Deed split for inheritance tax reasons?

Question

Patrick Liska · Answer

@Jeff B. thank you, forgot to put that in there, that it would have to be appraised ( not necessarily by the executor, any family member can request it,i handled it and my brother was the executor and i just gave him the report) but that would then be the basis for the property. but as @Bill Gulley said, she may need the property to handle any medical expenses, so switching owners will not help her and may hurt her.

Jeff B. · Answer

@Patrick Liska, @Mike Lightcap

"the house will be appraised for the value at the time of her passing"

Not automatically.  The executor needs to call for the appraisal.  Speaking executor,  is there a Will or a Trust???  The process is different for each of these.  Suggest you get the family to consult Mom's records and her attorney for further and authoritative information.

A change in title recording can easily invoke Sales Tax from the county if not handled correctly.

Jeff B. · Answer

You got it correct :)

Bill Gulley · Answer

@Mike Lightcap

Often we feel compelled to assist others, but in real estate, legal matters, accounting/tax matters or health matters, unless you are actually qualified to advise, it's always best to avoid giving consultation other than hand holding or giving personal moral support. Generally, such consultation requires a license as well, but there are always exceptions to neighborly type advice.

If, initially, we have a brain phart and begin making suggestions without really knowing and researching, we end up with pie on our face having to retract our initial idea that was suggested.

That's how you lose trust and confidence with others, giving advice when you're not really qualified to do so.

Your elderly recovering neighbor should not do anything, nothing, without her attorney with respect to any deed.

For one thing, her assets are probably already under a microscope from her health issues and Medicare, she may have exemptions of her assets in qualifying for health benefits. If she sells or transfers interests, she may well lose those exemptions. That would be a huge screw up!

Another thought, you mentioned your interest in buying the place, why would you trade one seller for 3 or 4? Sounds like the elderly lady has the power to sell, due to her age it is highly advisable to include relatives as to what might be going on, simply keeping them informed, but that doesn't mean complicate the matter with multiple owners!

Just be a good neighbor, no more brain pharts on giving them advice, you can help much more by simply looking in on her when she gets home, she won't be that mobile. You can also offer to relieve her caregivers, they need a break too. That's probably the best way you can help! :)

Patrick Liska · Answer

There will be no inheritance tax on the real estate, when she passes the house will be appraised for the value at the time of her passing and that will be the basis of the property. so if she passes and the house appraises for 300,000 and they sell the house for 310,000, they will only have a gain of $10,000 that they would be taxed on, but that is no where near the amount of Inheritance you are allowed before having to pay tax as @Wayne Brooks said.

Wayne Brooks · Answer

Huh?  It doesn't work that way.  Either way, there's no federal "inheritance tax" under the estate is over something like $5.7 million.

Deed split for inheritance tax reasons?

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