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Richard
Richard, Attorney
Category: Estate Law
Satisfied Customers: 54708
Experience:  29 years of experience practicing law, including tax and estate planning.
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I am trustee of my mother's estate. The trust holds a

Customer Question

I am trustee of my mother's estate. The trust holds a property in Brooklyn New York appraised at 1.8 million . We had gotten an offer for 1.925 but sisters would not leave the property.
My sisters want the property. I have suggested that a bridge loan from friends could help pay me out and they would pay back their friends after they got a reverse mortgage. I will not put them on deed until they have a plan to buy me out
If they buy the property from the trust at say 625,000 and that money is then disbursed to me as a beneficiary of the trust what are the estate and tax implications in New York
Submitted: 6 months ago.
Category: Estate Law
Expert:  Richard replied 6 months ago.

Hi Nancy. My name is ***** ***** I will be helping you today! It will take me just a few minutes to type a response to your question. Thanks for your patience!

Expert:  Richard replied 6 months ago.

Since you inherited this money, there would be no gain and thus no tax on the sale of your interest in the property. That's because when your mother died, the basis of the property is adjusted to its fair market value of the property and thus when you sell it for its fair market value, there is no gain and thus no tax. If you can't get them to purchase your interest, you could distribute the property in undivided percentage interests and then force the sale by filing a suit for partition. When there are co-owners of property and one or more want to sell (Group A) and one or more do not want to sell (Group B), if Group B won't either agree to sell or purchase the interests of Group A at a price agreeable to Group A, then Group A can file a suit for partition. The result of that suit will be one of the following: i) if the property can be equitably subdivided, the court will order the property divided into smaller parcels with each owner then owning 100% of their own smaller tract with full control over that tract; or ii) if the property cannot be equitably subdivided, the court will order the property sold and the proceeds divided. The reality is that in most cases, once Group B finds out the certainty of the result of a suit for partition, those in Group B typically agree to the sale without the suit to avoid the costs of the suit.

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