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.
Personal Injury Lawyer
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 advice and does not create an attorney/client relationship. The response is, essentially, educational only, and is intended to provide general legal information about the matters presented by the question. Often, the question does not include significant and important facts, dates and other information that, if known, could significantly affect the appropriateness of the response and make it unsuitable. Mr. Williams strongly advises consulting directly with an attorney licensed in your state in order to ensure proper advice and counsel is received.
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