Legal Question in Real Estate Law in California
Property
My parents have some property in Palm Springs, CA and In is in their will for me when they die, but I would like to know if they can give it to me before that time. My mother tells me they cant give it to me they would have to sell it to me.This doesn't sound right to me. My father is ill and could pass in the next 2-3 years. Can they give the property to me if they choose to or do they have to sell it to me???
4 Answers from Attorneys
Re: Property
There could be negative estate tax AND income tax problems if they give it to you now.
Re: Property
They can give it to you, but the concern your mother may be articulating may have more to do with Medicaid Planning issues than tax or other concerns.
In Washington there is five year look back on transfers, that is that should either parent wind up with Medicaid assistance (i.e. nursing home care) after having given you the property, the state can come after you to recover. California's laws on Medicaid, when last I reviewed are significantly more flexible in allowing one spouse to retain assets while the other receives medicare benefits. If your parents are residing in California then you will want to consult an Elder Care law attorney licensed in California to assist you and your parents in structuring the transfer be it by sale or gift.
Your Mom is probably giving you the straight up story and you will probably need to purchase if you want to gain possession of the property now as opposed to later when it may no longer be available for whatever reason.
My condolences to you on the difficult situations facing you and any siblings you may have and your Mom as your Father continues to face a decline in health.
Re: Property
First of all, your parents can change their wills a hundred times before they die; simply being an heir at one time or another does not give you any rights. Secondly, unless they die simultaneously, the fact that your father is ill does not mean your mother will die during the same timeframe, and presumably she will succeed to whatever your father owns at his death. Lastly, it would be better for an heir to take by will (from a tax standpoint) than by a purchase or even a gift while the grantor is alive. However, to answer your question, they COULD give to you now IF they want, but if you were my greedy kid, I would change my will and not tell you about it. Shame on you for badgering your parents.
Re: Property
Ms. Deming nailed her answer to this question.
What your parents choose to do with their property is up to them, and they can leave it to a charity if they want. There is no appropriate mechanism to tell an ancestor what you would prefer they do with your possible bequest.
It is their tax planning issue. Let it go.
Elizabeth Powell
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