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Having a proper plan about your assets is very important. It is better that you divide your property during your life. Because there can be problems after your death. I know talking about death can be very unpleasant, but this is a fact and no one can deny this. There are certain rules which you have to follow before gifting your property to someone else. You have to be very reasonable and logical before giving it someone. There can be very uncomfortable consequences if taken the wrong decision. To help you in this matter, some rules of gifting your property are understated so you can take the right decision.
Property is one of the important asset in families. And by this property I mean your residence, the place you live in. However, if you have a huge amount of assets and you have kids, then it is beneficial because this way you can give your property to them. This whole procedure is very valuable. There are many ways of giving gifts to the members of your families. You can give them in cash form or in the form of property. When you gift your property to your loved ones, you are basically receiving nothing in return but one thing for sure is that you are reducing the amount of taxes on you. This is how it works. You gift your asset like home, apartment, or something else which is taxable to your loved ones and reduce your taxes. Living in Hawaii means that you have to go according to the rules of the state. So, there are many ways of gifting your property to the deserving heirs. One way is to give the property to your kids. Kids are considered to be the true heirs of the family. So, if you have enough property, divide it between your kids. You can give the property to your kids anytime in your life. But you have to pay the taxes if your property comes under the estimated value. Every method has its shortcoming with it. The above mentioned method has two minor problems. One of them is that this way will affect the later sale of the property. This problem is very minor. You can totally ignore it if your intentions are to keep the house forever.
The other method of gifting property is to sell it to your heirs on low price. This is the ideal method in many ways. Let’s suppose if your house costs more than $50,000 and you sell it to a stranger in $25,000 you have surely made a bad move. You have put yourself in lost. But if your house has the same cost, but the person you are selling the house is your son or some relative, you are not making a bad move. You are gifting the property and this makes a lot more sense than selling it to a total stranger on low price. Hawaii deals with the same problems and have made rules which are followed strictly.