Legal Question in Wills and Trusts in Arizona
Greetings:
I have a question in regards to buying out a family member of a house that was willed to her. A little background information: My grandmother owned a house free and clear. She passed away about a month ago. Fortunately, the house had been placed in a trust by my grandmother. Her instructions state that a portion of the house was to be willed to my father and the other portion to my aunt.
After family discussions, I offered to purchase my aunts portion of the house. My father (being in ill health) would like for the entire house to be placed in my name after I "buy out" my aunt.
First, I would like to know what steps need to be taken for me to execute the buy-out. Since the entire house is going to be in my name am I essentially just purchasing the house for the amount equal to my aunt's portion? Will the house ever have to be in my father's name (I would prefer to avoid that)? Do you see any potential tax consequences on my end? What other issues may arise that I need to look out for?
1 Answer from Attorneys
My suggestion is that the Trustee convey title to the house to your father and aunt, as that is the duty of the trustee to carry out the distribution of trust assets as described in the trust agreement. Then, both your father and aunt can quit claim their interests to you and you will have sole title to the property. Your basis for tax purposes will be whatever you paid your aunt for her share. I do not have enough information to give any advice regarding other issues which may arise.
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