I have tax
questions on the sale of my deceased father-in-law
's house and the tax forms
I'll need to complete for his estate/trust. Dad had 4 sons and the trust states
everything be split 4 ways. The bulk of his estate was in a Living Trust of which one of his sons is trustee. My husband is the personal
representative. My husband and I are purchasing the house from the trust. The date of death appraisal on the house was $208,000. Each of the 3 brothers are transferring $16,667 of their part of the proceeds to us
because we took care of Dad while he was alive and are now taking care of the estate matters and disposal of personal property
. Here's the breakdown:
$208,000 value of house
-$ 52,000 my husbands 1/4 share
-$ 50,000 3 brothers splitting
$106,000 our sales
1. Does this arrangement cause any tax consequences for the other brothers? Will what the brothers are giving us be considered a gift? I understand the annual exemption for gifts $14,000 for this year.
2. Dad died in March. Do we have to file Form 1041
within 6 months of date of death?
I will have lots of questions and plan on buying the unlimited questions plan.