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[quote=Anonymous][quote=Anonymous]Thanks PPs. She’s 88, has just the one son, and her husband died about four years ago. She did sign a POA years ago, but it needs to be updated as her son was primary and her late husband was secondary. So if anything happens to her son, there’s no longer a back up, and closest living relative after her son is NOT a trustworthy individual (think theft and fraud).

For now, she has not been formally declared incapacitated, but she really does not have the capacity to make reasonable judgments about her care or financial decisions.

She and her husband bought the house close to 50 years ago, so yes, there’d be a lot of gain. If her husband died 4yrs ago would she also get “credit” for the step-up of his half the property? If so, that would help a lot, but there would still be a pretty meaningful gain.[/quote]

4 years ago?  Definitely consult an attorney (to get an accurate answer on how exactly when she would need to claim the exemption by) and get going if you even think she will sell.  Every house needs fixes to be in its best shape before going on the market.  You also need to talk to some realtors to get their ideas on what needs to be done and what you should ignore and let the buyer deal with.

How were she and her husband holding the property?  Was it only in his name (pretty common even in the 60s and 70s) and then transferred to her upon his death?

FWIW I would probably hold onto it and keep renting it out for the monthly rental income but that's me.  If you think you want to sell then you need to get your rear in gear to get it done before the ability to use the husband's exclusion would run out.  [/quote]

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