
Quoting
445orange
We are considering a transfer of our home to an adult child while retaining a life estate.
We want to minimize capital gains the remainderman would pay later.
What is the difference between transferring in a life estate and gifting in terms of how the transfer form is filled out?
We are considering a deed which includes the language "the grantors retain a life estate."
On the transfer return form, the fair market value would be listed, and transfer would be exempt from the transfer fee as a gift.
Does making the transfer a gift cause the grantee to have our basis for capital gains?
Is it correct that because we retain a life estate, the property becomes part of our estate at our deaths and is then inherited?
If yes, how should the transfer be classified?