I'll sell my house this year. I think to put in a trust primarily for tax reasons.?
My wife was diagnosed with terminal cancer. Not expected to live beyond this year. We want to sell the house in California after passing product and give our children. We were told that if we put the house in a trust, to avoid paying higher rate income tax. We do not expect to make over $ 500K on the house. We bought the house for $ 225k, but now has $ 255k. One lawyer told us we can avoid most basic savings, putting the home under the trust. 1) Is this true? 2) What is the cost basis? 2) Do I have to pay taxes if we are more than $ 500K for the house?
I am not a lawyer. I had a great experience in the region. When you sell the jointly owned property with his wife and you have lived in the house for 24 months over the past 5 years there is no capital gains. To sell the property that was out of trust. Money of the sale are placed in the trust. The base cost is the amount initially on trust. Trust is a vehical to save money and invest money. The beneficiaries of the trust are those disignated, confidence can not really have another trust as beneficiary (your children or grandchildren of Trust) A trust can avoid probate and rights succession. It is recommended that all property and assets in a trust. It is easy to change (you can do with a notarized letter). It allows security for you while you try with emotional trauma. Stopped arguing with children, since everything is written exactly as you and your wife wants. Do not tell me what the other is you heritage? Please consult your attorney. Also make sure your family is to agree on what advice is your health. A trust is a form of contract for you health and his wife. This is a legal document, you decide. Others will follow this document. It is important to talk this way all members of the family understand exactly what will happen medical care as compared to palliative care. I invite you to create this with a lawyer of his choice. The cost should not exceed $ 1,000 less than other assets are patents, etc. Chris C
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