91

Shared property is tricky when agreements aren't made up front, but the right answer in a situation like this is basically whatever you agree to. That said, you own 5% of the property, not 5% of what it used to be worth. I would encourage you not to dismiss the value of that equity over all these years. If you had gotten 5% of the value 25 years ago you ...


62

Lots of people will post lots of advice about what to invest in, or which research blog to read, but definitely the best advice is: Talk to a financial planner As newbie investors there are lots of basic mistakes you can make that will cost you dear. A good financial planner will avoid them, even if they don't get you the absolute best theoretical return. ...


54

I cannot afford a lawyer unless I recover some of the money. That is why many lawyers work on contingency. If you bring them the makings of a strong case, they might represent you in exchange for a share of the payment, only if you win. So doing an initial consultation with a lawyer and showing whatever documentation you have, what you remember, what you ...


41

Technically it is worth what you are willing to sell it for and what he is willing to buy it for. Failing that, it is worth the current market value. If you were going to buy a home, and the you said to the sellers "Hey this property was valued at 25% less five years ago, I would like to pay that price". What would they tell you? They would tell you to ...


16

Let’s make a slight change: instead of your brother buying your share, I’ll buy the whole house at market price, give 95% to your brother, and 5% to you. In each case you should get exactly the same money. If your brother insist you should get paid 5% of $20,000 then you offer to pay him 95% of $20,000 obviously.


14

After a bit of searching, I found a Wall Street Journal article from 2012, “MetLife Settles Unclaimed Life-Benefit Probe”, and a follow-up article the same year “Michigan Joins Metlife Settlement Regarding Unclaimed Life Insurance Benefits”. Apparently, MetLife was involved in a class action suit in 2012 regarding their practice of closing life insurance ...


14

In my opinion that there is no better resource than bogleheads.org. This site is founded on the opinions of John Bogle, who is credited with founding the first index fund. There are tutorials, articles, and very helpful folks that help get you started. If you ask a question, they will ask for more information like your current income and assets, your ...


13

Technically, yes. But it may not be a good idea. You will need to declare it, because it's over $10000. And you will have to explain to the officer why you are carrying $1M. If they don't believe your explanation, they will take the money from you.


10

Surely the simple answer is 'market value'. But this isn't an open market. It's a very small market, probably consisting of just you and your brother. No-one except him is interested in buying your 5%. So the price is what he'll pay and you'll accept. Period. 'Fairness' doesn't come into it. If your 5% interest is blocking his ambitions for the property ...


8

Understand how investing works for yourself You need a freshman's understanding of investing and how the industry works. Fortunately this isn't hard at all: John Bogle's book "Common Sense on Mutual Funds" is a great place to start. You need that so you have enough intuition to recognize poppycock when you see it. We're not asking you to get an MBA. I ...


8

You can usually tell when banks suspect money laundering, because they go very quiet, and refuse to discuss things. Banks will no more contact you to say they suspect money laundering, than the phone company will to say your phone is being tapped. It would be illegal for them to do so. The first thing is: who is the executor for your fiancee's father's ...


8

I don't think you'll find "official reasoning" from the IRS. The most reasonable explanation in my view is that it prevents double-taxation of estate assets and applies a consistent methodology for taxation of inherited property. The estate tax is based on inherited value, not the basis. Say you inherited a $50M estate that had a $1M basis. Upon inheritance ...


8

If you were to instead sell the house would your brother expect 95% of $20,000 or 95% of $300,000? You currently own 5% of a house worth $300,000 and any payout you get for that ownership should be based on the actual value.


7

As nearly everything, it has pros and contras. The benefit of having two assets is to be more diversified. If you have a tenant which ruins your property, and it is your only property, you are in a bad situation. If "only" one of two assets you own is affected, it is still bad, but not so bad as in the other example. On the other hand, as was already ...


7

When the car goes from $400 to $600,000 in probate, will the estate owe capital gains on the car somehow, or does it get the new basis "for free"? No there are no taxes due on this part of the gain (assuming the overall estate is small enough to be exempt from estate taxes) - that's why the "step-up" in basis is so powerful. It's also why "giving" assets ...


7

Note that 5% of what it was worth 25 years ago in today's dollars may be more than 5% of its current worth. $1,000 in 1995 is worth about $1,729 today. Say the house was worth $100,000 in 1995 and it's worth $1,000,000 today. If it was worth $0 today, say it burned down or was discovered to have toxic waste that would cost more than the value of the ...


6

This sounds like a scam. How well do you know this fiancée? There are no such processes as you describe, so chances are that the fiancée is a scammer and is making this up to milk you for money.


5

One intent is to reduce double-taxation. If several people inherit a property with a low cost basis (say a house that was bought decades ago), then the most practical thing is usually for some or all of them to sell it and take the proceeds. With a very low cost basis, the total value of the property is effectively what is inherited. But in the US, there ...


5

First question is who is the executor of the estate? Typically it falls upon that person to do things like file the final tax return. If it is your girlfriend, then she should do so. What I would do is contact a person in the state where her father lived to do the tax returns. Most of the work can be done online. A couple of products to look at are ...


5

Yes your inherited share disqualifies you from using the LISA for a first home, without being affected by the penalty. As I see it your options are to keep the money in the LISA to use for retirement, take the money out of the LISA and take the hit on the penalty, or if its not too late, hold off on accepting the inheritance or don't claim it at all. The ...


5

The term for this is a Chain Marriage. Google results for examples are filled with hits for the phrase "ball and chain", but I did find one example that lasted 117 years. As far as I know, these are not considered the same estate by the IRS, so there would be no presumption of fraud.


5

Since it's a sole proprietorship, all of the business's assets and liabilities will now be owned by the estate. The estate (in the person of the executor or executrix) then handles winding everything down. While still of sound mind and body, the spouse who owns it all should get with an estate attorney and plan all this out (including who will be the ...


5

I think you have things slightly backwards in your head. The £3000 gift exemption is not yours, it is theirs. TL;DR: In no circumstances would you have to pay out money as tax on the gift after the fact, even if the person dies within 7 years. The worst that might happen is that any subsequent inheritance you received would be lower to account for the tax. ...


4

You read. The loan agreement. Then you use basic financial math to calcualate a repayment schedule for the loan for the given interest rate and apply the done payments to it. That rental income was used to repay the loan is a totally irrelevant fact. It is like any other longer term loan ever given from a bank - there is a repayment schedule and you apply ...


4

Is that true? If that is the case, then the person inheriting the house and stock can sell them, say, 5 years later, and if there is no gain, pay $0 tax? And let's say if the law doesn't change, and the house and the stock is passed down to 5 generations, some 200 years later, and the person who sells them also has no gain between the time he receives ...


3

There is no US tax of any kind on inheritances, whether received from the estate of a US tax resident or someone resident outside the US. There may be death duties etc to be paid in the UK but in the US, these are paid by the estate before the beneficiaries get their bequests from the estate. If this is different in the UK, then there may be taxes to be paid ...


3

IRA Designation of Beneficiary: Most are written assuming that the beneficiaries of the IRA will outlive the owner. Will they? Will they all? Are there contingent beneficiaries designated? Are they guaranteed to outlive the owner of the IRA? If not, and if there is no will, the proceeds may be distributed according to your state's rules regarding intestancy. ...


3

Invest the entire amount into an index fund as soon as possible. You're not going to be able to time the market. You're not going to beat the market. You'll be amazingly lucky if you can even get close to average returns since you have to account for fees, even on index funds. Source: https://www.moneycrashers.com/reasons-shouldnt-time-market/ Your current ...


3

One possibility is the IRA contains non-deductible contributions. If non-deductible contributions were made (meaning, no deduction was taken on the contributor's taxes the year the contribution was made for those contributions), then those portions were taxed prior to being contributed, and so they are not taxed - only the income beyond those contributions ...


3

…Given the fact the individual was also an employee of the company? As far as I have been able to determine, the fact the beneficiary was a past employee of a company you owned does not make a difference to your tax liability on gifting. The only tax liability I can see being relevant here is Inheritance Tax (IHT) if you die, which would be paid by the ...


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