Mom signed over home to 4 kids, hoping to not lose to nursing home. Mom went into nursing home with everyone's hope that she would return soon. Mom got worse and she didn't and died soon. Kids now have sold home. There was no mention of life estate but implied. Is the kids' basis FMV at time of death, or Mom's basis?
-
-
If no "Life Estate" was written up in the will
I would say they have mom's basis.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
Based on limited facts given this was a gift and carryover basis applies.Comment
-
I've read some previous posts and if intention of life estate is there, which it was, it seems like it could be FMV. Kids were not going to sell home with the hope that Mom could move back and live there until she died. Any written guidelines on this?Comment
-
I'm not sure. But I don't think you can have an intention of a life estate. You either have one or you don't.
Did the property actually change into the kids' names? Did they actually become the owners of the property? Was there a probate to transfer the property into their name after her death? Or did they already have it in their name so no need to transfer?
From the post, they seem to want the best of both worlds. Keep the property out of her hands so the heirs could have it and it wouldn't get eaten up by nursing home costs. And now, they want to claim it as inheritance so they do not suffer any tax consequences.
Not being harsh. I see this same thing come into our office alot. Each case is different.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
-
Enhanced Life Estate Deed
http://images.pascogov.com/deed.aspx?c=6128|1577|0&type=pdf
If there was not something like this executed, sounds like a gift.Comment
-
Medicaid
If medicaid kicked in for nursing home expense, have you warned children medicaid may try to recover costs?Comment
Comment