Looking to Transfer Property to Your Kids Tax-Free? Our Monroe, LA Estate Planning Attorney can Help.
If you are looking for creative ways to transfer property to your offspring without a punitive tax burden, you have come to the right corner of the web. Our Monroe, LA estate planning attorney knows how to reduce or eliminate your tax burden when transferring property to your kids. Here’s a sneak peek at how we help our Monroe clients avoid real estate transfer taxes without breaking the law.
Put the Property in the Trust
Niswanger Law can help you create a trust to leave property to your children without the burden of taxes or the probate process. Our estate planning attorney will help you create a trust. Once created, the property is titled in the trust’s name. Your children are then named beneficiaries.
This approach ensures you don’t have to bother with gifting the properties to your kids. Owning the land and homes in a trust bypasses the probate process without spurring a tax liability. Furthermore, using a trust to transfer property to your kids does not add the property’s value to the trust, ultimately preserving the exemption amount for additional properties. A bonus is the property does not pass on with the “step-up” basis to the current market value, meaning your kids won’t have to realize capital gains that spur even more taxation.
Consider the Merits of a Qualified Personal Property Trust
Qualified Personal Property Trusts, or QPRTs, for short, is another tool Monroe, LA parents can use to pass on their property to children without saddling them with taxes. Lean on our estate planning attorney to help you put your property into a QPRT, and the gift will be made to your children in time during which you have the right to remain within the residence for a specific number of years.
IRS rules determine your right to be a resident of the home. Our estate planning attorney in Monroe, LA, has all the details. Once the term ends, you can continue to live in the home and pay rent to your kids, thereby decreasing your taxable estate. However, the house will not be included once you pass away.
A Life Estate
Let Niswanger Law create a life estate on your behalf and you will essentially pre-gift your house to your offspring yet still have joint ownership. This approach empowers you to retain complete ownership of the property until the point at which you pass away. The property is then transmitted to the named beneficiaries. The only potential hurdle with this approach is it can create issues if you decide to lease the home or sell it down the line.
Schedule a Consultation With Niswanger Law
If you are looking for strategic ways to sidestep taxes within the confines of the law, look no further than our estate planning attorneys in Monroe, LA. Schedule an initial consultation with Niswanger Law, and we will reduce your tax burden with creative estate planning and other legal tools. You can contact our Monroe, LA attorneys by phone at 318.953.0071 or through our online contact form.
