Legal Question in Wills and Trusts in New York

Re: Lifetime tenancy

She, as well as the two children, would have to sign the contract of sale and the deed.

Re: Lifetime tenancy

You can sell the home as long as your mother agrees to it.

The sale will result in the normal "consequences" such as capital gains tax issues. If you should decide to move forward with the sale, I would recommend that you retain an attorney who can handle the tax issues as well as the sale.

Please feel free to contact me if you should decide to move forward--I have experience in these areas.

Re: Lifetime tenancy

I AGREE WITH JOHN AND NORMAN ON THE PROCEDURAL REQUIREMENTS THAT MOM MUST JOIN IN THE CONTRACT AND DEED TO TERMINATE HER LIFE ESTATE. THE TAX CONSEQUENCES ARE A LITTLE TRICKY. THE ORIGINAL GIFT TO THE CHILDREN RESULTED IN WHAT IS CALLED "TRANSFERRED BASIS" WHICH IS YOUR PARENTS ORIGINAL COST PLUS THE COSTS OF ALL IMPROVEMENTS MADE OVER THE YEARS, LESS ANY DEPRECIATION, IF THE HOME WAS EVER USED FOR A BUSINESS AND DEPRECIATION WAS CLAIMED. THIS IS YOUR COST FOR THE DETERMINATION OF PROFITS AND INCOME TAX CONSEQUENCES. THE LIFE ESTATES OF YOUR PARENTS ALSO EFFECT "BASIS". IT IS POSSIBLE THAT WITH MOM JOINING IN THE SALE, THERE ARE 3 TAX RETURNS TO BE FILED: HERS ON THE SALE OF HER LIFE ESTATE, WHICH MIGHT ALLOW SOME TAX BENEFIT SINCE SHE IS SELLING HER HOME, PLUS RETURNS FOR THE CHILDREN. I SUGGEST YOU CONSULT A GOOD ACCOUNTANT TO TRACE THE VARIOUS INTERESTS AND TAX BASIS FOR EACH PARTY. ANY PROFITS TO THE SELLERS WILL BE TAXED AS LONG-TERM CAPITAL GAINS, WITH A MAXIMUM OF 15% TAX RATE.