Dakota
04-02-2009, 03:00 PM
This question is in regard to Pennsylvania real estate law.
My grandmother owns a home in PA and she wanted to gift her home to her daughters; however, I was told that if she gifted the property and if she would pass away within 3 or 5? years that her daughters would still be subject to inheritance tax on the property. So I was suggesting that she sold her home to her daughters for a certain amount and due to the fact it was a parent to child transaction the transfer tax would be exempt. Also by selling her home to her daughters and if she would happen to pass away in a year they would not be subject to inheritance tax. Can anyone suggest if this would be the better route to go?
Also my grandmother just wanted to transfer her home to her daughters for $1.00; however, I don't think legally that she could do this. So I also suggested that we see what her fair market value is on her home and multiply it by the common level ratio to get a consideration amount. I figured that amount would be alot lower than setting a selling price. Is this true?
Any help or suggestion on this matter would be greatly appreciated. Thank you.
My grandmother owns a home in PA and she wanted to gift her home to her daughters; however, I was told that if she gifted the property and if she would pass away within 3 or 5? years that her daughters would still be subject to inheritance tax on the property. So I was suggesting that she sold her home to her daughters for a certain amount and due to the fact it was a parent to child transaction the transfer tax would be exempt. Also by selling her home to her daughters and if she would happen to pass away in a year they would not be subject to inheritance tax. Can anyone suggest if this would be the better route to go?
Also my grandmother just wanted to transfer her home to her daughters for $1.00; however, I don't think legally that she could do this. So I also suggested that we see what her fair market value is on her home and multiply it by the common level ratio to get a consideration amount. I figured that amount would be alot lower than setting a selling price. Is this true?
Any help or suggestion on this matter would be greatly appreciated. Thank you.