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.
Wills and Living Wills Lawyer
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.
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.
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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.
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