Mom passed with reverse mortgage. A few questions

[Mark K]

Might be low enough there is no estate tax. US estate taxes apply for 15 million or more only.

Probably no estate tax but an appraisal may be necessary to establish a cost basis for any cap gains tax if the local market changes between the date of death and the date of disposition. Also, some states have an inheritance tax and an appraisal may be necessary for this. If an heir(s) keeps it an appraisal is necessary for this reason. Again, this is where legal advice is necessary.

If it's sold immediately after death, likely no reason/need for appraisal. It is usually safe to claim that the value on the date of death and the date of sale is the same in this case.

 

[Zoe]

Probably no estate tax but an appraisal may be necessary to establish a cost basis for any cap gains tax if the local market changes between the date of death and the date of disposition. Also, some states have an inheritance tax and an appraisal may be necessary for this. If an heir(s) keeps it an appraisal is necessary for this reason. Again, this is where legal advice is necessary.

If it's sold immediately after death, likely no reason/need for appraisal. It is usually safe to claim that the value on the date of death and the date of sale is the same in this case.

Even on capitol gain, I think a retrospective appraiser can be hired as of DOD when they sell it if they sell it. They could hire 2 or 3 appraisers.

You have expenses in that time frame too. Capital gain tax may not even apply later. Capital loss may apply.

 

[KHS445]

Lots of circle talking. Much of the estate advice offered on this forum is worth about what you paid for it. I am not offering any legal advice, only some suggestions regarding how and where to start. Rely on the experts.

1. Pull all your mother’s financial information and documents together. If there is not a trust, or if you are not on the title to the house, or if you are not a joint owner on her accounts, you will need to take the following action (step #2) immediately.
2. Meet with an attorney who specializes in estates. The attorney will tell you what needs to be done and will probably tell you what he needs to do and what you can do to reduce expenses.
3. Talk with a local bank or credit union, preferably one you have a relationship with, and if there isn’t one start with your mother’s financial institution. If you are not comfortable with what they tell you shop around. Buying the property will require a number of steps and probably take 2 to 6 months depending on how the title is held and probate, if required.
4. Keep track of all expenses whether paid by the estate or yourself regarding estate related expenses. Things like taxes, insurance, maintenance, lawn care, utilities, etc. will continue.

Good Luck

 

[Terrel L. Shields]

an appraisal may be necessary to establish a cost basis

a bank appraisal can cover that.

 

[Zoe]

Lots of circle talking. Much of the estate advice offered on this forum is worth about what you paid for it. I am not offering any legal advice, only some suggestions regarding how and where to start. Rely on the experts.

1. Pull all your mother’s financial information and documents together. If there is not a trust, or if you are not on the title to the house, or if you are not a joint owner on her accounts, you will need to take the following action (step #2) immediately.
2. Meet with an attorney who specializes in estates. The attorney will tell you what needs to be done and will probably tell you what he needs to do and what you can do to reduce expenses.
3. Talk with a local bank or credit union, preferably one you have a relationship with, and if there isn’t one start with your mother’s financial institution. If you are not comfortable with what they tell you shop around. Buying the property will require a number of steps and probably take 2 to 6 months depending on how the title is held and probate, if required.
4. Keep track of all expenses whether paid by the estate or yourself regarding estate related expenses. Things like taxes, insurance, maintenance, lawn care, utilities, etc. will continue.

Good Luck

Lawyers that are staff or under consignment for a bank know as much about real property law in the jurisdiction as anybody in the subject jurisdiction. If the person don't already have a personal lawyer and want to do with business or already does business where the Mom did business, they would be cheapest route. I would not trust the lawyer for the bank holding a reverse mortgage on the subject.

That is me personally and serving in no professional capacity as a real estate lawyer. You can take it with a grain of salt.