Present and Future
Residential Real Estate
Third, and maybe most essential, including a child’s name to a property can result in disastrous present and estate tax penalties. If the kid has not contributed an equal amount of cash because the mother or father when buying a house, the mother or father could possibly be responsible for a gift tax within the year the home was purchased or transferred. Later, after the parent dies, the complete worth of the home will be included in that parent’s estate for estate tax functions unless it can be established that the kid contributed to the acquisition.
