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Kevin · 06-22-2010, 07:15 PM

...property to my child first.? I want to transfer the property to my child first (he's over 18) for personal reasons. We currently have a buyer seriously interested in the property.
What's the best way to do this (the way with the least amount of tax liability)?
Also, I would like to split the proceeds of the sale amongst my 3 children.
I want to transfer the property to my child first (he's over 18) for personal reasons. We currently have a buyer seriously interested in the property.
What's the best way to do this (the way with the least amount of tax liability)?
Also, I would like to split the proceeds of the sale amongst my 3 children.
I also live in California.

Othniel · 06-22-2010, 09:10 PM

This will be counted as a gift and you will have to pay the IRS gift tax. If your intent is to distribute the proceeds of the sale to your three children then I suggest that you set up a trust for their benefit with the money from the sale of the house. It can be established by an attorney and will make these funds available to your children in an orderly fashion.

The other way of handling it would be to put the money in a separate bank account and withdraw $12000 per year and give it to each child. If you are married then both husband and wife can give $12k per year to each child without gift tax.

I have observed that kids generally do not mature until they are about 30. An 18 year old would not make good use of this generous gift unless it were administered properly.

Yahoo Answers is not a good place to get this kind of guidance. Go to a recommended attorney and tell him or her what you want to accomplish within the limits of the law and taking advantage of provisions within the tax code to achieve the maximum benefit for your family.

Realtyyoudefine · 06-22-2010, 09:21 PM

Once you transfer the deed to your son, YOU cannot sell it. Only he as the legal owner can do so and only he can determine how the proceeds are split.
You should talk to a tax professional about the tax implications and get an attorney to draw up the transfer of deed if indeed this is what you decide to do.

06-22-2010, 07:15 PM	#1 (permalink)
Kevin Status: Junior Member Join Date: Jun 2009 Posts: 6	I want to sell a house. However, I would like to transfer ownership of the... ...property to my child first.? I want to transfer the property to my child first (he's over 18) for personal reasons. We currently have a buyer seriously interested in the property. What's the best way to do this (the way with the least amount of tax liability)? Also, I would like to split the proceeds of the sale amongst my 3 children. I want to transfer the property to my child first (he's over 18) for personal reasons. We currently have a buyer seriously interested in the property. What's the best way to do this (the way with the least amount of tax liability)? Also, I would like to split the proceeds of the sale amongst my 3 children. I also live in California.

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06-22-2010, 09:10 PM	#2 (permalink)
Othniel Status: Junior Member Join Date: Jun 2010 Posts: 1	This will be counted as a gift and you will have to pay the IRS gift tax. If your intent is to distribute the proceeds of the sale to your three children then I suggest that you set up a trust for their benefit with the money from the sale of the house. It can be established by an attorney and will make these funds available to your children in an orderly fashion. The other way of handling it would be to put the money in a separate bank account and withdraw $12000 per year and give it to each child. If you are married then both husband and wife can give $12k per year to each child without gift tax. I have observed that kids generally do not mature until they are about 30. An 18 year old would not make good use of this generous gift unless it were administered properly. Yahoo Answers is not a good place to get this kind of guidance. Go to a recommended attorney and tell him or her what you want to accomplish within the limits of the law and taking advantage of provisions within the tax code to achieve the maximum benefit for your family.

06-22-2010, 09:21 PM	#3 (permalink)
Realtyyoudefine Status: Junior Member Join Date: Jun 2010 Posts: 1	Once you transfer the deed to your son, YOU cannot sell it. Only he as the legal owner can do so and only he can determine how the proceeds are split. You should talk to a tax professional about the tax implications and get an attorney to draw up the transfer of deed if indeed this is what you decide to do.