The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/does-the-retained-life-estate-by-quotdadquot-24251797.aspx

Subject:  Re: House transfer: Father to Sons Date:  6/20/2006  8:31 PM
Author:  ptheland Number:  87486 of 121181

Does the retained life estate by "Dad" change any of the responses about basis? What about IRC 2036?

I'm a little unclear on whether they're talking about a life estate or JTWRS. The first comment from the OP mentions JTWRS. Should it actually be a life estate rather than JTWRS, then the valuation of the gifted amount of the house (the remainder interest) becomes an issue. But to the extent that some or all of the house in included in the taxable estate, then there would be a step up in basis. So you do have a point there.

--Peter
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us