Farm Succession / Inheritance Question

[sixdogs]

Are you asking for his advice or just telling him what you want?
Does he understand tax implications?

 

[California]

That's a good suggestion.

Settling Dad's estate (everything had been dumped into a Trust), the attorney who had written the trust sent the paperwork and then me over to a $175/hour CPA to explore tax consequences of alternate choices. Neither claimed expertise in the other's specialty.

 

[2LaneCruzer]

I am going to make an appointment with a lawyer to discuss options.
But so far I will be looking at the following fees:
Lawyer Fee - to transfer names on to ownership($700-1200)
Land Transfer Tax - ($3000)
Admin Fee from Bank to add name(s) to Mortgage -($300-$500)

These are all estimates. The land transfer tax is the kicker

Make sure you check out the advantages of having your wife added as a tenant in common.
That should be easy and cheap, and the title passes automatically up on the death of the other tenant. All it requires is a severance of joint tenancy, and the transfer tax may not be applicable until the last tenant dies.

 

[JamesHW]

Make sure you check out the advantages of having your wife added as a tenant in common.
That should be easy and cheap, and the title passes automatically up on the death of the other tenant. All it requires is a severance of joint tenancy, and the transfer tax may not be applicable until the last tenant dies.

It gets complicated and can vary by municipality or country, but my understanding is...

Tenants in common = The shares in ownership are separate from one another. So one owner can transfer his or her share to someone else at any point in time without the consent of the other owners. Tenants in common do not have a right of survivorship. Tenants in common may hold unequal interests.

Joint tenancy = Rights of survivorship, i. e. The rights of survivorship imply that upon the death of one owner, his or her share is transferred automatically to the surviving owner. The survivorship rights take precedence over the deceased's will or inheritance rules. Joint tenants own equal shares of the property.

Tenants by the entirety = A tenant by the entirety may not sell or give away his or her interest in the property without the consent of the other tenant. Tenancy by the entirety is a form of joint tenancy that is available only to a Husband and Wife. Tenants by the entirety own equal shares of the property.

 

[2LaneCruzer]

It gets complicated and can vary by municipality or country, but my understanding is...

Tenants in common = The shares in ownership are separate from one another. So one owner can transfer his or her share to someone else at any point in time without the consent of the other owners. Tenants in common do not have a right of survivorship. Tenants in common may hold unequal interests.

Joint tenancy = Rights of survivorship, i. e. The rights of survivorship imply that upon the death of one owner, his or her share is transferred automatically to the surviving owner. The survivorship rights take precedence over the deceased's will or inheritance rules. Joint tenants own equal shares of the property.

Tenants by the entirety = A tenant by the entirety may not sell or give away his or her interest in the property without the consent of the other tenant. Tenancy by the entirety is a form of joint tenancy that is available only to a Husband and Wife. Tenants by the entirety own equal shares of the property.

You're absolutely right. JOINT TENANCY is the correct term; I knew better. Guess it's my old timer's coming to the forefront.

 

[SARG]

In the USA ... the deed can be changed to what they call "Life Estate" .... so at the owners death the property goes to the named recipients. No taxes or probate involved at all. Everything stays the same with the owner ... they still control everything until their death & then the ownership is "handed down".