Lawyer Huang Huili’s legal mailbox (18)

Lawyer Huang Huili’s legal mailbox (18) 1. I want to gift real estate to my children. Because I am old, I must consider this legal issue. What are the ways to gift real estate? …

1. I want to gift real estate to my children. Because I am old, I must consider this legal issue. What are the ways to gift real estate? Answer: The first way is to maintain the status quo. Many people want to live in their own homes for the rest of their lives. Since the estate tax exemption amount in 2012 is 5.12 million yuan, if you die this year, the tax base of the house will be the market price at that time. As long as the house price is lower than the exemption amount, the children will not need to pay any federal estate tax. The second way is to give it to a child. You can move out of your own house and give it to your children. However, parents may have to use the $5.12 million gift exemption. Parents can give each of their sons and daughters-in-law $13,000 per year, and together they can give $51,200 per year without any gift tax. If the total assets are less than 5.12 million yuan, there is no need to worry that this gift will affect future inheritance taxes. However, this approach has two drawbacks. One, the child’s property tax base will be the original cost of the property. If the children later sell the property, it may increase in value a lot, and they will have to pay a lot of taxes. 2. The parents have used up some of the inheritance tax exemption. The third way is to sell at a low price. If you sell your house to a stranger at a low price, even if you suffer a loss, the IRS will not care. However, if the house is sold to a relative, the result will be different. The difference between the selling price and the market price is the price of the gift. The fourth way is to sell at market price and parents lend money to their children. In addition to selling the house at a low price to the children, another way is to sell it at market price but the buyer pays in installments. This method is often better than selling at a low price. This IOU needs to be formal. Clearly state how much you will pay each month. Parents are charged interest at least equal to the federal loan. As long as you make sure that the IOU is set up in accordance with legal procedures, your children will be able to pay the mortgage interest.

2. Question: My mother has applied for immigration for her younger brother and his family in mainland China. However, because my mother’s younger brother and younger siblings are in poor health and are seriously ill and unable to immigrate, my mother wants to adopt her younger brother’s son. The child will be 14 years old at the end of this year. How can I apply for adoption in mainland China and the United States? What information is needed? How much does it cost to adopt? Answer: 1. According to the Hague International Adoption Convention, application for adoption of a child must be made before the age of 16; however, Chinese law stipulates that adoption should be completed when the child is 14 years old. 2. If your mother wants to adopt her brother's child, she may need to apply in China. The only reason for adoption must be that the parents are in poor health and cannot take care of the child. Your mother may need to seek legal advice in China and apply as soon as possible in order to meet China's requirement that adoption procedures be completed before the child turns 14. 3. Once your mother completes the adoption procedures in China, she does not need to apply for adoption in the United States. Unless the child has entered the United States, your mother can apply to the court for adoption in the United States. Generally speaking, in the United States, to enjoy the adoption benefits of immigration law, the adoption must be completed before the child is 16 years old. Generally speaking, the adoption procedures in the United States are not complicated, but how to get the child to enter the United States is very difficult. Your mother must live with the child for 2 years before she can apply for a green card for the child. 4. Generally, the waiting period for applying to adopt a child in China is about eight months to one year. You can consult a local lawyer for the cost.