Personal Finance

The best way to gift property to your children

  • Last Updated:
  • Dec 15th, 2013 7:10 pm
Dec 14, 2013
1 posts

The best way to gift property to your children

I need a consultation regarding the tax optimization.
I sold the apartment oversea and like to purchase
2 houses for my children (to put 20% down with
a 80% mortgage).
The children are not ready to live independently,
that's way I am planning to use the houses as rental
for 2-5 years and later to transfer to the children.
The question is how to do it better in terms of
taxes: under my name with my husband, a corporation
or a trust?
1 reply
User avatar
Feb 15, 2008
26318 posts
Well the fundamental problem is going to be actually obtaining the loans. Do you have the income to qualify for the 2 loans at 80% LTV? Do the kids? Are they willing to take on such risk? The tax considerations really aren't much different any way it shakes.

Is this even a good idea, given the plethora of other investments out there? Why not throw your money into a good stock portfolio and call it a day? Implied returns are far greater than what you see in real estate these days. 3-5 years from now, maybe their situations will be different. Do you really know for sure that they'll want to live in your particular city, in the houses you selected?
TodayHello wrote:
Oct 16th, 2012 9:06 pm
...The Banks are smarter than you - they have floors full of people whose job it is to read Mark77 posts...