Frank Chapman
New Member
- Jurisdiction
- Mississippi
By their Wills, parents left a home to their five heirs. There was no Trust involved. It seems the house will have to be Probated.
Four of the heirs are willing to yield their fifth to a single heir who lives in the house now. Would each of the four heirs file a quit claim deed to the fifth?
Would the act of filing the quit claim deed (or a more appropriate process) be viewed as a "Gift" in the eyes of the IRS and therefore be handled accordingly on each of the four heirs tax submissions?
The heir living in the house continues to make mortgage payments perhaps based on the Garn-St. Germain Depository Institutions Act of 1982. However, since only one of the five heirs lives in the home. Would the Act still apply?
No appraisal was made on the house when the parents passed 4 or 5 months ago. Do they only have six months to get such an appraisal in order to take advantage of the stepped-up-basis? And if they continue to delay getting the appraisal, would the stepped up basis be lost and each of the five heirs would have to deal with the total value of the house as capital gain when sold whether or not they transferred their ownership?
To make matters worse, the heir living in the house is now ill. Perhaps not competent to sign any agreement. She has no POA. Since all five heirs are owners of the house, wouldn't that give any of the five the right to speak with the Lender and to be able to deal with the Mortgage Agreement? Would all five have to agree to a change to the agreement or for its termination?
I know this is complicated. I tried to include as many issues as I could think of and I have made suggestions for what I think is right. Thank you for the help!
Four of the heirs are willing to yield their fifth to a single heir who lives in the house now. Would each of the four heirs file a quit claim deed to the fifth?
Would the act of filing the quit claim deed (or a more appropriate process) be viewed as a "Gift" in the eyes of the IRS and therefore be handled accordingly on each of the four heirs tax submissions?
The heir living in the house continues to make mortgage payments perhaps based on the Garn-St. Germain Depository Institutions Act of 1982. However, since only one of the five heirs lives in the home. Would the Act still apply?
No appraisal was made on the house when the parents passed 4 or 5 months ago. Do they only have six months to get such an appraisal in order to take advantage of the stepped-up-basis? And if they continue to delay getting the appraisal, would the stepped up basis be lost and each of the five heirs would have to deal with the total value of the house as capital gain when sold whether or not they transferred their ownership?
To make matters worse, the heir living in the house is now ill. Perhaps not competent to sign any agreement. She has no POA. Since all five heirs are owners of the house, wouldn't that give any of the five the right to speak with the Lender and to be able to deal with the Mortgage Agreement? Would all five have to agree to a change to the agreement or for its termination?
I know this is complicated. I tried to include as many issues as I could think of and I have made suggestions for what I think is right. Thank you for the help!