Legal Question in Real Estate Law in Arkansas

disposing of land prior to death

I am not from your jurisdiction, nor from the state where the land is located, so I am not able to give you detailed information of the specifics involved, but I do havea notion or two that I hope are helpful.

1. If your mom dies owning the property, and you wished to get rid of it, it will take a probate proceedingto do so, if it is in her name only. If it is in her name and someone else's as joint tenants with right of survivorship,then it would pass directly to the surviving joint tenant. There may be some tax consequences, but I can not comment on themwith the little information I have, and not being from either state.

2. Generally speaking, if you do nothing after her death and do not pay taxes,eventually the town or city or county will take the property for unpaid taxes.

3. There maybe some liability to her heirs at law if someone is injured on the property, just likethere is some liability exposure to her while she is alive.

4. Have you tried to find out who the neighbors are and asking them if they want the lots for$500, or something like that?

5. You may also try finding out if there is some sort of nature conservancy for the area that wouldaccept a donation of the land, and keep it "forever wild" or undeveloped. This might also get your moman income tax deduction.

I'm sorry to hear of you losses, and wish you good luck.

Regards,

Alan

Disposal of Land.

I am not an AK attorney and, as with all disclaimers, you should consult an AK attorney to determine your legal rights. However, if you were in GA and I had no more information than you gave me, I might discuss with Mother the possibility of simply quitclaiming the land to her children. It sounds like her estate is worth less than $600,000. If that is correct, she should be able to dispose of property to any one without incurring any gift tax.

She can leave it to you by will. It will have to briefly go through probate, however, you will pick up her date of death basis as opposed to her purchase price basis in the land. Capital gains tax appreciation on the run up between the value of the land when purchased and the value at the date of death will be forever avoided.

She can give $10,000 away per year tax free for any reason, regardless of the size of her estate. If the land is not worth much, why not get some stationary store issue Quitclaim deeds and have mother quit claim the land to her children (you) and be done with it. Then, the land will be you land and will not be part of her gross estate at death.

Caveat: If her estate is over 600K (which I doubt), go see a competent tax attorney.

Hugh Wood.

Fairfield Bay property

The state may assess taxes against the land and take it. I'd be glad to check on it for you