Legal Question in Wills and Trusts in Wisconsin
My father-in-law recently passed away. He had a little over $100,000 that was devided equally between my husband and his sister. Since this was an inheritance, will they need to pay taxes on it?
The house will eventually be sold. It is paid off. Will my husband and his sister have to pay capital gains on that?
The entire family all live in Wisconsin.
Thanks in advance,
Mary Benoy
1 Answer from Attorneys
In Wisconsin, there would be no inheritance tax on the $100,000. Likewise, there is no federal estate tax on such amount. There are some simple probate procedures that need to be followed to assure the transfer of such property exceeding $50,000 gets to the recipient without liens on it. You should see an attorney to do that for you. If you don't, you will have a problem when it comes time to close on the sale of the home.
The home gets valued at the date of death value, which should reduce any gain or loss for income tax purposes. If it gets sold soon enough after death, that sale value could be used and then no gain or loss occurs. Again, you should see an attorney to do this correctly.
Good luck!
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