Currently, inheritance of a certain amount or value is subject to an inheritance tax. However, these regulations are changing. Look here for more information about when inheritance tax applies and any changes in the law.
You may have considered leaving an inheritance to someone close to you—a child, a sibling, or perhaps your best friend. While it’s nice to know that you might make someone’s life a little easier by giving him or her money, real estate, or personal property, it’s also daunting to figure out how to go about [...]
Thinking about selling your home to a family member? Get a home value estimate first to double check your home's real market value. Q: Our parents left their home to me and my two sisters. The home is located in Oklahoma and was appraised at $49,000 three years ago. The home has a mortgage with [...]
People keep asking TaxMama® how much tax they’ll have to pay on something they inherited. The good news is, generally the answer is “none.” The heirs don’t pay. The estate of the decedent pays any taxes due when the estate is large enough to be subject to estate taxes. This leads to more good news: In [...]
Gifting a house to a relative will affect your income tax and real estate property tax. Know the consequences of gifting vs. inheriting. Q: I thought you might have said on your radio show that you didn't advise giving a home away. My uncle is thinking of giving me an old house, but I didn't [...]
How to divide inherited property. There are several ways to divide real estate inheritances without resorting to lawsuits between heirs. Q: I have an interesting situation. My aunt recently died and left behind an estate which includes a luxury condo in Illinois. My aunt had no family of her own, and left 40 percent of [...]
It's better to inherit property from your parents or family members rather than receiving it through a quit claim deed. The tax implications of receiving a property through a quit claim deed are much greater than inheriting a property. When estate planning, it's better to put the property in a will or trust, rather than transfer the property through a quit claim deed.
Inheriting timeshares and how to avoid an inherited timeshare. As part of estate planning, inheriting timeshares should be considered in order to avoid undue hardship. There are many benefits and obligations associated with timeshare ownership and inheriting timeshares. Fees and maintenance can make executors want to learn how to avoid an inherited timeshare. Passing property ownership through estate planning can make inheriting timeshares a burden depending upon the executor's wish to avoid an inherited timeshare.
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 could do a deed in lieu of foreclosure with the mortgage lender, that action would not affect the original mortgage loan whose non-payment triggered the foreclosure to begin with.
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 understand Florida probate laws.
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.