Legal Question in Wills and Trusts in California
Transfer House to Trust and Capital Gains concern
I was married for 10 years got divorced last April ex passed 3 weeks later. He set up a trust and girlfriend was trustee. The title was a joint tenancy w/rights of survivorship. House sold 2-3 months later. Deeds were recorded this way. Girlfriend and Trust quitclaimed the buyer, and I grant deeded the buyer. There is no deed recorded on my ex's side transferring the house to the trust. Right before the sale I found out the house was going to be foreclosed and had to come up w/3 mortgage payments. I was not in the home, ex and gf had fiduciary responsibility. So when I called bank they already knew ex was dead and I mistakenly took on sole responsibility for the mortgage. Credit got dinged and the paperwork from the title company shows that I must report the entire sale since I took on the mortgage.
Was this wrong. Will I have to pay all the capital gains tax. Bought house for 259k and sold for 600k. Will I have to pay extra on the capital gain tax. The MSA reflects he rec'd half of the monies from the sale. Also was the joint tenancy not severed correctly since no deed was ever recorded transferring ex's share of the house to the trust.
2 Answers from Attorneys
Re: Transfer House to Trust and Capital Gains concern
these questions involve the interaction of divorce law and income tax law (including the sale of residence rules, the divorce rules and the income tax step up in basis rules). you should have the msa and real estate documents reviewed by the attorney who represented you in the divorce and a qualified tax attorney or cpa.
Re: Transfer House to Trust and Capital Gains concern
get yourself a good expert attorney in real estate law, esstate planning, tax law now, yesterday, and immediatly
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