How best to transfer title to real estate?

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How best to transfer title to real estate?

My father-in-law owns 2 summer homes. He wanted my husband and my daughter to each have 1. What is the best way to transfer theses homes without a lot of tax payments or loss of money to him? Can he gift the value of the home time?

Asked on October 5, 2012 under Real Estate Law, Massachusetts

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I suggest that the best way for your father-in-law to transfer title to the two properties that you have written about to your husband and daughter is for them to each enter into a purchase agreeemnt with him for a set price where he carried a mortgage (trust deed) and they sign a promissory note for the purchase.

Each year year the father-in-law then "forgives" a portion of the note equal to $13,000 or so as a gift which is allowed under Internal Revenue Service regulations until the entirety of the note is gifted away as well as accrued interest. It is best to have a real estate attorney assist in such a buy-sell structure.


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