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…
Estate Planning, Inheritance, And Lowering Taxes
As you make estate planning and inheritances decisions, try to find ways to lower the taxes the state and federal government can take from those you leave behind. Your estate must hit a value of 1.5 million dollars before the federal government can start taxing your loved ones' inheritance. Proper…
Living Trust Assists With Home Inheritance
An elderly father no longer wants to care for his vacation home. His daughters, who are in line to inherit the vacation home, worry about the vacation home's cost basis if he transfers the vacation home to them prior to his death. The vacation home could be transferred to a living trust which could…
Capital Gains Tax Or Inheritance Tax On Home Transfer
It's important to consider the tax implications of giving your home to your children. If you give your children your home while you're alive, they'll receive the home at the cost basis for which you bought the home originally. If you wait to give the home to your children upon your death they'll…
Tax Treatment of Inherited IRA Depends on Distribution
When you inherit an IRA, what taxes do you have to pay on it? The income tax you pay on an inherited IRA depends on how you receive the money. If you receive the money immediately upon the IRA owner's death then you'll be taxed at your regular income tax rate. If you roll the IRA money into an…
Making good financial decisions with an inheritance can have a major payoff. Using the inheritance to pay off debts and create an emergency fund is a good start. A 529 college savings plan can be used for the inheritance to be stocked away for college.
Early Estate Planning May Protect Home From Medicaid
Many older people worry about their home being sold to pay for nursing care or Medicaid. To protect a home from being subject to the Medicaid lookback period, a family should do estate planning ahead of time and perhaps set up a life estate. A life estate will allow an elderly parent to live in a…
Selling Property Or Reverse Mortgage
When siblings inherit a home together they may want to sell the property and cash out. Can one brother live at the property with a reverse mortgage and the other siblings still cash out? One family considers getting a reverse mortgage or home equity loan to meet the needs of all involved. Ilyce…
Quit Claim Deed Validity Determines Inheritance Rights
If a quit claim deed is signed but never recorded and the former owner dies, who inherits the home? An Ohio family owns a West Virginia property through a quit claim deed but they never recorded the quit claim deed. The law of West Virginia, where the property is located, should determine whether…
Rehab Home Or Sell To Developer?
A son has inherited his parent's dated home and is torn between fixing it up or selling it cheaply to a developer. Fixing up the home could turn a large profit. But selling the home to a developer could save the son time and heartache.
Easement Problems With Inherited Property
He inherited a piece of land from his father. The property is landlocked from the road, but there was a written easement with one neighbor to gain access to the road. A driveway was built on another neighbor's property line, with only a verbal agreement. There was a falling out between neighbors…
Rental Property Fines Possible With Illegal Apartment
A life estate allows someone to keep living in a home even though someone else owns the property. When there's a life estate in effect on a property, if a municipality doesn't allow a building to house an apartment, the person living in the home is responsible to pay the fine. In some cases…
Use Living Trust Instead of Title Change For Inheritance
When you want to bequest property to someone it may be better to use a living trust instead of changing your home's title outright. If the person who you want to inherit your property is having marital strife, changing the title may cause the property to be considered part of the marital estate. In…
Avoid Probate With Transfer On Death (TOD) Deed
A Florida homeowner asks how to avoid probate for her estate. She wants to leave her condo to her son but does not want him to pay probate costs. Can she set up a transfer on death deed so that her son avoids probate? Probate laws vary by state and so she should consult an estate attorney to better…
