What is the name of your state? Colorado, but the estate is in Illinois 
My father’s uncle died and left land to my father as a life estate and the remainder interest to my two brother’s and myself. The four of us would like to sell the land which is currently in probate. The tax return has not yet been filed but is due in about a month. I was informed by the executor that the land was valued using the special use valuation, which reduced the total estate by $940,000 and reduced the value of our share by $114,000.
Here are my questions:
If we sell the land while it is in probate, is the recapture on the tax savings immediately taken out or are we responsible for the difference after probate closes?
Can my father request to be in charge of the sale of the land? (It was appraised at $870k at the time of death but my father believes he can get a lot more for it and does not want the executor to sell it at the appraised value).
If the land is sold for more than the appraised value, do we pay additional estate taxes on the land or do we pay capital gains taxes on the difference? If it is the latter, is that paid immediately or after we actually receive the inheritance?
My father would like the money split 4 ways equally even though his life estate is valued at 79%. Would we need to wait until after probate closes and do a joint sale in order to divide it according to my father’s specifications or can the executor divide it 4 ways even though our respective interests are not divided as such?
I apologize for the many questions. If anyone has any insight about any of the answers, please let me know. Thanks in advance!What is the name of your state?
My father’s uncle died and left land to my father as a life estate and the remainder interest to my two brother’s and myself. The four of us would like to sell the land which is currently in probate. The tax return has not yet been filed but is due in about a month. I was informed by the executor that the land was valued using the special use valuation, which reduced the total estate by $940,000 and reduced the value of our share by $114,000.
Here are my questions:
If we sell the land while it is in probate, is the recapture on the tax savings immediately taken out or are we responsible for the difference after probate closes?
Can my father request to be in charge of the sale of the land? (It was appraised at $870k at the time of death but my father believes he can get a lot more for it and does not want the executor to sell it at the appraised value).
If the land is sold for more than the appraised value, do we pay additional estate taxes on the land or do we pay capital gains taxes on the difference? If it is the latter, is that paid immediately or after we actually receive the inheritance?
My father would like the money split 4 ways equally even though his life estate is valued at 79%. Would we need to wait until after probate closes and do a joint sale in order to divide it according to my father’s specifications or can the executor divide it 4 ways even though our respective interests are not divided as such?
I apologize for the many questions. If anyone has any insight about any of the answers, please let me know. Thanks in advance!What is the name of your state?
