Legal Question in Wills and Trusts in Florida

Without finding out more, you may very well have no issue at all! While a 1099 is always required, it doesn't automatically mean that any tax on a gain is due. Normally, the date of death decides the value of the realty, and a market value should have been received at that time. The original cost of the realy by the decedent is "stepped up" from its original cost basis to the market value as of date of death. That is the value that is used to determine if there is any gain on sale that is passed through to the beneficiaires. e.g. if the house was valued on date of death at $150,000 or more and it sold at the $60,000 then there is a loss, that is not re captured by any of you, but there also is no gain, and therefore nothing to worry about if it was done correctly.

Further unless the Will itself stated that the property must be sold first which would have prevented the closing of the probated estate, there might be a good reason for passing it out to all of the beneficiaries in kind. If the estate remains open due to requirement to sell the realty, or personalty by the Will itself, and it is a poor market for re sales, this could cause deaths or guardianships of the beneficiaires to further complicate everyone's lives in addition to costing a good deal more money. I have often drafted a temprorary 2-3 year trust (subject to extension) ageed to by all beneficiaires through signed consents, for the PR or someone else to become the Trustee, and then have the PR assign or convey the realty into said trust. This would permit very good flexibility and provide for subsequent death's or incapacity of the Beneficiaries etc. without tying up the probate estate and permit it to close in normal course.

Hope this helps some, if so pass it on to all the beneficiaires that may be complaining at this time.