Legal Question in Real Estate Law in Wisconsin

If everyone agreed, you might save some expenses by buying it now and documenting the siblings' interest with a mortgage. You might also consider something other than an outright gift from your mother to you and your siblings while she is alive. There can be adverse capitol gains tax consequences from a lifetime gifted, as opposed to an inherited property. If she paid less for the house than its current value and you eventually resold, you would use her basis (purchase price plus improvements) on outright gifted property to determine your profit. These "capitol gains" are taxed at only slightly lower rates than ordinary income tax rates. Inherited properties, on the other hand, receive as their tax basis the value on the date of death (known as a "stepped up basis"), which would reduce capitol gains taxes on a sale later. There are ways to achieve the best of both worlds, although there are also risks any time you leave property in the name of any person whose health might fail. If she could not afford to pay the costs of any long term care which she eventually needed, medicaid could place liens against it, which liens would need to be paid before any inheritance. You therefore need an experienced estate planning lawyer to guide you through the pros and cons of all the different ways which you could structure this transaction.

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