Legal Question in Wills and Trusts in Pennsylvania

selling a home to avoid probate

My elderly aunt is in a nursing home and will never return home. I have her power of attorney with the right to sell her home. I am also her executor and will inherit her home (her only remaining asset) when she passes. My question is: Is it more advantageous for me to sell her home now (while she's still alive) than to go thru the cost of probate? (It's worth about $25000). Since I have her POA, am I allowed to buy it (probably for $1), since I would be signing for both seller and buyer? (I would not want to be added to the deed now since I would assume her tax cost basis - she paid $5500). Thank you for your consideration.


Asked on 8/20/02, 10:26 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: selling a home to avoid probate

You do not say if your aunt is on medicaid and how the house may enter into the payment requirements. If the house is sold in your aunt's name, the funds may be required to be used to pay the nursing home costs. If she is on medicaid, I need to know this to try to assist you, has the house been declared an exempt asset. If so, and you do not live in the house and want to avoid income taxes, you must wait until she passes away. Only the person whose house is their primary residence can avoid the tax, if they lived there for 3 of the preceeding 5 years, as their primary residence. However, if you inherit the house, you acquire a new cost for tax purposes, being the date of death value. If the house is then sold for the date of death value, no income tax. If you'd like to discuss this, call me at 973-377-3313.

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Answered on 8/20/02, 11:56 am


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