How can i turn my house over to my Granddaughter
2 attorney answers
Many counties have an elder law project that provides assistance to older folks and often includes will preparation. Call the local Somerset county bar association and inquire. Mr. Popovich gave you really good general advice especially about the stepped up tax basis your house gets it is it inheritted instead of deeded now. If you do not already have a will, a durable power of attorney and documents that state your wishes as to end of life health care decisions when you cannot make them yourself, you should also address those even though you have a lot of life remaining. A will saves money even when you have only one living heir because you can excuse her from the requirement to post a bond and appoint her to act as your executrix to wind up your estate when the time comes.
Consult an elder lawyer to determine how best to do this, and make sure your will is done properly as well. It might be better for you to do it in your will so you don't have to pay gift tax when you give it to her, or some other methd depending on your and her overall situation. The basis on the house will go up to the current value if she inherits the house, and she will not have to pay capital gains on it. It sounds like you are below the estate tax level for NJ so that might be the way to go. But please consider this just general discussion, spend a relatively small amount for an estates attorney to advise you properly on this in your circumstance. And grandchildren don't pay inheritance tax on that.
Many think putting property in others' names is the way to go but it often is not.
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