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Barrister, Attorney
Category: Estate Law
Satisfied Customers: 38220
Experience:  17 yrs estate law, real estate. Wills/Trusts/Probate
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Real estate was sold in 2015 that was part of an estate. The

Customer Question

Real estate was sold in 2015 that was part of an estate. The decedent died approximately 30 years ago. She left a life estate to two of her siblings. Upon the death of the last survivor the property was sold.
Is the basis in the property the date of death value of the decedent, 30 years ago, or would it be the value at the time of the last sibling death?
Big difference.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Barrister replied 1 year ago.
Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question..In a situation like this, at the time of death of the owner, the property would have received a "stepped up basis" to fair market value at that time. That FMV would have been divided between the value of the life estate and the value of the remainder interest. Then the remainder interest owner would have their basis fixed at that time for tax purposes..For example, if the house was worth $100K when the deceased died, and the life estate was subsequently valued at $35K, then the remainder interest is valued at $65K and that is the cost basis that would be used later for any capital gains calculation. .The remainder interest value becomes fixed at the time the remainderman receives it as a gift, which would be back when it was either gifted or inherited from the decedent...thanksBarrister