Gift of house

[dyne]

In a book entitled Die Broke the author says that a gift of property such as a house can
exceed the gift tax limitation of $13,000 for 2009 without requiring a gift tax return to be
filed. My research suggests otherwise. Does anyone know for sure?

[Roberts]

I've always been taught that technically, it is a gift. If you exchange even partial ownership in the asset, you have generated a gift.

[jimmcg]

I've always been taught that technically, it is a gift. If you exchange even partial ownership in the asset, you have generated a gift.

It would certainly be a gift however is the author contemplating using the lifetime exclusion?

[JoshinNC]

Why, exactly,

would one want to "Die Broke"?

[Jesse]

would one want to "Die Broke"?

I think it's long term Medicare planning.

[Burke]

One of my favorite quotations:

"The perfect financial plan is when the check to the undertaker bounces."

[dyne]

The book entitled Die Broke is excellent. Die Broke refers to spending one's own money
during your lifetime rather than leaving it to heirs. I agree with almost everything the author
says and recommend the book. It was published in 1997. A friend recommended the
book to me. The author is Stephen M. Pollan.

[Burke]

In a book entitled Die Broke the author says that a gift of property such as a house can
exceed the gift tax limitation of $13,000 for 2009 without requiring a gift tax return to be
filed. My research suggests otherwise. Does anyone know for sure?

There are not enough details in your post, but is this a situation where a parent is transferring a home to children (the usual case) and then is continuing to live there as their personal residence, either through a written or implied life estate? If so, it is an incomplete gift, and is still considered part of the donor's estate at death. Taxation will vary depending on whether it is sold before or after he/she dies.