Skip to main content

Giving free rent to adult child

Malibu, CA |

I own a home outright which is in a trust. I want my son to live in it free for life. Are there tax consequences.

Attorney Answers 3

Posted

An attorney can help you amend your trust to create a specific gift of a "Life Estate" to your son. After you die, your son would have the right to live in the house under terms that you specify in the gift (i.e., rent free). When your son dies, the remainder beneficiaries are then entitled to the house. The only tax consequences would revolve around who is going to pay the property taxes. You can specify in the gift who is to pay the property tax - either the trustee of your trust, your son, or the remainder beneficiaries. Consult an estate planning attorney who specializes in trusts to do a trust review with you. My answer, although accurate, is only loosely based on the very limited information provided in your question. In my office, I would ask several questions about you, your family, your assets and your specific estate planning goals you would like to achieve through your estate plan, then I could review whether your current plan is meeting your goals and help "fix" your documents if they need adjustment.

The information provided in this answer is general in nature and is not intended to create a specific attorney / client relationship between us AND should not be construed as legal advice to be acted upon without consulting a qualified attorney in person.

Mark as helpful

1 found this helpful

4 lawyers agree

Posted

Depends what tax you are speaking of. Offhand, it seems to me there could be property tax issues as well as possible gift tax and or capital gains tax, depending on all of the facts of your situation. That does not mean you should not do this. But I would have an attorney review your plans to determine how best to structure things.

James Frederick

***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!

Mark as helpful

1 found this helpful

4 lawyers agree

Posted

My colleagues have provided you with sound advice. Your best bet would be to meet with a local estate planning attorney to review your existing estate planning documents and determine what needs to be "tweaked," if anything, to achieve your goals. Best of luck to you.

** LEGAL DISCLAIMER ** My response above is not legal advice and it does not establish an attoreny-client relationship. When responding to questions posted on Avvo, I provide a general purpose response based on California law as I am licensed in California. In reviewing my response, you are specifically advised that your use of, or reliance upon any response I provide is not advisable. I do not have all relevant background details or facts related to your issue / matter, thus I am not in a position to give you legal advice. Further, your review, use of, or reliance upon my response does not establish an attorney-client relationship between us nor does it qualify as a legal consultation for any purpose. For specific advice regarding your particular circumstances, you should consult and retain local counsel. Law Offices of Eric J. Gold www.EGoldLaw.com Telephone: 818-279-2737 Email: service@egoldlaw.con

Mark as helpful

1 lawyer agrees

Tax law topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics