between siblings? Or do the exclusion first and list no transfer tax? If there is a transfer tax I have to pay would it be better to do a Gift Deed where since there is not enough money to have to pay gift tax? The house is worth maybe 200,000. so the 1/3rd he owns would be about 66,000 market value, not assessed. As I understand it, under 5 mil. you don't have to pay gift taxes--does that go for both giver and recipient? Are these the best methods to consider or whould I look up warranty deeds. I'm confused enough as it is.
Deeds - Quitclaim: Conveying Property by a Gift Deed vs. a Quitclaim Deed
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