Betting the house on tax savings

DEAR HARRY: Some time ago, you advised an older reader not to transfer ownership of her home to her child.

I don't remember the reason, or even if it was a son or daughter. I thought: "What does he know about family relations? He's a money guy." Then I had a similar situation.

In 2009, I transferred my home to my only child, a son, primarily to save the Pennsylvania inheritance tax. My estate is not big enough to meet the federal minimum. I even protected my interest by getting a long-term lease at $10 a year. Now I know why you advised against it: He's having big-time credit problems that I didn't know about until yesterday. I wanted to get him to transfer title back to me, when he told me that there are liens on the house that exceed its value. I have lived in this house almost 40 years. Am I going to be forced to move?

WHAT HARRY SAYS: You are not alone. Not that knowing that will help. I've received many similar letters over the years. Unfortunately, too many people think that they won't fall into a similar trap.

To save a small inheritance tax, they jeopardize a home they live in and love. There is some small chance that a bankruptcy can save the house, but I wouldn't bet on it. If you don't ask before you act, sadly, you learn afterward.

write to him at Daily News, 801 Market St., Philadelphia, PA 19107.