Michelle is with us in Springfield
Illinois hi Michelle how are you doing
great day thank you how are you better
than I deserve what's up well my
question is my dad wanted to put my name
on his his property his home he doesn't
know anything on it he owns it outright
as security if anything ever happened to
him I would just take possession of the
house and my husband and I are wanting
to buy a house next year and I'm
wondering if having my name attached to
his property is going to affect anything
I want to do when we live just out of
state no fee unless unless he didn't pay
his property taxes okay which he does I
don't have to worry about that if he
didn't happen he could see now you're
one of the owners and if you don't pay
the property taxes you're liable right
okay you're in a partnership now with
your dad well the other question is he's
wanting he's he's got the house up for
sale actually he's trying to move and he
is wanting the problem is is that he's
trying to get a VA loan for the house he
wants to buy and he wants to take his
name off of the property to where now
I'm the sole name on this property and
that won't affect his VA loan one way or
the other you can't do the stuff he's
doing he's just making up crap he has no
idea what he's doing he's gonna create a
disaster in his own life and in your
life he needs to stop this okay
let me let me try to explain it to you
okay he's anytime an individual gives
another individual even your own
children more than $14,000 in a year
it's subject to gift tax so I can't just
give you a house if I just hand you a
house if I just you know deed a house to
you randomly whether I'm your dad or not
it's subject to a 55% gift tax of the
value of that house so he's gonna get
his he's gonna get hammered by the IRS
if they find him doing all these quick
claim deed moves that he's due
and it doesn't it's not the right thing
to do for estate planning
anyway for estate planning you're better
off to receive the house through a will
than you are by having your name on it
because of a stepped-up basis okay and
only go back to I know if they're gonna
do the tax the gift tax thing honey it's
the law they're going to the gift tax
thing he has not seen any financial
planners he's not got a tax attorney
he's just making this up I can tell so
he's not done it right so this the
transaction he did to start with is
subject to gift tax because he screwed
it up then he puts it over your name the
rest the way it's gonna be subject again
for the other half that he didn't give
you before and it's not you that's gonna
get hammered it's him but it's at the
tax rate of fifty five percent of the
value of this house so he needs to stop
this crap you can't just make up your
own laws yeah you just needs to chill
out until his house tells ya so Louis
getting and Marie nobody finds his name
on your name on the stupid thing and
don't put your name on anything else
again because it's stupid he needs to go
get on the state planning attorney and
get a will done properly okay so number
one is gift tax problem there is a way
to give you a house it's called the
unified estate tax credit but you have
to do a filing on this and I'll
guarantee you Bubba who's making up his
own laws didn't do this filing if I mean
I certainly I don't want the house or
needed you know I'm not accusing you of
anything I'm just telling you your dad's
running rogue here and he's gonna bring
lack of blessings into his own life
somewhere in curses into his own life
with this stuff so he needs to stop just
making up stuff as he goes and just
Walter who's gonna go over to help learn
name that won't know what happened and
you know that's going it's gonna if he
gets outed it it's gonna they're gonna
take his freaking head off and you he
does not want is it how does it affect
if he has he has it doesn't affect like
he owns the property but he has a home
equity loan out on it well it doesn't
get rid of his liability on the loan
because you didn't sign for the loan
right no no my name is not on the loan
the property so it you know deeding it
over to you doesn't get rid of his
liability doesn't help him qualify for
the VA once
he doesn't know what he's doing and it's
but it's not gonna hurt me next year
whenever I want to do my own no cuz your
name's not on the loan everything he I
cares about is your name on a loan okay
now here's what could happen and I don't
think it's gonna happen but if he got
foreclosed on on a no Michael woody loan
then a house that you owned has been
foreclosed on even though you don't owe
anything and you don't hear my liable on
the loan it could show up on your credit
bureau report that you have a
foreclosure right another stupid reason
not to do this okay lastly let me tell
you what I mean when I say stepped-up
basis okay just for everybody out there
listening cuz it doesn't affect you
you're not gonna do it anymore tell him
to never put your name on anything again
until he gets professional advice for
his own good not cuz we're mad at him
he's just by buying his way through this
stepped-up basis is when you die the and
you give somebody a property after death
and the will the market value is the
basis so if the house is worth a hundred
thousand you can rent four hundred
thousand there's no taxes if he gives it
to you ahead of time his basis is how
taxes are figured he paid twenty grand
for it you sell it for a hundred you pay
taxes on 80 grand
so he's nailing you for taxes on his
death by doing this - don't do this
stuff this is the Dave Ramsey show hey
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