Legal Question in Tax Law in Pennsylvania

My mother in law would like to purchase a home for my husband and I. The home costs $470,000. She is planning to purchase the home in full (no mortgage) and simply put our names on the deed. I've been told various, little to many consequences of this very generous "gift" Is it possible to receive this home without having to pay an astronomical amount in taxes or possibly no taxes at all?


Asked on 8/06/09, 4:36 pm

1 Answer from Attorneys
Solomon Weinstein Solomon Weinstein, Esquire

It is possible that the property can be gifted to you though your motherin law may have to file a gift information return and claim her lifetime exemption. Providing that the total gifts she has made in her life due not exceed the appropriate exemption then it may pass with out gift tax consequence. The issue would be if she died within a short time of the gift or if she had to go into a nursing home facility within the applicable time periods of the transfer that issues could ensue. Also you did not indicate if there are other family members involved w3hich could cause some issues. There are also other complex issues which may mitigate against making the transfer. I would reccomend your motherin law seek legal advice befoore making the transfer.

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Answered on 8/13/09, 5:54 pm


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