Legal Question in Wills and Trusts in Illinois
Inheritance Tax?
My brother had his house placed into a trust. He passed away. The house is to be divied up by my brother, my sister, and I. However my daughter would like to buy the house, she will not take out a mortgage. She will pay us off in time. Does either she or any of us need to pay an inheritance or gift tax? If so, is there a deadline in which monies need to be exchanged?
1 Answer from Attorneys
Re: Inheritance Tax?
If the house is owned by the trust, when it is sold the funds would be deposited into the trust account and then distributed pursuant to the trust terms.
The house would be sold at fair market value, or another amount agreed upon by the beneficiaries. The trust would need to report any interest income that she would be paying it on the loan.
I would advise that you consult an attorney to arrange the transaction which is certainly doable if everyone agrees. It will protect all involved.
Good luck to you.
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