Posted on: 17th Feb, 2010 12:47 pm
My mother-in-law had a quitclaim deed reserving a life estate. Upon her death how are the taxes paid by her two sons. It is my understanding since she kept the life estate, upon her death whatever the house was worth at that time and what her sons sold it for is the monies they have to pay taxes on. Is this correct. (New York State)
Hi Suejoe,
After her death, your mother-in-law's life estate rights will become null and void. Her two sons will become the owner of the property. Thus, when they sell off the property and have capital gains from it, they will have to pay taxes on that amount.
After her death, your mother-in-law's life estate rights will become null and void. Her two sons will become the owner of the property. Thus, when they sell off the property and have capital gains from it, they will have to pay taxes on that amount.