Marie Posted March 19, 2021 Report Share Posted March 19, 2021 Mother put only daughter on her home so it would pass easily. mother died and daughter sold. Daughter never lived in the home. Does she get full FMV on the home or only FMV on the half she inherited? Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted March 19, 2021 Report Share Posted March 19, 2021 Get a copy of the legal document and see how it transferred. Usually its the daughters 100% at passing. 1 Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 19, 2021 Report Share Posted March 19, 2021 Or by putting the daughter on the Title did the mother gift 50 % of the home to her daughter? 1 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 19, 2021 Report Share Posted March 19, 2021 Or was an informal life estate created? 2 Quote Link to comment Share on other sites More sharing options...
Marie Posted March 20, 2021 Author Report Share Posted March 20, 2021 I would imagine there was an informal life estate. daughter was only child and it was done just to simplify Quote Link to comment Share on other sites More sharing options...
jasdlm Posted March 20, 2021 Report Share Posted March 20, 2021 3 hours ago, Marie said: I would imagine there was an informal life estate. daughter was only child and it was done just to simplify Why can't people just use transfer on death deeds? I guess there are still some states that don't recognize them. It makes basis so much easier! 6 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 20, 2021 Report Share Posted March 20, 2021 It is my understanding that if a life estate was created, and the mother retained all the incidences and responsibilities of ownership until she passed away, the daughter would still get the step up in basis when the life estate ended and she received the property. 2 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 20, 2021 Report Share Posted March 20, 2021 21 hours ago, cbslee said: Or by putting the daughter on the Title did the mother gift 50 % of the home to her daughter? It would be an incomplete gift. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 20, 2021 Report Share Posted March 20, 2021 Discussion thread with a lot of hypothetical ideas and a significant lack of substantive facts. Assuming this client lives in MO, the state of the poster, more than likely state law will be the determining factor in how this all ends up. Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 21, 2021 Report Share Posted March 21, 2021 If the mother continued to live in the house and paid all the bills, it is definitely an implied life estate. As such it is included in her estate so the daughter gets step-up. Quote Link to comment Share on other sites More sharing options...
Marie Posted March 21, 2021 Author Report Share Posted March 21, 2021 thanks for all the comments. Always good to get other views. 1 Quote Link to comment Share on other sites More sharing options...
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