My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?

my aunt 95 yrs old just sold her home for 470,000 and will use some of that money to payoff my mortgage of 116,000 and two other bills of mine that are 14,000 each and move in with me so i can take care of her, she has also named me the trust of her estate, she and I would like to keep the IRS from getting in our pockets as much as possible.My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
It's simple enough to avoid the tax but this needs careful planning. If your aunt has other assets some careful estate planning is essential. CPA's and estate attorneys cost money but if you take the time to find a good one of each it will cost you far less than any tax bill would if you do it wrong.





The simple advice is to let her pay off the mortgage and other bills and file a Gift Tax return (based on what you have said, no tax will be due) but it may cause more tax to be paid on her death. All that achieves is an interest-free loan from Uncle Sam. That is why good advice specific to her situation is well worth the money in this case.My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
There are a lot of different way to go about reducing your and her tax liability. But without more information about her other income and yours, it is difficult to assess. So I agree with the others, you should consult a financial planner. For example, it could be beneficial to have her as the owner of your house. Again, without all the numbers it is difficult to make proper assessment.





My advice on financial planner is to find a fee only advisor instead of ones from big names (like American Express, Prudential etc.) The big name people has bias opinion and want to sell you their products, thus not able to give up subjective advice.





One thing to start with, she can give you $10k a year with no tax consequence to you.





Best wishes.
Your aunt can BUY an interest in your house that will cover your mortgage and the bills. This is not subject to gift tax or income tax. She can then GIVE you up to $12,000 of her share of the house per year with no gift tax consequences. If you are married, she can give you and your $12,000 each per year.
If she is moving in with you the term ';expense reimbursement'; springs to mind. You really should sit down with a good tax preparer/accountant quickly and lay your cards on the table and do some financial planning. It won't cost much and what it does cost will be more than made up by the money you will save in taxes.