Should we sell now or wait for it to be part of the estate?
365949
If you sell it now, you will pay capital gains.  If you wait until it's in his estate and the estate sells it, you may not pay any estate tax at all, depending on the value of the estate as a whole -- currently, an estate tax exemption applies to estates with a value of up to $2 million; and in 2009 this increases to $3.5 million; and then in 2010 the estate tax is "repealed" altogether.  (See Smart Money link below.)  I say "repealed" in quotes because in 2011, the law sunsets and estate tax rates go back to what they were when the law changed (I believe that was 2001).  So if the estate is opened between now and 2010, you may not pay estate tax at all.  And of course, Congress could extend the law between now and 2011.  So, there is some uncertainty involved.\n\nThe above addresses federal taxes.  You'd also have to check to see if your state levies an estate tax, some states do.\n\nBut one thought -- with the uncertainty above, you might consider having your dad put the land in a trust.  This could be used to avoid estate taxes AND avoid the probate process.  The trust beneficiaries would receive the property at his death with a "step up in basis" -- meaning if they turned around and sold it after he died, their gain would be based on the land's value at the time of his death and NOT its value in 1920.  (See paytaxeslater.com link below.)  In fact, if your dad hasn't already done so, he might consider this approach for all or most of his assets.\n\nYou should run this by an experienced estate and trust atty where you live, with some planning now you might save some taxes.
816780
If your father died in 2005 the estate will be exempt for the first 2 million dollars.  You will need to file an estate return which normally requires an attorney and a CPA because they are rather complicated.  Not filing the return will surely complicate things.  If there are taxes due and not liquid assets to make those payment from the estate the estate will need to liquidate some of the assets.  In plain language that means sell some of the property to pay the tax.  The estate can sell it to you or anybody.  If you do nothing the government will take what they think is due.  Generally that is a great deal more than if you file the proper return in a timely manner.
138462
Lots to consider, what is the appreciation in the community that you are living? What does it look like for the next five years? With home ownership your interest is a deduction from your ordinary income? What is your present rent? Over 5 years.?\n\nWhat are present market value of the sold homes?\n\nGenerally home ownership is the way to go.\n\nGood Luck
868747
yes stay there until the judge decided what you will happen with the property you lvie in depending if you're finghting the house but meanwhile- you should stay there.  FI it gets sold- you should get the portion that the judge says weither 1/2 or certain %.  Stay there
320218
With just a notice, you can still sell as it is still your home.  You will have to get at least the outstanding balance on the sale to cover the bank note + penalties you have accrued.  Many people choose to sell when in foreclosure as they can walk away with a little cash and sometimes allot of cash depending on the market.  There are also ways to get bailed out of the foreclosure if you want to keep the home.
647864
First of all, it depends on when you inherited it and when you are selling it.\n\nYour "basis" in the property is what it was worth at the time of the death of the person you inherited it from.\n\nIf that was a while ago, the property may have increased in value.  If it was recently, or in an area not experiencing increased value since you inherited, it may be at or near the same value as your "basis" at the time of their death.\n\nThe difference between your "basis" and the current sales price of the property is called the "capital gain" and it is all that you will be taxed on.\n\nEXAMPLES  \n\nIf value @ death was $35,000.00 and you are selling for $35,000.00 - NO TAX (no gain because the basis is as same as the sales price)\n\nIf value @ death was $25,000.00 and you are selling for $35,000.00 - $10,000 Taxable Capital Gain\n\nAs for the tax rates, that is where my expertise pretty much ends.\n\nThere are Long Term Capital Gains and Short Term Capital Gains, and I do not know the length of time for each, nor whether or not there is a difference because the property was inherited and not purchased.  They are taxed at different rates, and those rates have nothing to do with your income level or any other particulars other than the time the capital asset (the property) was held by you. \n\nFor this you will need to speak to an accountant or tax advisor, but I hope you have a better understanding now of what questions to ask to get a complete answer from them.\n\nGood luck and take care.
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.
744547
Hi Sundance,\n\nIf they relinquish all legal and equitable interests in the property prior to this eventuality then there is no property to sell.\n\nPerhaps an express trust might be in order?\n\nAssuming your parents are in good health at the moment and this will not happen in the next few years then I cannot see a problem.\n\nEg. If they sold the house and gave you all the money from the sale tomorrow and you spent it the day after then the money is gone, is it not? That asset no longer exists.\n\nHave a talk with a solicitor that specialises in equity and trusts if this is of interest to you.\n\nThe other alternative is to sell the property with the clause that they continue to live in it for the rest of their natural lives. There are companies that do this and your parents live there rent free.\n\nThey can do what they want with the money.\n\nThis is another alternative to ensure the money goes where it is intended.\n\nAgain, speak to a solicitor.\n\nGood luck.
837496
I say we keep it.  The estate tax only kicks in after a certain amount of money is involved.  Most of the arguments against it try to paint a picture of 'thanks to this darn estate tax, we can't keep the farm now that dad's passed away'.....this is totally incorrect and misleading.  The exemptions on the tax cover estates up to several million dollars- which safely covers most modest estates of hard working families.  \n\nWe're talking about millions and millions of dollars before the tax is enacted on a particular estate, leaving more than enough for any benefactors to live comfortably.\n\nSo some heiress only gets 20 million instead of 30......I'm crying for them- no, really.
32024
Refi may not be your best option. If you plan on staying in the house for at least 2 more years, get a home equity loan to make your improvments. Costs are less than a refi and you get the money sooner.\n\nYou say you may sell soon. It's important to note that it's hard to recoup your costs of selling in a two year time frame (depending on where your home is located). The East and West coast areas of the U.S. have appreciated alot in recent times.\n\n\nMaking improvements to a bath and kitchen are smart for resale. When thinking about improvements only make the ones that will pay you back $2 for every $1 invested.
967093
This is a tricky one.\n\nYou would pay capital gains taxes on the difference between the sale price and the basis.  The basis would include the original cost plus any improvements.  The property taxes were probably deducted each year so you can not add those to the basis.  You may get a "stepped-up" basis for half of the land based on the fair market value of land on the date of his death.\n\nIt is time to see a professional.  I would not attempt this on your own.
113170
If I were in you shoes I would also sell it on ebay. If you really think about it, other people can use it and who knows you may make a little more then you paid and come out a head. \nI am so sorry that your wedding plans are off. god bless and best of luck to you
732763
Do yourself and them a favor, and hire a local attorney to do the paperwork and make the property transfer.  Better to pay a little now than a lot later.  Property interests are governed by a myriad of laws, and you don't know them.
294639
Upon your mothers death you would inherit the house tax free with a stepped up basis equal to its current market value. At that point you could sell it with little or no tax consequence. If her estate is under the threshold in the year she died, the estate would not have a tax either. Since I don't know the value of her estate, I can't answer that ??. If you sell now, she might have a taxable event if the house appreciated more than $250K since 1999 basis she got when your dad died. \n\nThere are a few wrinkles based upon the info above. If it were my own situation, I know enough to make the decision, in your case you should spend an hours time with a CPA who knows estates & trusts.\n\nIf you want, post your moms basis on DOD in 1999, current value and size of estate and we could hash it out a bit more. However it is still wise to see a CPA.
47977
I'd take the house - you can rent it out and have income.  If it burns down, you still have the lot value.  If you take the car, once it is ruined, it is gone.  The value in the car is in your ability to liquidate the asset, and to do that, you must find a buyer ready, willing and able to purchase the vehicle. The real estate has the potential to increase in value and is useable.  The vehicle seems more of a liability, and is impractical, unless you want to rent it out for weddings, etc.  Nonetheless, you still run the risk of depreciation every time you drive the vehicle out of the garage.  It's not like you can drive that car to the supermarket.  Of course, if you're looking to liquidate quickly, and have a qualified buyer, take the car, provided it is worth more than the house.  As an attorney, I can PROMISE you that the cash inheritance is NOT tax free! (Its called "estate tax") I'd say skip the cash, because you can liquidate both the other choices and yield more than the cash after taxes.
1114330
I agree with Goldwing (ride one myself).  Look into a reverse mortgage, actually look into 3 or 4 different lenders that offer reverse mortgages.\n\nYou mentioned that you still have an existing mortgage on the property.  So the reverse mortgage would pay that off and then depending on the equity provide an income to your relative.  You seem to be holding title, so that would have to be transferred back prior to the reverse mortgage closing – AND the mortgage plus interest would have to be paid back if you were to inherit the property.\n\nYou will have to do some research on this as they haven’t been around very long and haven’t been readily accepted in the market place yet.\n\nGood luck.
855958
The property has to be owned by somebody.  If the property belonged to a deceased family member and no one ever came forward to take legal possession as per a will, then most likely someone else owns it now.  It would have been sold for non-payment of property taxes.  If they know the municipality in which the property was located then check with the local tax assessors office.