Legal Question in Wills and Trusts in Florida

Re: right of survivorship

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While the house will not have to go through probate if the deed was executed properly, your mother may have made a very costly mistake. By executing a quit claim deed including your husband and his sister, they have taken title to the property (although it may be a future interest) and have assumed mom's basis in the property. Their basis is the same as mom's or $40,000.00. Upon the sale of the property they will have to pay capital gains taxes on the difference between the selling price less costs of sale and the basis.

Had the property transferred upon the death of mom, the beneficiaries would have gotten a "stepped up" basis equal to the value of the property on the date of death of mom. Many people do not seek the advice of a competent attorney and make the same error in judgment.

I strongly suggest that you visit with a local attorney to discuss estate planning methods.

Scott R. Jay, Esq., 305-249-8000