Sadly we brought my Father-in-Law home from the hospital on Sunday to begin in-home hospice care. Doctors are estimating 2 weeks. **** cancer.
Anyhow, I’d like to get some advice or perspective on how to help manage his estate. We have Power-of-attorney and a living will established.
He has two daughters and two granddaughters.
The house has about a $60k mortgage on it and is worth (my guess) about $125k. He has approximately $62k in savings. I’m not sure of any life insurance policies at this point. He has an older truck and a newer motorcycle (both with a lien). Probably not more than a couple thousand in equity between the two.
My wife and her sister have hatched a plan to “gift” the house to the oldest granddaughter. She would get a mortgage for $60k and effectively buy the house. I’m guessing the IRS will have some interest in this given the value of the home. I’d think someone will have to cover Capitol gains.
I’m thinking the entire estate should be moved into a trust where the two granddaughters are the beneficiaries and both daughters are trustees.
Or can we gift the granddaughters directly from the Grandfathers estate (bypassing children). Are there caps on this or pitfalls? One granddaughter is 24. The other granddaughter, my daughter, is 13.
Any input on how to proceed would be greatly appreciated.
Anyhow, I’d like to get some advice or perspective on how to help manage his estate. We have Power-of-attorney and a living will established.
He has two daughters and two granddaughters.
The house has about a $60k mortgage on it and is worth (my guess) about $125k. He has approximately $62k in savings. I’m not sure of any life insurance policies at this point. He has an older truck and a newer motorcycle (both with a lien). Probably not more than a couple thousand in equity between the two.
My wife and her sister have hatched a plan to “gift” the house to the oldest granddaughter. She would get a mortgage for $60k and effectively buy the house. I’m guessing the IRS will have some interest in this given the value of the home. I’d think someone will have to cover Capitol gains.
I’m thinking the entire estate should be moved into a trust where the two granddaughters are the beneficiaries and both daughters are trustees.
Or can we gift the granddaughters directly from the Grandfathers estate (bypassing children). Are there caps on this or pitfalls? One granddaughter is 24. The other granddaughter, my daughter, is 13.
Any input on how to proceed would be greatly appreciated.
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