Estate Planning For Taxes Includes Property Inheritance

Added August 28, 2007 by Ilyce R. Glink

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Summary: With estate planning you can either leave a property to heirs through a will thus creating an inheritance, or gradually give your family members shares of the property through gifts. From a tax perspective, giving property as an inheritance is better. Another factor to consider when bequesting property is how many and which family members may be interested in the property.

Q: My parents live on a farm in Missouri and want to give it to me. I understand the tax implications are better if I inherit it rather than have it deeded to me.

But I have a deceased brother who left two children and an addict sister who may try to break the will if I inherit the farm without them. In this instance, is it better to have it deeded to me than inherit it and chance the wrath of my relatives?

A: Your relatives are going to be mad either way. What I don't understand is why you're trying to cut out your dead brother's two children. Shouldn't they inherit something from their grandparents?

You can accomplish what you're trying to accomplish with a trust and a will. The tax implications will be much better than gifting you the property now. Have your parents work with an estate attorney who knows what he or she is doing and please encourage them to write a letter to your sister and their grandchildren explaining their actions.

Aug. 28, 2007.

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