Legal Question in Wills and Trusts in Texas

the house or the money

my mother (82) yrs. old, is the executor of my father's will. He left me an unknown sum of money (mother won't tell me how much). She wants to keep the money and give me the house which is worth about $65,000 to $70,000. If I accept the house, I think I would have to pay capital gains tax whereas if she gives me the money, I wouldn't have to pay taxes on it because the money would be an inheritance. She says if I want the money, she will give me $32,000. Which would be the best thing to do...accept the house or the money.


Asked on 12/16/04, 10:06 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: the house or the money

I can't tell what would be best. I can tell you that if your father's estate has been entered into probate, you can move the executrix (your mother) for an accounting if the probate is at least one year old. Then she's obligated to disclose how much money your father left to you and you can make a better determination.

If your mother took the house as her portion of the estate in probate, and she then gives it to you, she'll have to pay gift tax since it's well over $11,000. Your basis for subsequent capital gains would be the value on the date she gifted it to you.

If she feels she needs the money for her survival, I'm sure some sort of accomodation can be reached. You might simply ask her why she's being so secretive.

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Answered on 12/16/04, 10:35 am


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