Estate Law Questions? Ask an Estate Lawyer.
Good evening. I am Loren, a licensed attorney and I look forward to assisting you.
There is nothing sinister about a gift of equity. When one party sells their home to another for less than its fair market value, the difference in the sale price and the appraised value is considered a gift of equity.
In your case it is just a way to balance the books when the estate assets are distributed. You do not need to protest this, unless you disagree with the market value being assigned to the house.
Hi Don. Do you see my answer.
I understand. You can continue to negotiate. The provisions of the will need to be followed. So, if the estate is being divided equally, it just needs to balance when it is distributed. So, if your sister is getting a house free and clear and you are gettiing one saddled with debt, the debt should be apportioned in the distribution, as well. That may be an element you can negotiate.
Are you still with me?
The gift of equity is necessary to balance the books, but you are going to need an attorney if the assets are to be split evenly and your sister is taking a million dollar home free and clear and you are getting a home with no equity and worth one-third of the other.
The market value has to be accounted for in the estate, but you should not be paying anything to your sister. By my calculation, she should be paying you.
Got it. well the gift of equity is necessary to balance out the inventory of the estate and account for capital gains. You can challenge the market value, but the full market value has to be accounted for in the estate.
Did you have further questions? I am happy to continue if you need further information.
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