Legal Question in Wills and Trusts in California

Deceased adult estate is a building he owned free of any liens, prior to death he sold building to third party who is making monthly payments. Only heir to deceased is 74yr old mother who deceased lived with. Building buyer wants to pay-off building which is $179,000.00. Deceased had no will and mother is looking at probate to be able to sell building and obtan building pay-off. After probate and mother gets the inheritance ($179,000.00) because she is only heir, will she have to pay inheritance or estate tax federal (or) state? She lives in Califorina and the building being payed off is in same state. There are no other assests than the $179,000.00.

Asked on 12/06/11, 5:32 pm

2 Answers from Attorneys

Jennifer Rouse Meissner Joseph & Palley

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If the only asset is a promissory note with a date of death appraised value (as appraised by a probate referee) of $179,000, then there are no inheritance or estate taxes. If the son died in 2011, his exemption from federal estate taxes is $5,000,000. California has no inheritance taxes.

It sounds as if the building has already been sold and the decedent held a note made by the buyer of the building. There would be no need for the mother to get authority to sell the building since it already has been sold. However, a probate is still necessary assuming that the decedent held the note in his name alone.

Answered on 12/06/11, 5:37 pm

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