Uncle's Probate situation

4 Replies

I'm looking to advice for my dad... Here's the quick info, my uncle passed away without a will or any estate planning.  My father and uncle plan to donate the property to the temple my uncle belonged to because they believe that is what he wanted.  The temple has agreed to pay for the probate lawyer.  There is still a mortgage on the property (no one can seem to get me this info).  The property is currently Estate Of under the property appraiser's records.  

Questions: 

~should my father and uncle require the temple to maintain insurance on the property through the probate process in case something happens?

~Are there any tax benefits/issues they should be aware of?

~No debt from my uncle can transfer to my father correct?

Any other advice would be great, I know enough about the probate process to come up with a lot of questions. lol

The temple has already agreed to pay for a probate attorney, so let him or her sort out the details.   Quick answers:

1) yes

2) every party to a real estate transaction should handle their own tax issues.   Don't worry about their tax situation unless they hire you as their CPA.    ;)

3) No, unless your father guaranteed (co-signed) the mortgage.

You may have wanted to consider letting the property pass to them personally and them both agree to make the contribution as it could result in a very large tax break for them. However, it could be a little too late for that depending upon the agreement.

Originally posted by @Steven Hamilton II :

You may have wanted to consider letting the property pass to them personally and them both agree to make the contribution as it could result in a very large tax break for them. However, it could be a little too late for that depending upon the agreement.

 May still be possible. It would either be an assignment or post-distribution transfer:

Uncle's Estate > Dad > Charity.