Tax and Deed question... - Posted by John

Posted by Randy (SD) on February 05, 2004 at 10:20:38:

First of all let me start by saying seek legal advice!there are several factors that enter into the answer to your question, do you live in a community property state?

The second and more prevalent question is the size of your estate, the third factor is in the existence or lack of a will.

When a person died intestate (without a will) the estate is normally divided one-third to the surviving spouse two-thirds to the surviving children. The federal estate tax laws allow for $600,000 (maybe larger now) to pass to the heirs inheritance tax free. Obviously the entire issue could be resolved with the simiple creation of a trust and a provision in your will that upon your death you’re beneficial interest in the trust passes to your heirs at your direction. You could also instruct that your beneficiaries receiving income from the trust and direct how the proceeds of any sale of assets is to be handled.

Tax and Deed question… - Posted by John

Posted by John on February 04, 2004 at 23:46:04:

I own several properties in my name alone that I acquired while married. Mortgages, paperwork and deeds are in my name; wifes name appears nowhere.

I have no intentions of ever selling these properties because they will partially fund my retirement.

Here’s the parable, someone correct me if I’m wrong in my thinking.

I thought for a while last year that should something happen to me, it would be better to have the wifes name on the deed so she could take over the management of the properties. However, it has also occured to me that she probably wouldn’t want anything to do with them, and would most likely sell them soon after my untimely demise.

If she sold with her name on the deed as a co-owner of the property, she would then be subject to capital gains taxes. But, is my way of thinking correct that if I am the sole owner, when I move on to happy land the properties would then become a part of my estate, most likely liquidated by her, then subject to inheritance tax thereby bypassing the capital gains tax…?