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My mom was killed by a reckless driver before completing her will. We hired an estate attorney.
An estate home was going to go on the market for $90,000 ($40,000 less than its tax assessment of $130,000). Its been a rental for 14 years and is in quite rough condition. Pretty decent neighborhood in Midland, TX and home values have been unaffected by the recession in this oil community of 110,000.
I offered $82,000 the week before it was going on the market. The ReMax realtor and our estate attorney agreed to take my offer. The inspection happens next week...May 12th.
I plan to drive 650 miles and fix the home up for about $18,000 and a *lot* of my own labor. I believe that it can sell for $130,000 or more. A gross profit of about $20,000 before real estate and legal fees kick in.
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Last edited by JohnHAdams; 05-06-2011 at 11:13 AM..
I plan to list the house in June. I am in contact with a helpful realtor but the legal and title questions may be hard for her to advise on.
My question is this:
Should I transfer the title to my name so that I have no problems collecting any profit? Then I will likely have to pay the legal title etc fees for the purchase and the sale of the home.
Should I leave the title in my moms name and hope that our estate attorney doesn't make herself a big partner in any profits?
Thanks in advance for any reasoned responses. I'm sure that I will have to clarify a few issues. I'll check in as often as possible.
I would suggest that you speak with a tax attorney on this issue... I would think that this would cause more tax issues for your Mom's estate and for those of you that will inherit from the estate. Ask about the benefits of estate tax vs. capital gains...
sorry - but that's really hard to follow. You're buying a house that your mother owned?? Or your mother's estate is buying a house and you are the representative of that estate??
Normally short-term trusts (trusts that are just dealing with the transfer/inheritance of items) really only exist for as long as is necessary to execute everything. I.E. - when my father passes away his trust will be active as long as my mother lives, to ensure her care. Then when she passes away - if ANYTHING is left (at this rate due to the cost of medical care - there won't be) -- the trust will exist just long enough to settle the final bills and then dispose of the contents of the estate to the heirs.
Its not like we could keep the trust going and a year later buy property in the name of the trust...? So I'm a little confused as to what your saying.
Now - there are some long-term trusts and maybe that's what you have. Definitely a time for yout to get an attorney on your side. In your posts you mention an estate lawyer twice, but can't tell if they're both your lawyer or if one is your lawyer and another represents the house you want to buy.?? Sorry - a very confusing post to try to understand.
sorry - but that's really hard to follow. You're buying a house that your mother owned?? Or your mother's estate is buying a house and you are the representative of that estate??
Normally short-term trusts (trusts that are just dealing with the transfer/inheritance of items) really only exist for as long as is necessary to execute everything. I.E. - when my father passes away his trust will be active as long as my mother lives, to ensure her care. Then when she passes away - if ANYTHING is left (at this rate due to the cost of medical care - there won't be) -- the trust will exist just long enough to settle the final bills and then dispose of the contents of the estate to the heirs.
Its not like we could keep the trust going and a year later buy property in the name of the trust...? So I'm a little confused as to what your saying.
Now - there are some long-term trusts and maybe that's what you have. Definitely a time for yout to get an attorney on your side. In your posts you mention an estate lawyer twice, but can't tell if they're both your lawyer or if one is your lawyer and another represents the house you want to buy.?? Sorry - a very confusing post to try to understand.
I'm buying a house that my mother owned. Due to the estate, I had 33% ownership due to three children. I an purchasing the balance from the estate.
We hired an estate attorney because of out of state homes...like this one. The estate attorney has the duty of managing the legalities of selling these out of state homes.
The estate attorneys job will be done when the homes are sold.
I'm buying a house that my mother owned. Due to the estate, I had 33% ownership due to three children. I an purchasing the balance from the estate.
We hired an estate attorney because of out of state homes...like this one. The estate attorney has the duty of managing the legalities of selling these out of state homes.
The estate attorneys job will be done when the homes are sold.
She is also a tax attorney.
If you're buying the home from the estate, I don't think you will have a choice of leaving the title in your Mom's name...
Your agent (or the listing agent) should be able to give you an idea of cost, or check with local title companies. If you are paying all cash, it shouldn't be very much (no lender fees). You may also want to consider buying title insurance. Regarding a future sale/transfer, the next buyer will want to get clear title from you. Without a title transfer, you won't own the home.
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