Legal Question in Wills and Trusts in New Jersey
Here in New Jersey my 2 brothers & i are the only beneficiaries of our mom's estate. The house is in a commercial zone & not in good condition. Whoever buys it will take it down & use the property for a business. Our question is if we sell it before 1 year of her passing would the capital gains taxes be close to the 35% tax bracket? Also the title has both parents on it, when i called the county they said i can sign over the existing title as administrator without the need to change the title. It's a little confusing, i handled the estate & thats almost completed and we would like to know prior to selling the house/property if we should wait until the 1st year has passed to minimize capital gains. Also if the county was correct in stating that as administrator i can sign over the title as is when the property gets sold.
Thanks for any information.
2 Answers from Attorneys
First, upon the death of your mother, the beneficiaries receive a "stepped-up" basis. That means the basis in the property is the date of death value and is not carried over from your mother. Most likely you will not have any gain and therefore no tax.
You should talk to a tax and estate attorney to help you with the estate administration especially since it appears that your father's estate was not completed.
I hope this helps!
Ron Cappuccio
http://SaveYourEstate.com
Upon your mother's death you should get an appraisal of the property. That will be your new basis. If you then sell it for more there would be a capital gain from that value. If you are administrator that means no will and all heirs will have to sign. You should have an attorney review all the papers and documents to protect your interests.
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