If you have received a sizable inheritance, you may want to protect that money from possible claims from your current spouse or future spouse. To keep your inheritance separate, you'll need to make sure that those funds are always kept in their own account, never commingled and you never use marital…
Inheritance Can Help Pay Off Credit Card Debt, Improve Credit Score
If you receive a cash inheritance, one of the smartest things you can do is pay off your credit card debt. By paying off your credit card debt you will improve your credit score by having more credit available. Paying off your credit card debt with a cash inheritance will provide the most benefit to…
Under the rules for joint tenancy with rights of survivorship, you should be able to receive the property that you already co-own and continue paying on the mortgage if the other co-owner passes away. The due on sale clause in most mortgages should not be triggered if the property passes to your…
Estate Planning Can Help Avoid Capital Gains Tax
Proper estate planning will help you avoid paying long-term capital gains tax when you sell inherited property. If your relatives plan with an attorney or tax advisor for how they would like their assets to be distributed, you can avoid paying unnecessary taxes on your inheritance and assets.
8000 Tax Credit First Time Home Buyer Requirements: Buying From A Relative
To qualify for the first time home buyer tax credit, you must follow the 8000 first time home buyer tax credit requirements. There are specific rules against buying a house or receiving a home as inheritance and qualifying for the 8000 first time home buyer tax credit. If you buy a house from a more…
$8,000 First Time Home Buyer Tax Credit: Trying to Buy and Inherit a Home At The Same Time
The first time home buyer has all kinds of restrictions: income, how long you must live in the home, how long you couldn't have owned a home and who can sell you the home. There are even restrictions on whether you can qualify for the $8,000 first time home buyer tax credit if you plan to rent the…
Revocable Living Trust Causes Confusion For Beneficiaries
A revocable living trust causes confusion for the beneficiaries. The settlor of the trust, or the maker of the trust, wanted to divide his assets equally among his children after his death. Now the beneficiaries of the trust, which include the trustee of the trust, don't know how to divide the…
Should Children Expect an Equal Inheritance From Their Parents?
The one thing children look to their parents for is support - both emotional and financial. When parents die, children expect that if there is an estate, they will inherit at least the vast majority of it. Should all children expect to inherit their parents' estate equally?
A ThinkGlink.com reader…
Tax Treatment of Inherited IRA: Subject To Taxes
If you inherit an IRA account, you have some choices with what to do with the money and the tax treatment you receive from teh IRS. In some cases, if you do nothing, your money will be subject to federal income taxes. If you roll the money over into a new IRA account you can avoid paying taxes right…
Using a Quit Claim Deed Will Transfer Title And Nullify Your Wishes in Your Will
If you own a property and use a quit claim deed and later record that quit claim deed transfering title to someone while you're alive, how does that affect the terms of your will after you're dead? Does using and recording a quit claim deed before you die nullify the terms of your will? A reader…
Inheritance Taxes Depend On Estate Structure
When you receive an inheritance, you may be wondering how it will be taxed. The amount of taxes you pay depends on the total amount of the estate: if it's less than $3,500,000 then you won't have to pay federal estate tax. Inheritance taxes also depend on the structure of the assets; investments…
House Inheritance Question May Require Estate Attorney
When a homeowner dies and it's unclear who inherits the home it may mean you need to hire an estate attorney. If you cannot afford to hire an estate attorney to help you sort out inheritance issues, you may seek assistance from a local legal aid clinic. It's difficult to resolve a complex house…
Estate Taxes Depend On Value And Type Of Assets
When you inherit assets from a family member you may owe estate taxes on them depending on the total value of the estate and the types of assets in the estate. Heirs can inherit tax-free up to $3.5 million in assets in 2009. But if the inheritance includes tax-deferred retirement accounts such as a…
Home Sale Proceeds Go To Life Estate Owner
As you get older you may decide to put your assets in a life estate, in order to protect them and to make ends meet. When an asset that's part of the life estate gets sold, the life estate owner receives the proceeds, but the sale is only valid while the life estate owner is alive. After the life…
Partnership Agreement Ensures Estate Planning Wishes
When you're buying a home with a partner but you're not married you may be concerned about protecting each of your interests in the property. A partnership agreement drawn up by a knowledgeable estate planning attorney can help. The partnership agreement will spell out who gets what in terms of…
Who Pays Taxes On Inherited Real Estate?
If taxes are owed on the sale of inherited real estate, they are typically paid by the estate. A determined amount of inheritance can be passed down tax-free. If inherited property is kept for six months or more before selling, taxes may be owed on the profits.
A reverse mortgage is a loan against the property. When the property is sold, the reverse mortgage is paid off from the proceeds. The lender doesn’t usually acquire equity in a reverse mortgage.
Taxes Owed On Inherited Property
Taxes on inherited property are paid by the estate. If the inherited property is owned for a year or more and then sold, long-term capital gains tax will be owed. But taxes shouldn’t be owed on inheriting the property itself.
The Logistics Of Receiving An Inheritance
Because inheritance is different than income, it shouldn’t need to be reported on income taxes. Most states have a determined amount that is allowed to be passed down and inherited tax-free. Comingling inheritance in a joint account between spouses makes the inheritance marital property.
Will Stipulates Inheritance Details For Home's Contents
Are a home's contents included in an inheritance? They're separate from the building itself and to ensure that a home's furnishings and other contents go to the heirs you want you should have a will. The will can stipulate who gets what and has what rights to the contents of a home after the owner…
Estate Must Make Mortgage Payments, Not Heirs Of Inheritance
When you inherit property with a mortgage, paying off that mortgage loan is the responsibility of the estate, not the heirs. If the estate lacks the money to pay off the mortgage and the bank decides to foreclose, it should not negatively affect the credit histories of the heirs. While the heirs…
Missing Will, Title Make Getting Loan Difficult
When you inherit a home you may decide to put your name on the home's title with the help of an attorney. What if the attorney you hire to help you with the title loses the documents that prove you own the home, including the will and the title? You may have to contact the local courts to ensure…
How do you make decisions on investing or spending an inheritance? Is it better to receive an inheritance or a gift? How can you ensure your inheritance is protected? We answer questions about what to do when you've received an inheritance.
Inheritance Timeshares: How To Resell
If you are the administrator of an estate, what is the best way to resell timeshares that were part of the deceased's assets and the inheritance of the deceased's beneficiaries? Timeshares are very difficult to resell. You may want to timeshares to the heirs as part of their inheritance and having…
Capital Gains Tax On Rental Property And Inheritance
When you sell a rental property you have to pay capital gains tax on the amount of profit you made on the property. The amount of mortgage loan you had on the property does not affect the capital gains tax. In addition, when you inherit property you inherit it at the market value it had on the day…
