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Richard, Attorney
Category: Estate Law
Satisfied Customers: 55723
Experience:  29 years of experience practicing law, including tax and estate planning.
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Question... My father just passed away and our mother is

Customer Question

My father just passed away and our mother is still living. My mother is wanting to "sell" my brother her home. The home is valued at $180,000. There are 3 siblings...each of which would receive $60,000. My brother would like to structure the "sale" as follows if possible however, I need your advice on the best way to go about this process so that our mother and us siblings do not have to pay extra taxes if possible. My brother "purchases" the home for $60,000 (his portion of inheritance so no money exchanged), he gives my sister a lump sum for her portion along with a 5 year pay-out plan not documented if possible. I owe my parents money from a past loan so my amount would just be a "wash". What is your suggestion as far as paperwork goes to where this is all legal, but still works in all of our advantage tax/inheritance/income tax goes?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Richard replied 1 year ago.

Good evening. My name is ***** ***** I look forward to helping.

I've got good news for you. You're not going to have any taxes involved here. Texas is a community property state. And, under the tax law, when a couple lives in a community property state and one of them dies, the entire property (not just the 1/2 owned by the spouse that died) gets adjusted to its fair market value. That means that then when it gets sold for that fair market value, there is no gain on any sale and thus no tax due. And, there is no Federal estate tax unless the estate is worth more than $5,430,000 and there is no Federal inheritance tax at all. Further, Texas has neither an estate tax nor an inheritance tax. So, no matter how you structure this, there will be no tax. :)

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