MOTHER'S HOME

[Marie]

Mother put only daughter on her home so it would pass easily.  mother died and daughter sold.  Daughter never lived in the home.  Does she get full FMV on the home or only FMV on the half she inherited? 

[schirallicpa]

Get a copy of the legal document and see how it transferred.

Usually its the daughters 100% at passing.

[Lee B]

Or by putting the daughter on the Title did the mother gift 50 % of the home to her daughter?

[Gail in Virginia]

Or was an informal life estate created?

[Marie]

I would imagine there was an informal life estate.  daughter was only child and it was done just to simplify 

[jasdlm]

3 hours ago, Marie said:

I would imagine there was an informal life estate.  daughter was only child and it was done just to simplify 

Why can't people just use transfer on death deeds?  I guess there are still some states that don't recognize them.  It makes basis so much easier!

[Gail in Virginia]

It is my understanding that if a life estate was created, and the mother retained all the incidences and responsibilities of ownership until she passed away, the daughter would still get the step up in basis when the life estate ended and she received the property. 

[Abby Normal]

21 hours ago, cbslee said:

Or by putting the daughter on the Title did the mother gift 50 % of the home to her daughter?

It would be an incomplete gift.

[Lee B]

Discussion thread with a lot of hypothetical ideas and a significant lack of substantive facts.

Assuming this client lives in MO, the state of the poster, more than likely state law will be the determining factor in how this all ends up.

 

[Sara EA]

If the mother continued to live in the house and paid all the bills, it is definitely an implied life estate.  As such it is included in her estate so the daughter gets step-up.

[Marie]

thanks for all the comments.  Always good to get other views.