Rules around Property after mom passes away
Terry,
My mother passed away 2 weeks ago. She has a will. My brother is the executor. She owns a house in Chicago. (for about 35 years). Her will says we divide it three ways between me, brother, sister. We are not in a hurry to sell but my brother said something about we need an appraisal within 30 days after her passing. Something to do with taxes. Does this make any sense? Not sure what he is referencing. (he lives in California) Wondering what else we need to be doing since she passed. Thanks for any recommendations you have.
Thanks!
Terry Says
OK, I’m sorry for your loss. And you don’t need to sell immediately, but I’m going to recommend you do sell in the near future — and divide the proceeds evenly per her will.
The reason to get an appraisal done now (by a realtor) is to establish the value as of “the date of her death” or within a few months. Since the new tax basis is the value of the home at the date of her death, there will be no taxable gains if you sell it soon, within the year. That’s one less thing to worry about.
If you hang on to it, let someone live in it, the value could go up. Any”rent” they pay to the others would have to be considered, and there could be a taxable gain. That’s why you’re best of disposing of the home in the coming months and distributing the money.
