FMV Conveyance

[Nashville]

Is there any other circumstance whereby a parent can convey property directly to a child at FMV other than:

a) outright sale at FMV.
b) decedent's estate.

[erchess]

I only know this

The outright sale can be structured in such a way that the parent has the right to live in the house as long as he or she lives and is able and I believe that it can be structured in such a way that the child can't set foot on the property without permission while the parent is using as his or her main home.

[Nashville]

Yes. but

Yes but if such an arrangement is consummated, will the heirs have stepped-up basis?

[erchess]

I think

their basis would be what they paid for it which might of course be more or less than its value when they are able to take possession.

[solomon]

Google either Lady Bird Deed or Enhanced Life Estate Deed. If your state permits something like one of these, then it should work.