Confusing Question in PA

General Real Estate Investing
1

2008 Father passes away and Daughter and kids are living in house.

There is a loan for $15K on home in Fathers name. Daughter has been paying on time since passing.

Home is in Leetsdale just outside of Sewickley a very nice area. Home value is over $125-150k.

In the hospital the father sold the house to her for $10.

Here is the question now that the father has passed the daughter is worried that the either inhertance tax or title fee or whatever will hinder her from keeping the home. Can anyone tell me what will happen or reccomend an attorney in Pgh who can guide her through this.

Thank you to all who respond.

2

The estate must go through probate. She will get the house if there are no other heirs.

3

Thank you for the response.

What kind of cost should she plan to expect?

Also if there is a payment will she inherit the payment or does some provision provide for paying the note in the event of death?

4

Heirs get whatever is left over after the estate’s costs are paid and the executor takes his 10%. I doubt there will be any estate taxes from what you have said and I would be very surprised if property has transfer taxes due to inheritance. You should seek a PA probate attorney for specific information.

5

If the father sold the house to the daughter, then the daughter should have an executed deed that she can record.

The title transfer removes the house from the father’s taxable estate. However, the difference between the $10 purchase price and the FMV of the house represents a gift of equity. A gift tax return will have to be filed with the father’s final tax return. No actual gift taxes should be due, and the gift tax return is informational.

Unfortunately, the daughter did not get the opportunity to inherit the house at its stepped up basis.

The daughter should consult a licensed tax professional to assist with the IRS issues both she and her father’s estate are facing.

6

Thank you to all and I am getting her in touch with my Attorney. She just asked if I knew and I didn’t have a clue but she was stressed again thank you all.

7
In the hospital the father sold the house to her for $10.

if the deed was not filed, DON’T. Take the time to get professional advice. She’s almost always better off to inherit the property.

We don’t know enough about the remainder of the estate/lifetime gifts to know if gift/estate taxes are an issue or not. Probably not an issue, but we need to be careful about giving advice with consequences when we don’t know all the facts and circumstances.