You have owned a piece of property for years in Flushing, Far Rockaway, NY, and the surrounding areas, but now you are looking toward the future, and you want to be able to pass on this property with a minimum of headache. The use of a gift deed is one option that many property owners aren’t aware of, and to do it properly will require assistance from the Law Offices of Aaron I. Katsman, P.C. While a gift deed is a good way to avoid probate when someone passes, it can also cause issues if not done properly, and it may create new problems if done for the wrong reasons or in the wrong way. There are also tax planning implications with a gift deed, and it is often used as a way to transfer wealth to other family members. Understanding what goes into a gift deed and executing it properly are what our team specializes in, so contact us today to learn more about how to use a gift deed and what it might mean for your future.
Not A Monetary Transaction
Gift deeds are not about providing a discounted rate to someone, but rather that the donor is freely giving the property to the donee without any money changing hands. If money is involved, it is treated as a sale instead. By recording a gift deed, the important details are recorded for each party involved, including the value of the property. And there may be tax implications depending on the value of the gift involved.
An important note with gift deeds is that the recipient does not receive a step up in the basis for the property, such as a house. The recipient will use the same basis as the donor has when they purchased the property, and this means that if or when the donee sells the property, they may realize significant capital gains on that sale that could result in a significant tax bill.
Attorneys Help to Do Things Properly
Whether the property being gifted is to a family member, a nonprofit organization, or other entity, it is important that the gift deed be properly filled out as well as filed with the appropriate agency. Our team can help go through the gift deed document to ensure that all parts are filled out by the gifter and recipient and that it satisfies the reasons for doing the gift deed, be that estate planning purposes, charitable giving, or other reasons.
Whether it is tax planning purposes, asset protection, or other reasons in Flushing, Far Rockaway, NY, and the surrounding areas that you want to use a gift deed, working with the Law Offices of Aaron I. Katsman, P.C. will mean that the paperwork will be properly filled out and registered with the right people. Contact our team today to learn more about the importance and implications of using a gift deed.