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.
Property Transfer To Family: Inheritance Or Gift Best Way?
Should a person give a family member property or let the person inherit it? Ilyce tells the reader that inheriting property is better than receiving it as a gift because of the taxes involved. Putting the property in trust and bequeathing it to a family member upon the person's death helps the receiver avoid gift taxes.
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Living Trust May Help With Inheritance
A living trust many be the best way to pass on property that you have inherited. If you don't have a trust or will documenting how you want things passed on, the laws of your state will prevail.
Structuring Your Inheritance To Avoid Conflict
Designating children as beneficiaries to brokerage and bank accounts can lead to difficulties. Minor children can't inherit cash. You need to have the cash and financial assets in a trust with a trustee (and backup trustee) named until they become of legal age, or until you feel they are old enough to manage these resources appropriately. Leaving real estate to children can be tricky. It's expensive to own and maintain -- and they may not have enough income to keep the property going and they may not be living anywhere near the actual property.
Clearing Title Of Abandoned Property
A man owns property with his brother and wife. After his brother died, he never heard from his sister-in-law again. Now he has questions about home ownership. Ilyce explains that inheritance law will explain who owns the home and that he should check the abandoned property law in his state.
Inheritance Taxes Paid Before Money Distribution
When you inherit money and get the actual money, the estate has already paid the inheritance taxes so you don't have to worry about that. It is a good idea to think of what you'll do with inheritance money or a real estate property inheritance ahead of time. What to do with the money has to do in part with how old you'll be when you get it.
Real Estate Minute: Don’t Spend The Inheritance Just Yet
Real Estate Minute with Ilyce Glink Don’t Spend The Inheritance Just Yet Original Air Date: August 25, 2006
Refinance And Quit Claim Deed Before Divorce
When you separate or divorce you may decide to refinance your primary residence. If you refinance and execute a quit claim deed at the same time, it means that regardless of whose names are on the mortgage loan note, the only owner of the property is the one who did not sign the quit claim deed. When a court looks at the assets involved in a divorce, the quit claim deed will affect the future of the home.
Life Estate On Home Could Lead To Gift Tax
Receiving a life estate in a home means the home belongs to you and you can do as you wish with the property, except for sell or transfer upon death of the holder. Giving someone a life estate could result in a gift tax. Talking with a real estate attorney should help determine a way to use a life estate without incurring a gift tax.
Figuring Capital Gains Tax On Inherited Property
When you inherit property you inherit it at the market value of the property the day the person who owned it died. This market value is your cost basis when you calculate taxes while selling the property. In addition to federal capital gains taxes you'll likely have to pay state taxes on the sale of the property inheritance. Learn how to calculate the taxes on a property inheritance.