Legal Question in Real Estate Law in Texas

Gift Dead Property

My parents have gift deeded their property to my sister and myself. We live in Texas and our parents are taking the over 65 and homestead exemption, when they pass away will my sister and I owe any taxes on this property.

Asked on 11/07/12, 1:29 pm

1 Answer from Attorneys

T. Deon Warner Warner & Associates PLLC

Dear Gift Descendants,

The question you are asking is not a real estate question, it is a tax and inheritance question.

Generally, a gift is not taxable except if it is characterized by the IRS as being an inheritance gift and then inheritance gift tax laws will apply.

First, if your parents gift deeded the property to you and your sister, they are not eligible for an "over 65" or homestead exemption because they are no longer the owners. If the gift deed is treated as an inheritance transfer (which is appears that it is: i.e. them still taking their over 65 and homestead exemptions) then the question whether a tax is owed to the IRS for the gift will depend on two factors: one: what is the value of the gift and is it beneath the parent child gift exemption number and two: what other gifts have the parents given to you and your sister and will the aggregate value of all gifts exceed the "one-time" parent to child gift exemption. Please get a tax and inheritance lawyer or accountant to assist you with this issue.


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Answered on 11/07/12, 1:52 pm

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