Zillow Advice: Taxes - Inherit the house or buy it out right? http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ Zillow Advice | Zillow Real Estate You need to speak with estate ... http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ You need to speak with estate attorney.....<br/>It depends on a lot of things, like the size of the estate.<br/>My 1st guess, but only a guess is that it is better if she has a will and specifically states you will inherit the house, is to do it that way.<br/><br/>Probably you do not want her to gift it to you before her death.<br/><br/>A good estate attorney might also put it in a trust, so that it will pass to you at the time of her death as part of a trust and keep it out of the probate process. Fri, 06 Sep 2013 00:13:00 GMT http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ 2013-09-06T00:13:00Z Most likely it is better ... http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ Most likely it is better to inherit it than be given it.&nbsp; Please talk with the appropriate professionals for confirmation. <br/><br/>If your great grandmother gives it to you, she'll be liable for gift taxes on the equity amount above $14,000 (about $360k) and you'd have to refinance the mortgage in your name.&nbsp; The gift taxes would be huge tax bill for her.&nbsp;&nbsp; If you inherit it, most likely there will&nbsp; be no inheritance taxes involved unless her estate is more than a certain amount and the estate pays those taxes.&nbsp; <br/><br/>If you are clearly in her will (a legal document created by an atttorney) to inherit the home, it should be fine.&nbsp;&nbsp; If her will is handwritten on an old slip of paper in a shoe box in a dusty closet then it is more likely to be contested.&nbsp; It is worth the time and money to have a will that meets the laws of your state.&nbsp; <br/><br/>Or, she could create a trust such as the "Great Grandma's name trust" with she and another trusted individual as trustees.&nbsp; The house could be put in the trust's name and the trust clearly define who gets the home when she passes.<br/><br/>Getting all legal documents and inheritance plans on paper with the help of an estate planning attorney takes a bit of time and a bit of money, but saves tremendous heartache and argument after she passes.&nbsp; Verbal expression of intent does not trump the laws of the state if she passes without a will.&nbsp;&nbsp; Even with a will there may be some challenges if someone gives a sizable asset to a great grandchild in preference to a grandchild or child.&nbsp; <br/><br/>The other aspect is if she gives you the house now and then needs money for medical care and/or long term care and doesn't have enough money, the authorities can reclaim the house equity.&nbsp; (The time frame for this to not happen needs to be &gt; 5 years.)&nbsp; That could be an ugly shock to your finances because you'd discover the house isn't yours or you owe a big bill.<br/><br/>In conclusion, SHE should review the situation with an estate attorney and CPA.&nbsp;&nbsp; SHE should make sure all her legal paper work is in order.&nbsp; Chances are very good that inheriting is better.&nbsp;&nbsp; You may be able to assist her in finding a good estate attorney, but remember her choices on distribution of assets are a private matter.&nbsp; Thu, 05 Sep 2013 23:50:00 GMT http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ 2013-09-05T23:50:00Z Dear user70846627:That is ... http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ Dear user70846627:<br/><br/>That is a matter of personal preference and the answer can vary based on your personal needs and who you talk to. You need to p\speak to a good real estate attorney to get the best answer for your situation. If you want, contact me direct and I can expound on my answer.<br/><br/>Sincerely,<br/>Mitchell S. Feldman<br/>Associate Broker/ Director of Sales/ e-Pro Realtor<br/>Fillmore Real Estate Thu, 05 Sep 2013 23:29:00 GMT http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ 2013-09-05T23:29:00Z I would HIGHLY recommend ... http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ I would HIGHLY recommend asking your tax advisor, or a real estate tax advisor. &nbsp;We are professionals, but we are not tax professionals nor accountants. &nbsp;I will not ever answer a tax question as if I am slightly off when I give the advice, it could cost me and my clients in the long run. Thu, 05 Sep 2013 23:17:00 GMT http://www.zillow.com/advice-thread/Inherit-the-house-or-buy-it-out-right/510169/ 2013-09-05T23:17:00Z