So if there is grain bins on the place my Mother could decide who to rent them to and how much to charge and she would be entitled the money? Also, Mom brother lives in the house. Should he be paying rent and my Mother receive the income?
By the way my name is XXXXX XXXXX a sale is made of items off the site who is entitled to receive that money? Also I have rented the farm for yrs. and have made many of the improvements to the bldg. site. A couple of yrs. ago we decided to separate out our portions specifically. I was forced to choose between farm land or the bdlg. site. I chose farm land. I had put up the grain bins and a machine shed with my own money. My brother is claiming that I took advantage of paying storage on my own bins and shed and not giving it to my Mother. I put up 4 large bins and a machine shed with my own money over the yrs. There is 3 small bins a barn and another machine shed on the site. The original rental deal although verbal was that in renting the whole farm I was allowed to use all bldgs. and bins. My brother knows this as we used to farm together. I say considering the original rental agreement and also that I put up the bins myself that I was not taking advantage and should not of been paying rent on them. Who's right?
Thanks Kirk!.........Just a couple last things, I think. Just to clarify, I'm trying to determine if my brother and Mother both agreed to sell the grain bins then who is entitled to the money? Also, I have a sister who has a share and she is set to receive just farm land. Can she sell her portion if my Mother agrees? Do you know at what point in time her tax basis would be determined. Would it be when everything was willed to us 3 kids when my Dad passed away in 1995 or when we separated each ones portion out a couple of yrs. ago or would it be at the point of sale? Thanks!
If your mother and brother both agree to sell a grain bin, then your mother would get a portion of the money for her life estate interest and your brother would get the rest of the money.
The life tenant can only sell what she owns, and that would be the right to use and occupy the property - - including the grain bins. SO, your mother would be entitled to the value to her for using those bins, which can be a difficult amount to ascertain. USUALLY, the owner and life tenant just come to a lump sum amount that they can agree to. But, the owner gets the majority of the money.
Yes, your sister can sell her interest in the land IF her mother agrees to it. The same money-splitting would apply there as well.
As for your tax basis, the general rule is that the recipient's basis for inherited property is stepped up (or stepped down) from the decedent's cost to the asset's fair market value at the decedent's date of death.
So in my sister's case the basis could be determined at the at the time of my Dad's death or if she waited to sell when my Mom passes at that time,right? Another thing regarding the grain bins and shed. If I had put them up with my own money do I have any claim on them now? Thanks!
Thanks Kirk! Very helpful! One last thing and that's it. So I assume I couldn't claim the bins and move them to my place and use them? Thanks!........Charles Have a good day!
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