52

In simple terms, "escrow" is just a way to make sure the seller gets his money and the buyer gets the house (or goods, or whatever is being purchased). It's a way to avoid fraud and other problems. When you go to a store to buy a banana, for example, escrow isn't needed because you hand over some money and immediately walk away with a banana. With ...


14

Suppose I want to buy a house from person X. Person X is willing to sell me his house for 200 k$. I don't have this money, so I need a mortgage. I go to my bank to obtain a mortgage. How does the escrow would work out in this practical example? Let's try to imagine doing this without escrow. Who should the bank give the mortgage money to? They can't give ...


9

Rent doesn't give you any ownership in a property, so is largely irrelevant here. If you were paying rent after the death of your parents, that money would go to the owners of the house (which may include you). Similarly, whether or not someone was evicted is completely irrelevant. If the will specifies how the estate should be divided, that's what's ...


8

Just add it all up. The assets in the estate are worth $105,000. Splitting that equally means that each beneficiary gets $52,500. The one who gets the car gets a car worth $5000 and the rest in cash, $47,500. The other one gets all cash, $52,500.


7

You should value the unit at: The fair market value of the whole property in 1983 (or whenever 25 years ago was) minus what the eldest sibling paid for the whole property minus the expected value in 1983 of free rent to the parents for the rest of their lives, Then convert from 1983 dollars to 2018 dollars.


6

If the house is titled to the estate, neither of you own the house and it cannot be mortgaged. Executor of the will is supposed to provide to you and to the probate court periodic reports as to what is going on. Check them up and talk to your probate lawyer.


6

A more recent article on inheritance taxes than the one cited by @JohnBensin says that Maryland does not charge inheritance tax on inheritances received from parents (and other close relatives as well). Thus, there is no inheritance tax due to Maryland on your inheritance, and of course, estate tax (both Federal and State) is imposed on the estate and ...


6

The second one is correct. One way of getting there is that A simply buys the car from the executor of the estate for $5000. The estate is now $105000. The estate gets split two ways, with A and B each getting $52500.


6

Along with mortgage payments you have property taxes and insurance premiums related to the house that are paid once or twice a year. To normalize the monthly payment many people choose to have these infrequent expenses paid through escrow (also in some contexts lenders may insist), so they pay a bit extra each month, that extra amount is held in escrow and ...


5

Generally cashiers checks do not expire, since they are "like cash" and fully funded at the time of issue. However, whether they can be cashed after a long period of time (and also what the definition of "long" is) depends on the bank. Eventually, if left uncashed it probably would be escheated to the state to wait for someone to claim it. Being that it's ...


5

Maryland is one of only two states (as of the writing of that article) that collects both inheritance tax and estate tax. These are two different issues, and it's important to differentiate between them sufficiently. I can't provide you a definitive answer, so consult a tax professional in Maryland for specific details to make sure you don't run afoul of tax ...


4

Sounds like your grandmother's estate had taxable income and the estate did not pay the estate "INCOME" tax. Rather the estate shifted the burden to pay that tax on the beneficiaries which is why you received a K1. If that K1 reports income received by you, then YES you would have to amend your tax return. I am in exactly that same situation now. After ...


4

Since there's no taxable income (inheritance is not taxed to you), you do not need to amend. The executor used the correct form. Note, I'm not a tax adviser or a licensed professional. For a tax advice advice contact a CPA/EA licensed in your state.


4

If your sister paid rent, she was a tenant. There are laws to protect tenants, but those depend on what country, state, and city you live in. In most places in the US (maybe all), she was owed more than 2 days notice. Normally, the local housing authority could help her figure out what her rights are, but since this already happened, they may not be able to ...


4

Contact the trust departments of your local banks and find out what they offer. Determine what their annual trust administration fee is as well as possible fees for investment management (percentage of assets under management), distribution adviser or a trust protector, tax preparation and legal services. Some trustees bundle all of these together. ...


4

There are two different possible taxes based on various scenarios proposed by the OP or the lawyer who drew up the OP's father's will or the OP's mother. First, there is the estate tax which is paid by the estate of the deceased, and the heirs get what is left. Most estates in the US pay no estate tax whatsoever because most estates are smaller than $5.4M ...


4

Escrow solves the issue of trust between a buyer and a seller during a transaction. From the buyer perspective - what happens if I pay the money but I dont receive the good ? From the seller perspective - how do I know the buyer is serious and will actually pay me the money when I give them the good ? Escrow is a trusted third party who will take the money ...


3

She is very wrong. If the IRA is a traditional, i.e. A pretax IRA (not a Roth), all withdrawals are subject to tax at one's marginal rate. Read that to mean that a large sum can easily push her into higher brackets than normal. If it stayed with her, she'd take smaller withdrawals and be able to throttle her tax impact. Once she takes it all out, and ...


3

In the United States, the answer is no. Life insurance proceeds pass by operation of law. In fact, it would be a taxable event to pass it as a gift to the estate; your wife would have to pay the tax. The giver pays the tax. So you need a local attorney if there is any serious consideration of doing this. Now there is another issue. If the overall ...


3

It is possible for him to get a loan against the house as long as the deeding all takes place at the same time as the loan is closing. Basically you and your brother will both have paperwork to sign, and the title company will not send out checks until the loan funds from the mortgage company. For that deeding to take place, the estate will generally have ...


3

The normal process - You open a new IRA at the broker. It's titled "my beloved mom's name, deceased, for benefit of my name, beneficiary." You produce a copy of death certificate and the broker confirms the account had you listed as beneficiary. They transfer the assets into the bene account. OR The account stays in place but is retitled as I note above....


2

Generally, it would be an accountant. Specifically in the case of very "private" (or unorganized, which is even worse) person - forensic accountant. Since there's no will - it will probably require a lawyer as well to gain access to all the accounts the accountant discovers. I would start with a good estate attorney, who in turn will hire a forensic ...


2

It seems like a potential solution would be to provide the distribution as annual stipends divided among the still-living beneficiaries. Each year, the beneficiaries who are still alive would receive a payout. The share of the estate that would otherwise have gone to relatives no longer in a position to benefit would become a bigger pot for the remaining ...


2

The cottage belongs to the owner of the main home. It was not left when they passed. The other assets are part of the estate and should be split via the will. If as you suggest, for some reason they all (i.e. the house owner esp) wishes to include it. I could make the claim that it has no value separate from the main home as it can't be partitioned. Will ...


2

Yet another way of looking at it (they all essentially amount to the same) is that: The total estate is valued at $105,000 ($100,000 cash + $5,000 car). Give the car to A and match it with $5,000 cash to B. That leaves $95,000 of cash in the estate, or $47,500 to each of A and B. A receives a total value of $52,500 ($5,000 car + $47,500). B receives a total ...


2

Anything that lets someone do something with your property is an asset to that person, and a liability to you. So both the lease and the option are assets to the tenant, and liabilities to the estate. The only assets that the estate has is the property and the $25,000 payment (either as cash or accounts receivable, as the case may be). The estate is pretty ...


2

My guess would be that you got that information by calling a toll free number for the insurance company where you're less likely to get people used to dealing with non-standard circumstances like yours. Them saying he has to become the owner is laughable...why stop at the insurance policy? If you're the beneficiary of your aunt's entire estate, then, there ...


1

I don't know how you presented the question to your attorney, but there is a step up in basis when one spouse dies. From WHEN ASSETS GET A ½ STEP-UP IN COST BASIS However, what happens to assets that are owned jointly with a right of survivorship when one spouse passes away? Did you know in this scenario, it is possible for assets to receive a ½ ...


1

A and B split the liquid assets. The value of non liquid assets is determined by the executor of the estate. If no executor then A and B must determine and agree on the value. If A wants the asset, he pays half the value to B (either directly or out of the amount to be received from the estate) which would be your second scenario 'A gets $47,500 and B ...


1

If the cottage was built with permits, as you say, the property was re-assessed at the time it was built, presumably with a substantial increase in value attributable to the cottage. You can use that to decide what percentage of the total current valuation (use Zillow or Trulia for a rough estimate) is from the cottage. This won't work if the sale to the ...


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