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Ask Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Legal
Satisfied Customers: 35334
Experience:  16 yrs practice, Civil, Criminal, Domestic, Realtor, Landlord 26 yrs
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my mom has a life estate with me...we transferred the deed....my

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my mom has a life estate with me...we transferred the deed....my moms house is worth 600,000...upon her death will I have to pay any kind of taxes and how much?
Hello and welcome! My name is XXXXX XXXXX I will try my level best to help with your situation or get you to someone who can.
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I am not quite sure by your comments what the transaction was...
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Do you mean that you and mother share a life estate?
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Or that mother has a life estate and you are the "remainderman" (the one who gets the property after the life tenant dies)?
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Or that mother transferred her house to you via a deed and reserved a life estate for herself?
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Thanks
Barrister
Customer: replied 3 years ago.

yes I am the remainderman..we live in ny......my mom has a life estate....this was done 6 yrs ago

Ok, if mother deeded her house to you and kept a life estate, then she would have made a gift to you at that time of the value of the remainder interest. This should have been calculated by determining what the life estate is worth based on her life expectancy and what the use of the property would be worth for that period. That number is XXXXX subtracted from the appraised value of the property and that number is XXXXX value of the gift she gave you.
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But to drill down to your question...when she passes, her life estate would extinguish and you would be the sole owner of the property. Since she is not giving you anything that you don't already own, there would be no taxes due from you when you become the sole owner.
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Thanks
Barrister
Customer: replied 3 years ago.

I understand the 2nd paragraph but not the 1st..i don't remember doing any calculating with my lawyer when we made the life estate

Don't worry about the first paragraph...That was just for your information about how it should have been done and how any gift taxes should have been calculated for mother.
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If she didn't either pay gift taxes or use part of her lifetime gift tax exemption then the matter shouldn't be brought up now as apparently the IRS didn't catch this.. So you don't want to shake up the hornet's nest now..
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Thanks
Barrister
Barrister and 2 other Legal Specialists are ready to help you
Customer: replied 3 years ago.


thank you Barrister.....you've been a big help