My Dad Is Giving Me His Property

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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