Reverse Mortgage - After The Sale

[Eric V Harding]

My mother has moved out of her home and in her final foster care situation. We will handle selling the home for her and repaying the loan with its sale, as she has a year to pay it back before its foreclosed.

We have a living trust and power of attorney, but would like to when its sold, will there be capital gains tax on whats left?

[Winston Covington]

Quote from @Winston Covington:

This is a tough situation and you will need the advice of a good CPA.  I’m not a tax specialist but as a Realtor with over 37 years of experience, I can tell you that the Trust will provide you with a step up basis once your Mom passes away. If the house is sold prior to that, there’s a high probability that you Mom will have a tax liability. However; please check with a good CPA to see what exemptions your Mom may qualify for.  Good luck.