January 25, 2013 (Press-News.org) House-swapping and lifetime gifts as money-saving options
In this difficult economic landscape, most families are trying to find ways to save costs in major areas of expenditures such as buying a house or estate taxes. Two possible solutions are house-swapping among family members to avoid realtor's fees and using life-time gifts to children as a means of avoiding overly burdensome estate taxes.
House-swapping
House swaps are when family members buy each other's homes in order to meet changing needs and to avoid realtors' commissions and other fees. For example, an older Chicago couple who was looking to downsize while their daughter and her family were looking for a home with more space, swapped their spacious house for the daughter's condo.
The older couple got the no-maintenance lifestyle of condominium living within a short distance to a lively downtown district while the daughter's family was able to move into a large house with a yard that better suited their needs. Buying each other's properties also ensured that the older couple's beloved home stayed within the family.
There is no hard data on the number of people who are swapping homes, but the National Association of Realtors says the trend is taking off, especially as baby-boomers are getting ready to retire.
However, people considering house-swapping should make sure they are educated about the legal and tax obligations. For example, the IRS looks very closely at home sales between family members due to the potential for fraud. Family members can offer a discount to each other, but they must make sure that the reduced house price is one that is deemed fair in the view of the IRS. In doing so, all parties should carefully appraise their properties and involve a CPA, an attorney and a financial advisor.
Each side, under federal law, can still benefit from a certain amount of tax-free profit from the sales of their primary homes.
Gifts as a way to reduce estate tax burden
The children, not the parents, are the ones saddled with the burden of estate taxes since estate taxes do not vest until a property owner's death. If parents wish to spare their children some of this cost, one option they can pursue is to gift their children money during their lifetimes as part of their estate planning.
Each individual parent can give $14,000 tax free to each donee annually and, thus, take that money out of the estate monies that would be taxed later. Therefore, a couple together can give each child or grandchild a total of $28,000 annually. Parents can also make tax-free gifts by paying directly for a child or grandchild's tuition costs or medical expenses.
When looking at estate planning and other options that will fit your family's specific needs, it is wise to consult an attorney experienced in these matters. An attorney can help you to understand and navigate these processes.
Article provided by Jean Galloway Ball, P.L.C.
Visit us at http://www.uselderlaw.com
House-Swapping and Lifetime Gifts as Money-Saving Options
In this difficult economic landscape, most families are trying to find ways to save costs in major areas of expenditures such as buying a house or estate taxes.
2013-01-25
ELSE PRESS RELEASES FROM THIS DATE:
State Police Advise Illinois Motorists to Stay Safe this Winter
2013-01-25
State police advise Illinois motorists to stay safe this winter
With the winter driving season in full force, parts of Illinois and the Midwest have already experienced major snowstorms, bringing with it icy and slippery roads. In order to lessen the risk of being involved in a car accident, the Illinois State Police are advising drivers to take proper precautions when driving during adverse weather conditions.
State officials encourage Illinois motorists to take extra care when driving on icy or snowy roads and to allow for extra travel time. In addition, winter ...
Getting a Mortgage Loan after Bankruptcy
2013-01-25
Getting a mortgage loan after bankruptcy
Even after filing bankruptcy, a person may still be eligible to be approved for a mortgage loan. A record of the bankruptcy can remain on the filer's credit report for up to 10 years. Although many people believe the myth that they will never be able to obtain a mortgage after filing bankruptcy, in reality, filers can be approved for mortgage in as little as one year after a bankruptcy.
A mortgage loan can be approved in as little as one year after bankruptcy
The amount of time it takes for someone who filed bankruptcy to ...
2013 Brings Sweeping Changes to Florida's PIP Law
2013-01-25
2013 brings sweeping changes to Florida's PIP law
In Florida, every driver is required to carry personal injury protection auto insurance, also known as no-fault insurance or PIP coverage. This insurance is designed to cover reasonable medical expenses and wage loss stemming from a car accident injury, regardless of who was at fault in causing the crash.
Florida's PIP system has long been the subject of significant controversy. Advocates say that PIP coverage provides an important safety net, and that a generous interpretation of the terms of coverage is necessary ...
Dealing with the Financial Fallout of Childhood Illnesses
2013-01-25
Dealing with the financial fallout of childhood illnesses
To a parent, there is nothing more terrifying than learning your child has a serious or life-threatening illness. For nearly every parent, protecting their child's life and health is their most important priority. Parents of sick children often sacrifice everything to help their kids get the treatment they need.
Unfortunately, though, treatment for childhood illnesses usually comes at a great expense. When a family's resources are diverted toward paying for a child's medical care, it is not uncommon for the ...
Despite National Decline, California Traffic Deaths on the Rise
2013-01-25
Despite national decline, California traffic deaths on the rise
In 2011, the number of fatal collisions nationwide dropped to its lowest point in over 60 years. According to federal transportation data, 32,367 people were killed in traffic accidents in 2011. This figure represents a 1.9 percent decrease from 2010. Although the federal figures are on the decline, not all states are experiencing individual declines. In fact, only 36 states have experienced a decrease in fatal automobile collisions.
In addition, despite the national decrease in fatal collisions, pedestrian ...
Child Custody after Divorce in Indiana
2013-01-25
Child custody after divorce in Indiana
For parents going through a divorce or separation, questions about child custody and visitation rights often weigh heavily on their minds. In these situations, it can be helpful to know how the Indiana courts handle issues of parenting time and what options are available for parents and children after divorce.
The best interests of the child
As a general matter, judges in Indiana are required to rule on child custody and visitation matters according to the best interests of the child. This means that the child's well-being ...
Survey Finds More Drivers Surfing Web While Behind the Wheel
2013-01-25
Survey finds more drivers surfing Web while behind the wheel
Cellphones that double as mini-computers and allow you to remain constantly connected to your friends and family via email and social networking sites have many benefits -- a wealth of knowledge at your fingertips, easily accessible from any location where you can connect to your network. As a result, these days few people leave home without their smartphones.
As people have become more accustomed to using their cellphones for a wide array of activities, it has become harder for them to put their phones ...
Student Loan Debt a Growing Problem in California
2013-01-25
Student loan debt a growing problem in California
Right now, a college education is more important that it has ever been. With the manufacturing sector on the decline, it has become increasingly difficult for young people to find career-track jobs with only a high school education.
Unfortunately, a college education is also more expensive than it has ever been, leaving many struggling with debt. In the wake of the recession, state governments have cut appropriations to their higher education systems, leaving students to shoulder a greater percentage of the cost of ...
SSA Adds to List of Social Security Compassionate Allowances Conditions
2013-01-25
SSA adds to list of Social Security Compassionate Allowances conditions
Applying for Social Security Disability benefits can sometimes be an arduous process. In most cases, the Social Security Administration requires disability applicants to provide significant proof that their disabling condition will prevent them from working for at least one year. The process can be even longer if the SSA denies the initial application, requiring the applicant to pursue an appeal.
This process can be frustrating for nearly any applicant. However, it is especially troubling for ...
Receiving Coverage under Washington's Workers' Compensation Plan
2013-01-25
Receiving coverage under Washington's workers' compensation plan
Being injured on the job is no picnic for Washington residents or their family members. Fortunately, the state's workers' compensation system gives workers the support they need to get back on their feet and back to work.
Coverage of health care services
When workers make a claim for a work-related injury or occupational disease, workers' compensation will pay their medical bills while they recover. Workers' compensation will be responsible for bills from all health-care providers, hospitals, surgical ...
LAST 30 PRESS RELEASES:
Call for papers: 14th Asia-Pacific Conference on Transportation and the Environment (APTE 2025)
A novel disturbance rejection optimal guidance method for enhancing precision landing performance of reusable rockets
New scan method unveils lung function secrets
Searching for hidden medieval stories from the island of the Sagas
Breakthrough study reveals bumetanide treatment restores early social communication in fragile X syndrome mouse model
Neuroscience leader reveals oxytocin's crucial role beyond the 'love hormone' label
Twelve questions to ask your doctor for better brain health in the new year
Microelectronics Science Research Centers to lead charge on next-generation designs and prototypes
Study identifies genetic cause for yellow nail syndrome
New drug to prevent migraine may start working right away
Good news for people with MS: COVID-19 infection not tied to worsening symptoms
Department of Energy announces $179 million for Microelectronics Science Research Centers
Human-related activities continue to threaten global climate and productivity
Public shows greater acceptance of RSV vaccine as vaccine hesitancy appears to have plateaued
Unraveling the power and influence of language
Gene editing tool reduces Alzheimer’s plaque precursor in mice
TNF inhibitors prevent complications in kids with Crohn's disease, recommended as first-line therapies
Twisted Edison: Bright, elliptically polarized incandescent light
Structural cell protein also directly regulates gene transcription
Breaking boundaries: Researchers isolate quantum coherence in classical light systems
Brain map clarifies neuronal connectivity behind motor function
Researchers find compromised indoor air in homes following Marshall Fire
Months after Colorado's Marshall Fire, residents of surviving homes reported health symptoms, poor air quality
Identification of chemical constituents and blood-absorbed components of Shenqi Fuzheng extract based on UPLC-triple-TOF/MS technology
'Glass fences' hinder Japanese female faculty in international research, study finds
Vector winds forecast by numerical weather prediction models still in need of optimization
New research identifies key cellular mechanism driving Alzheimer’s disease
Trends in buprenorphine dispensing among adolescents and young adults in the US
Emergency department physicians vary widely in their likelihood of hospitalizing a patient, even within the same facility
Firearm and motor vehicle pediatric deaths— intersections of age, sex, race, and ethnicity
[Press-News.org] House-Swapping and Lifetime Gifts as Money-Saving OptionsIn this difficult economic landscape, most families are trying to find ways to save costs in major areas of expenditures such as buying a house or estate taxes.