What are the tax and legal ramifications of a quitclaim deed?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are the tax and legal ramifications of a quitclaim deed?
My dad wants to sign his house over to me. It is a house that his parents willed to him and it is paid for in full. He is divorced and paying alimony. He was laid off work and is only able to pay a portion of his alimony payment. His ex wife is threatening to put a lien on his house. Will this quitclaim deed cause any tax or legal issues for me?
Asked on July 9, 2012 under Real Estate Law, Alabama
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The quit claim deed that you have written about where if signed by your father and recorded disclaiming all rights he may have in the property to you will not in and of itself cause any tax ramifications to you other than the fact that you would be obligated for property taxes and all recorded liens on the property. However, there could be some gift tax ramifications as to your father if the equity in the property is more than $13,000.
I suggest that you and your father consult with a real estate attorney to discuss a structured transfer of ownership in the property to you over time in an amount of $13,000 per year via fractionalized interest quit claims or grant deeds so as to avoid possible gift tax issues as to your father.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.