Legal Question in Real Estate Law in Maryland
deed to property
my mother added my name to the deed of her house. She passed away a few weeks ago. To have her name taken off the deed do I have to pay inheritance tax?
1 Answer from Attorneys
Re: deed to property
No. You didn't inherit the property from her, and even if you had, an inheritance from parent to child is not subject to Md inheritance tax. However, since you presumably paid no consideration when she added your name, it would be subject to gift tax, but unless she had an estate worth over $2M, you wouldn't owe anything. However, by obtaining a half interest in the property before she died, your taxable basis in it is greater than it would be if she had just left it to you in her will, so when you sell the property you may owe a greater capital gains tax unless you occupy it as your principal residence for at least 2 years before sale.