Dad buys house for married daughter: Best vehicle for liability and tax?

Asked about 2 years ago - Reno, NV

If Dad wants to buy a house for his married daughter and her husband, what's the best way to do this to limit tax liability and generally any liability? Purchase the house through llc, llp, business trust, etc.? I want to know what's best to avoid Dad or kids having to pay income tax, gift tax, etc... Thanks.

Attorney answers (1)

  1. Frederick D Williams

    Pro

    Contributor Level 9

    1

    Lawyer agrees

    Answered . The best answer may depend on what Dad's intentions are for the house in the long term. Does he intend for it to be daughter's family's house forever, or to keep it in his name and possibly pass it to someone else upon either his death or that of the daughter? If this daughter is the sole heir to his estate, it can be done pretty simply with most common estate-planning vehicles, including by will, trust or beneficiary deed. Which of these is best depends on Dad's other assets, other beneficiaries and a number of additional circumstances that weigh in to the decision. Tax ramifications should certainly be taken into consideration, too, and there are several options to minimize or avoid entirely any such consequences here.
    Your question is a very good one, but it really leads me just to advise that Dad should talk with a competent estate planning attorney with a real estate background who can help him to evaluate all options and decide on a best course for this transaction. Our office would be happy to offer a free initial consultation to discuss it with him.

    Mr. Williams is licensed to practice law in the state of Nevada. The foregoing response does not constitute legal... more

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 

Ask now

29,450 answers this week

3,005 attorneys answering

Ask a Lawyer

Get answers from top-rated lawyers.

  • It's FREE
  • It's easy
  • It's anonymous

29,450 answers this week

3,005 attorneys answering