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.
Attorney Can Help With Title Problems
A property deed may list several people as co-owners. What can you do if some of your co-owners want you to leave the property after someone passes away? This involves not only real estate title issues but also estate planning concerns. Contact a real estate attorney for help.
Ilyce Glink on WSB Radio – November 25, 2007
On this Sunday after Thanksgiving, Ilyce talked about CyberMonday (the day that everyone supposedly goes back to the office to begin shopping online in earnest for Christmas) and how some bloggers suggest that this is a made-up shopping day. Ilyce also took questions about whole life insurance, inheritance taxes, and whether EE bonds that a caller's daughter inherited could be used tax-free to pay for school. All this and more on this week's Ilyce Glink Show.
Tax Implications In Transfer Of Property Title
Transfer of property title can have many tax implications. There is no way to simply transfer title to you without you then having a significant tax issue down the line. Tax-wise, the best choice would be for you to inherit the property.
Calculating Property Cost Basis
In simple terms, when people talk about the term "basis," that term refers to the cost of the property adjusted for improvements and can be adjusted up or down for other reasons. If the property was vacant land when you bought it and it cost you $5,000, your basis at that time was $5,000. If you put a home on it at a cost of $35,000, the basis of your property would have been $40,000 even though the home might have caused the land and home to be worth much more than the $40,000.
Does Heir Pay Lien On Inherited Property?
A son inherited property from his father who had a judgment against him. A judgment may mean there is a lien on the property that the estate must pay. Generally, a lien does not go away when a person dies.
Life Estate Deed Contradicts Will
A mother's will outlined that her personal property would be divided equally between her two sons. One son later says he has a life estate deed that says he is the sole heir to the property. Finding out if the life estate deed is valid will determine if it trumps what was outlined in the mother's will?
Income Tax On Inherited Property
Selling inherited property will have its tax implications. To determine what taxes you would pay on selling inherited property, you'll have to get an estimate for the value of the property when it was inherited. You may also own capital gains taxes and state income taxes for the inherited property.
Quit Claim Deed May Not Represent All Owners’ Interests
When you agree to pay property taxes you likely want property ownership as well. But be careful assuming financial responsibility when only one of multiple owners of a property asks you to. If one property owner quit claims his share of a property to you, you may find that you've invested a lot of money into a property only to have the other owner or other owner's heirs come to you later wanting their share. It's helpful to contact an attorney in this situation.
Estate Planning Helps Mitigate Inheritance Taxes
When you're doing estate planning you need to consider not only federal taxes but state taxes too. Some states tax estates at different levels from the federal tax rates and the states may not tie their estate taxes to the federal rate. It's important to consider estate tax rates to preserve an inheritance.
Taxes On Inherited Home
Inheritance tax is usually paid by the estate. If the value of the estate is more than $2 million dollars, the estate will pay inheritance tax on the overage.