Estate and tax ramifacations??

[yves]

What is the name of your state?What is the name of your state? Virginia.. My parents set up a Living Trust several years ago. My father passed away in "96", my mother is trustee. She moved from CA. to VA about 7 years ago to live with my husband and I. Since we had just sold our house, we found another house that would suit our new living arrangement. Mom purchased the house. We agreed to pay taxes, insurance, upkeep, monthly utilities and any improvements on the house. We are mom's sole caregivers (she is 81). I have a half sister that lives in another state and visits once a year for only a few days. My husband and I realized that we gave up our place in the housing market along with the tax benefit of owning our own home and building equity. We came to an agreement with mom as follows...we signed a noterized statement that states that we will be able to purchase the house at the time of her death or before for the price that she paid to buy it originally. We all thought this was fair in light of our prior arrangements. HERE'S THE QUESTION: Do we need a codicile to her living trust since the house is in her part of the trust and not my dad's? Also are there any tax ramifacation or trust issues that could come up because of this arrangement? The only heirs to this estate are myself, my half sister and our offspring. There are two separate living trust. My dad's and my mom's. My half sister is aware of this agreement and agrees with it, according to my mom, but we would like to make sure everything is done legally as I am executor of the trusts. The equity in the house could be quite substansial. If we sold it now in order to move to another area and my husband and I purchased a house using our money and the equity from the sale of mom house, which she wants to do, would there be a tax burden for us or for my mom? Does the trust come into play or is that only after she is deceased? We are just trying to cover all bases before we make any moves that could be wrong or costly. Thanks for any help. : Yves

 

[BlondiePB]

What is the name of your state?What is the name of your state? Virginia.. My parents set up a Living Trust several years ago. My father passed away in "96", my mother is trustee. She moved from CA. to VA about 7 years ago to live with my husband and I. Since we had just sold our house, we found another house that would suit our new living arrangement. Mom purchased the house. We agreed to pay taxes, insurance, upkeep, monthly utilities and any improvements on the house. We are mom's sole caregivers (she is 81). I have a half sister that lives in another state and visits once a year for only a few days. My husband and I realized that we gave up our place in the housing market along with the tax benefit of owning our own home and building equity. We came to an agreement with mom as follows...we signed a noterized statement that states that we will be able to purchase the house at the time of her death or before for the price that she paid to buy it originally. We all thought this was fair in light of our prior arrangements. HERE'S THE QUESTION: Do we need a codicile to her living trust since the house is in her part of the trust and not my dad's? Also are there any tax ramifacation or trust issues that could come up because of this arrangement? The only heirs to this estate are myself, my half sister and our offspring. There are two separate living trust. My dad's and my mom's. My half sister is aware of this agreement and agrees with it, according to my mom, but we would like to make sure everything is done legally as I am executor of the trusts. The equity in the house could be quite substansial. If we sold it now in order to move to another area and my husband and I purchased a house using our money and the equity from the sale of mom house, which she wants to do, would there be a tax burden for us or for my mom? Does the trust come into play or is that only after she is deceased? We are just trying to cover all bases before we make any moves that could be wrong or costly. Thanks for any help. : Yves

You need to see some professionals who can read your documents. These include an estate attorney and CPA or other tax professional.