Legal Question in Real Estate Law in New York

A few problems, starting with the fact that your mother's wishes (giving you life estate and only covering maintenance) were verbal and not specific, so not really binding on everyone. How did she define "maintenance"? This goes to the question about property taxes and the responsibility for fixing-up costs. If not included in the definition of maintenance, property taxes is a three-way obligation, but you might be responsible to pay rent based on your life estate and no specific written instructions or directions on how costs are to be split among the owners. If maintenance is used in its traditional meaning (repairs, etc.), this would be your sole responsibility. Bottom line on income taxes if property is sold at a "profit". First, a new basis for income taxes came into existance when your Mom died, The value of the house on her date of death is the basis. Fixing up costs usually increases basis, even if the potential sales price is not impacted. Thus, closing a wall has a cost, but may not increase the selling price. Also, your life estate may be considered like a rental, and the "depreciation" element of a rental could lower the basis, thus producing a gain when the house is sold. I suggest getting your own attorney, both familiar with real estate matters and estate and income tax matters, to assist you. You might want to consider buying out your sisters, as this may benefit you in the long-run, when the house is fixed up and sold. This is a response to an Internet question and the reply is not intended to be legal or tax advice or as creating an attorney-client relationship.