Tax question - My life partner and I are not married. We live in a 2 family home that she owns. 2nd floor is occupied by [View all]
her step daughter & family. We share expenses but do not charge rent.
As we age on, we want to sell the house to her at a substantial discount in exchange for life estate for the both of us. Since I own no share of the house, would my part of the life estate have tax consequences?
THEN --
She will take the proceeds, around $300k and invest in index funds so as to give us some money to enjoy life. We do not have expensive tastes in anything. She drives a 2013 Kia (that the grandkids make fun of her for). The rest would be inherited by the kids.
Question: If she adds me on the index accounts as Joint Tenant With Right of Survivorship (JTWROS) would there be tax consequences with this plan since I would be contributing nothing?
OR. -- just better to list me as beneficiary, with kids as secondary beneficiaries?
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