My house is in a family trust. My mother in law is the trustee. We have been paying the mortgage for 18 years. Can we buy it for the balance, and have her gift the equity to us without incurring any taxes?
1 Answer from Attorneys
This answer is for informational purposes only and is not in any way to be considered legal advice or the formation of an attorney-client relationship.
I do not believe your mother in law can gift the equity to you without paying the taxes. The trust is like a corporation, it is its only entity and has its own rules that apply. You should be able to buy the house from the trust, especially since you have been paying for it for so long. But as for avoiding taxes, that seems impossible. But again, this is for informational purposes only.