How would a reit(real eatate investment trust) pass at death ? Would it be subject to inheritance tax and prob
105371
A REIT would be treated as a stock.  So at death, it would be handed down to the benefactor.  There would be a step-up in basis for the person who inherits it.
686036
Oh.  Dear.  God.  \n\nThis is exactly why you don't post this kind of question in these forums.  None of these people know what they are talking about (with the exception of those that suggest speaking with a lawyer.)  There are serious tax and legal consequences to how you hand over property.  \n\nI am a California lawyer with very little experience in estate planning.  However, I have spoken with estate planning lawyers in my office often enough to know that the only person you should be speaking to right now is an estate planning lawyer.  Example -- if you quit claim (not "quick" claim) the house to your children, your children could kick you out of it tomorrow.  Presumably, you only want the children to have the home once you pass on.  This is usually done through establishing a trust estate.\n\nAnother example:  if you put title of everything you own in your children (as suggested by Loo) you lose all control over your property during your life.  This is a monumentally bad idea.   If you put your kids' names on title, you will not ever be able to dispose of any property without their approval.\n\nAnother bad example:  deeding the home over in exchange for $1.00 (as suggested by drdemento61.)  Again, big mistake.  This could easily be undone as a sham transaction.  Not to mention, there are serious tax consequences to both you and your children for this kind of stunt.  You and your children both would have to pay massive amounts of gift taxes.  And, as mentioned above, you'd immediately be dispossessed of your home.\n\nAs for making a will -- if you merely will the property to your children then the property will have to be run through probate.  Your kids may have to pay probate taxes.  Again, this is a complicated matter.  Go spend the money on an estate planning lawyer.\n\nWhat you need to accomplish is maintaining control over your estate during your lifetime while devising your property to your progeny to ensure the minimum amount of taxes taken out and the minimum amount of headache.\n\nDO NOT follow the purported legal advice of any person here (including myself.)  Go find yourself an estate planning lawyer.  You can find one in your area by doing a search on www.martindale.com.  Make sure that they are CERTIFIED in estate planning with at least 10 years experience.
813670
I am also a seniour citizen.  My investment is in property only.  My strong advise is not to sell the flat unless you are badly in need of money.  The value of properties are going up and up daily.  If you sell now, you cannot buy it again.  Selling property and paying capital gains is all waste.\n\nIf you have to sell your property, and if you happend to pay tax, to avoid paying tax he has to invest the profit in capital gain bonds. If your father has no other income, then you can deduct Rs.1.85 lakhs from the profit. Say indexation profit is 3 lakhs. less 1.85 lakhs rebate to >65 years old people. Your net profit on which you have to pay tax @20% is Rs.1.15 lakhs.)\n\nWhat Mr.Rupin sain in his above answer is partly not correct.  For the purpose of Long Term Capital Gains on Property, you have to go indexation only and no other methos. (The other method of 10% is only for mutual fund units.) Mr.Rupin said two methods.  No two methods. Only one method for property that is indexation and 20% tax.\n\nI have given the below answer to a question about long term capital gains of a property.  Follow this.  This will give you how to calculate the tax.  About 20 years back say during 1985-86 the indexation was 133.  For 2005-06 it is 497. \n \nCost if Indexation is only for the purpose of calculating Long Term Capital Gains. Listed/shares sold in Indian Stock Exchanges are free from payment of Tax, if they are sold after 12 months of purchase. Other properties will be treated as Long Term Cap. Gains if they were sold after 36 months. For this, the indexation cost will apply and the income tax on this income is @20% flat rate. \n\nExample:\nOn 17.9.1982 your have purchased a house plot for Rs.10,000/-. That is in the FY:1982-1983. The Cost of inflation index for that year was 109;\n\nOn 16-11-2005 you have sold the same for Rs.8,00,000. The financial year is 05-06 and the inflation index for that year was 497.\n\nYour actual gain is (8,00,000-10,000) Rs.7,90,000/- \n\nYour actual cost of the house site is Rs.10,000\n\nYour inflation indexation cost is 10,000 x 497/109= Rs.45,596/-\n\nYour inflation indexation gain is Rs.8,00,000-45,596= Rs.7,54,404. \n\nThe tax on it will be Rs.1,50,881+ED2%. \n\nIf you need any personal clariication (free advise), please send me a mail to my mail address neswarareddy@yahoo.com
761817
It will depend on the purpose of the trust and its exact wording. If the trust was to keep you from spending the money foolishly and you need it because you have been foolish with your own money, it won't work.
197680
You can put anything you own into a revocable trust EXCEPT IRA's and 401k"s and sometimes insurance limitations preclude placing autos in trusts. You are going to place your capital gain into a bank account, CD, brokerage account, another house or somewhere.  Wherever that capital gain goes that account can be included in your revocable trust.
57399
I think your question is about how the estate tax works.  Generally, only estates in excess of $2,000,000 are taxed.  If the estate is in excess of $2,000,000, the estate will be taxed at graduated rates that reach about 50% for large estates.  With proper planning the impact of the estate tax can be minimized.
712359
No.  You don't owe federal tax by inheriting stock.  The only time you owe tax by inheriting something is when you inherit an IRA or other retirement plan AND make a withdrawal from it.\n\nWhen you inherit stock, you will have a taxable event when you eventually sell the stock.  Normally when you sell stock, you have to figure out if you have a gain or loss and then pay tax on the gain or get a tax break on the loss.  The gain/loss is the difference in what you got for selling the stock minus what you paid for the stock.  For inherited stock, your gain/loss is the difference in what you got for selling the stock minus the fair market value (FMV) of the stock when your parents died.  This is true regardless if the FMV is greater than or less than what your parents paid for the stock.  That's why it is good tax advice to sell all losing stock before you die and don't sell stock that has appreciated.\n\nSo, do your research now to figure out the FMV of the stock you inherited and write it down and keep it in your records.  Use this amount as the "purchase price" when you eventually sell the stock.\n\nState taxes may be different.  Some states tax inheritance.  You will have to do your own research for your state.  Your parent's estate may owe tax, but that is a different subject alltogether.
945726
Yeah unless the money Is delt under the table. Youll have to pay a tax on it, the ammount really depends on how much youll be reiciving
81787
We did something similar but transferred it to a Family Trust.\n\nHowever, transferring the deed to you is entirely possible.  The only thing is that when you sell this property, your capital gains will be based on your initial cost of $0.  Therefore, you will pay higher Capital Gains tax later on. \n\nThis should of course be offset by you getting this property for free, and really depends on your tax bracket.\n\nIs there a mortgage on this property?  If so, you can still transfer the deed to you.
896356
Yep.  Property Taxes, Whether back or future.  Inheritance tax
393440
She can do this, but it may count as a taxable gift since she will have basically deeded over 1/2 interest in the property to you.\nBetter that she puts the property in a trust with her as the trustee and you as beneficiary.  It can then pass to you with no tax consequence and avoid probate.
878382
Wow Im a little worried about some of the advice you received.  An annuity is a policy with an insurance company that allows you to protect your money from probate, and yes it passes directly to your beneficiary within 7 days after the insurance co is notified.  Unfortunately too many people give their opinions about annuities when they have no idea what they are and why they are great retirement/estate planning tools.  Not to mention that Annuities pay higher interest rates than bank CD's and money markets, and Fixed annuities don't lose your money like the stock market and mutual funds.   Good for you for having an annuity, now that I have shed some light on what they are.  The answer to your question is YES.  Just like any investment, you will not avoid paying taxes on your annuity.  If it is Non Qualified Money, the taxable portion will be on the interest you have earned during the course of having the annuity policy.  If it Qualified money like an IRA the entire amount will be taxable.  The insurance company will be happy to take the approximate taxes right off the payout amount to help your beneficiary, or they can elect to pay it at the end of the year.  Estate and inheritance tax only effect a small percentage of Americans, so this probably won't be an issue for you.  Keep in mind that if this is infact in a Fixed Annuity and Not a Variable annuity, your interest has been compounding over the years tax deferred.  That gain is significantly better than you would have gotten in a CD, paying taxes on it every year.  Good for you.  Make sure you keep that money in an annuity, and that you are getting a FIXed interest rate, no in the stock market.  SAFETY
521478
Unfortunately, you can only roll it over into another investment property (Like-kind exchange)  Applying it to your residence will not work.  You have sixty days (before or after the closing) to identify another property and 180 days to close on it.  If you held the property for investment (say yes) and held if for over 12 months, you will pay tax on it at the lower capital gains rates. If you held it for less than 12 months, it is considered ordinary income and is taxed at your regular rate.  If it is less than a year, see if the buyer will wait until the year is up.  Give them soem money back at closing to compensate them for waiting.  It could be worth your while.  To see what the tax might be, use your tax software to estimate what your tax would be.  Sorry to hear about the medical problem, I hope everything works out.  Also, ANY profit is a good profit!!!!!
8094
No.  The instant you ever receive any dividends, even if you immediately turn around and plow them back into the stock, it doesn't matter, you have recieved income, and that income is taxable.  \n\nThis is one of the many reasons real estate is my investment of choice; it doesn't have these pesky tax problems...
567114
Your situation would depend greatly on which country you are in. \n\nIf you do not want to own the money yourself, you can have a personal trust set up for the child, where you or somebody else would act as trustee for the trust and manage the funds. The trust deed that is set up by the donor, determines the requirements that have to be met before the beneficiary of he trust fund may get access to the funds.\n\nIf you want to keep ownership of the money, you can of course invest in anything, and then give the money to your child whenever you feel like it.\n\nHowever, there are major tax implication from capital gains tax, income tax to estate duty involved. Discuss it with a certified professional that specialises in estate planning.
773651
There are a lot of options - remember a trust is a legal entity iteself and can pay taxes. There are many different types of trusts. One thing is your brother can buy your share in the trust vs. the trust selling the property and making disbursements to the trustees. You should get your lawyer to make a plan for you - there might be things that can be done depending on how you want to use your share of the trust money
948956
it can only be broken by death.  the trustee has all the power laid out in the trust. and yes he can spend your inheritance if he likes, but you should moniter him or her's actions. or have more than one trustee.