Inheritance debacle. WWYD?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Interesting that Thelma's house was left to her by her own parents, yet she's unwilling to do the same for her own kid. Hmmm. Wonder how successful and wealthy she would be if she didn't have such a large nest egg and never worried about having a roof over her head. Seems a tad bit hypocritical.

But in the end, it was her house to do with what she wanted, and Larla, you should be talking to your Grandmother about putting Mary out. This isn't your responsibility, it's hers. Enjoy your inheritance.

Thelma's "kid" is 50.

People are always their parents kids, or children, no matter how old they are. Sometimes people will say "grown/adult kids/children," but frequently people just refer to the kids or children of so-and-so, even when they are elderly.

My cousin and his siblings were left their mother's house, even though they were in their 50s and 60s when she died. One of the brothers was even living in the house at the time. I recently saw the child of one of these cousins and asked how they had handled the situation, since it had similarities to this case.

They didn't do anything- the brother just stayed in the house and paid the taxes and maintence while he lived there. No one thought to push him out because he'd made some bad choices earlier in his life and he had a job that paid enough to live on but not much more. His mother never thought to leave the house to a great niece, instead of her own children. Eventually, the brother wanted to move, so they all helped him put the house up for sale and then they split the proceeds equally.

(The tax basis for the house was the value on the day the mother had died, so there were no tax consequences in waiting. The value had gone up in the years since the mother's death, but not enough to trigger tax on the profit.)

[Anonymous]

The tax basis for the house was the value on the day the mother had died, so there were no tax consequences in waiting. The value had gone up in the years since the mother's death, but not enough to trigger tax on the profit.)

Any increase in value from date of death to date of sale is taxed as a capital gain. So if the value had gone up they owed tax.

[Anonymous]

Anonymous wrote:

The tax basis for the house was the value on the day the mother had died, so there were no tax consequences in waiting. The value had gone up in the years since the mother's death, but not enough to trigger tax on the profit.)

Any increase in value from date of death to date of sale is taxed as a capital gain. So if the value had gone up they owed tax.

Yep, that's right– my cousin must have meant for the brother who was living in the house. Sorry, I know that, but I didn't think it out for the siblings.
They did jointly make some improvements to the house also, so they were probably able to add those amounts to the day of death basis.

[Anonymous]

In case Larla hasn't seen this:
http://www.dcurbanmom.com/jforum/posts/list/605636.page

[Anonymous]

Has the deed actually been transferred to Larla?

[Anonymous]

Op here. Meeting with my grandma and cousin today to discuss what is to be done.

[Anonymous]

Is your name on the deed, so that you're at the point of moving Mary out, or is the will still going through the legal process?

[Anonymous]

Good luck OP! Don't let them railroad you!!!

[Anonymous]

Anonymous wrote:Good luck OP! Don't let them railroad you!!!

It sounds like Larla and her grandmother(who appears to be on Larla's side in this) are meeting with just Mary, so it is two against one. It's difficult for one person to railroad two.

[Anonymous]

Anonymous wrote:Op here. Meeting with my grandma and cousin today to discuss what is to be done.

How did it go?

[Anonymous]

It didn't go to well. My cousin is convinced that she is entitled to stay in the house. I told her that I may sell, so she would need to leave. She is saying that this whole thing is completely unfair. She was very disrespectful to my grandmother (her aunt) so my empathy towards her is diminishing.

[Anonymous]

Anonymous wrote:It didn't go to well. My cousin is convinced that she is entitled to stay in the house. I told her that I may sell, so she would need to leave. She is saying that this whole thing is completely unfair. She was very disrespectful to my grandmother (her aunt) so my empathy towards her is diminishing.

So what are your plans? Do you plan on kicking her out? Has the estate been settled?

[Anonymous]

Anonymous wrote:It didn't go to well. My cousin is convinced that she is entitled to stay in the house. I told her that I may sell, so she would need to leave. She is saying that this whole thing is completely unfair. She was very disrespectful to my grandmother (her aunt) so my empathy towards her is diminishing.

Has the deed been transferred to your name?

[Anonymous]

Get her out, ASAP. Have you met with a lawyer yet? You need to get on this now. The longer you wait, the harder it will be to get her out. You don't want her to establish herself as a tenant, and then have to formally evict her.

[Anonymous]

Anonymous wrote:Get her out, ASAP. Have you met with a lawyer yet? You need to get on this now. The longer you wait, the harder it will be to get her out. You don't want her to establish herself as a tenant, and then have to formally evict her.

For real. You are going to be screwed if you don't get her out soon.