Gifted property -beneficiary

[Ryan Davidson]

My aunt and uncle have named me beneficiary in their will. They were going to sell their primary and buy something cheaper. But have since decided to stay where they are. The property is free and clear. Property was listed for 150k and have had offers, so I believe that is a good value. A couple questions I brought up was how can we protect it for them loosing to insurance companies or medical (nursing home) with declining health? Also if they gifted to me what is tax liability on gifts? If it was gifted what options to pull the equity out would I have. I thought pulling 100k in bank mortgage to use cash for other investments, pay them a percentage for the usage and would still have approximately 700$ monthly payment on 20yrs 5.5%.

[Ashish Acharya]

@Ryan Davidson, 

It would be inherited rather than gifted. 

Very different from tax perspective if you ever decide to sell the property. 

Inheritance of the property is not going to have any tax implications until you decide to sell the house. 

After you inherit, it would make sense to rent it out, if you are up for it. Reason is you will get to depreciate the property on the steped up basis. 

Then, you can also do cash out refi with 30 year mortgages. 

For protection, one of the way is , your uncle would need to get with attorney  and set up a trust. However, they are unlikely to lose the primary residence.  Risk is very low. You should talk to attorney.