Legal Question in Wills and Trusts in New Jersey

Re: Wills and Property

There are advantages and disadvantages to both choices.

I do not give tax advice, so you should check this out with someone who does: If you buy it now at a low price, and then sell it later at a substantially higher price, you may have to pay tax on the difference. If you inherit it, you would be deemed to own it at the market price as of the time when you inherit, so there would be less of a gain when you sell it.

If the house is left to you by will, the will may be changed before your mother dies, or your other may have sold or given it away, and you would not inherit the house.

Also, who are the "we are all"? If you are more than 2 people, [spouses, or 2 other partners], you will more than likely run into problems -- usually everyone does not agree about how maintenance expenses are shared, what maintenance should or should not be done, and other decisions about the house. If any co-owner wants to leave, or wants to be able to live there without the others, there are also areas for disagreement.

You should "all" talk about those issues now and come up with a written agreement that deals with different possibilities, to avoid serious disagreements and legal hassles later.

Re: Wills and Property

I agree with Miriam that this is a complicated matter, for all of the reasons she states, and there is no simple answer. There are income tax, death tax, gift tax issues, just to name a few. Also, there are operational issues to consider as well, such as who would be responsible to pay all operational costs (taxes, insurance, utilities, etc.) and/or if major repairs are needed, who would pay them and what happens if someone does not contribute or cannot afford to contribute. These are things to consider whether or not Mom acts now or later, by Will. I suggest you all speak with a tax advisor, familiar not only with the tax issues, but also with real estate and business formations, as many, and some conflicting, decisions need to be made. This is a family situation and all members should be consulted, so when final decisions are made, all are aware of them and all agree. Whatever is decided, it should be in writing and all parties sign it, so there is no confusion down the road or the possibility for family litigation. Contact me directly if you need more information or assistance.