Legal Question in Wills and Trusts in Illinois

My wife's father passed 15 years ago. In his will, he left a few hundred acres of farmland to his new wife via a trust, with a stipulation that the land was to be left to his 2 daughters (my wife and her sister) when she passed away. Due to some family drama involving the farmland, his wife signed over the land to both sisters 3 years ago. She is still very much alive.

From a legal standpoint would the land still be considered inheritance? I'm not sure if the laws from state to state are a factor, but the land was located in Illinois, and my wife and I were living in Ohio at the time of the transfer. It has since been sold.

Any help with this would be greatly appreciated!

Thanks so much!


Asked on 5/27/20, 7:48 am

1 Answer from Attorneys
Virginia Prihoda Law Offices of Virginia Prihoda

Reading between the lines, I think what you have is a tax question. At your father's death, his widow received a life interest in the property and your wife and her sister received a remainder interest in the property. There are formulas to allocate these interests based on the value of the property at the date of death. Then, any subsequent transaction affecting the property will have tax consequences measured against the date of death valuation of the life estate and the remainder interest. So, yes it's inherited property, but the basis of the inherited interests are measurable on your father's date of death. Your wife and your sister need to consult with a qualified tax accountant.

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Answered on 5/28/20, 7:52 am


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