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.
Selling Parents’ Home After Their Death
Transferring a title from deceased owners to heirs depends on the state the property is located in. In some states, inherited property can be transferred by a court, and in others a title company may be used. It may be necessary to open probate to get the title changed on the inherited property.
Revocable Trust Can Meet Estate Planning Needs
How can you ensure that your investment property gets transferred to the correct heir in the event of your death? Is there a way to meet your estate planning needs and still allow you to enjoy the investment property's income while you're alive? A revocable trust may be able to meet these estate planning needs.
Paying For Long Term Care With Property
A trust can be used to shelter assets and give ownership to the trustees of the property, or other assets. However, if the previous owner goes into nursing home care soon after the trust is set up, it can be undone by the state to pay for the original owner's care. While using cash or other assets to pay for long-term care isn't as appealing as having Medicaid pick up the bill, that's what assets are there for.
A Trust Versus Quit Claim Deed
If you wish to leave property to your heirs, a quit claim deed while you're still living isn't the best way to go. Transferring ownership by a quit claim deed can cause a big tax problem and possible gift tax. Putting assets in a trust is a better solution than using a quit claim deed.
Taxes On Sale Of Inherited Property
After selling an inherited property, the cash proceeds are divided up between family members. Tax would only be paid on the capital gains after the sale of the property and suggests that a little bit of planning may save everyone a lot of money when tax season comes around. How the taxes are calculated will depend on who owned the property, the value of the property, and how the proceeds were divided.
Estate Planning: Trust May Be Better Than Quit Claim Deed
When an elderly parent wants to pass along a property to a child, a trust may be the better choice in order to avoid probate and an increased cost basis. Some families think about using a quit claim deed, which allows the owner to sign over all ownership and financial interests in a property. Using a quit claim deed means the recipient receives the property at the original cost basis which could lead to high capital gains taxes upon sale.
Title Not Affected By Name Change After Divorce
When a woman gets divorced and marries for a second time her name may change. Does this name change affect the validity of a house title? No, a house title remains in effect regardless of which name you use. To ensure that a property be transferred to the correct heirs, it's important to go through estate planning including setting up a will.
Gift Tax Or Capital Gains: Know Tax Rules When Selling A Home
A new condo owner is confused about whether she owes gift taxes or capital gains on the sale of her mother's home. Ilyce explains the rollover replacement rule and gift taxes versus capital gains. Always get a real estate attorney and tax adviser when selling a home when taxes like the gift tax or capital gains are involved.
Verbal Easement Affects Property Inheritance
When neighbors agree to property access through a verbal easement it may pose problems for future property owners. The terms of the easement may be unclear and may affect the use of the property. Easements may allow property access but don't change who owns the property. To fully understand a verbal easement it may require hiring an attorney.
Selling A Home You Got As Inheritance
When you receive a real estate inheritance you may decide you want to sell it. But how can you sell a home that's a real estate inheritance without paying too much tax? And how large does an estate have to be for estate tax to be triggered? The best way to resolve these inheritance questions is to consult with an estate attorney and accountant.