Indiana Filer
Senior Member
What is the name of your state? Indiana
I became a land baroness yesterday! Actually, my mother-in-law transferred a portion of the family farm into my name and my husband's name a few years ago, but I just found out that my name was on it yesterday. I thought she had just transferred it into my husband's name, but I guess she decided I was a keeper, so when she did the transfer, she put my name on there too. My husband's sister got one third, and his brother got the remaining third. (Their spouses weren't added, BTW.)
I explained to my husband that it would have been better, tax-wise for all the children, if they had inherited the land once she died, but it's too late for that. I know she did it so that, if she needs long-term care, the family farm is safe. How do we figure out our cost basis in the place?
She and her husband bought the land back in about 1941, and built a house, a separate garage, and five barns/outbuildings. We got less land than the others, but we got all the buildings. I doubt she has any idea how much was spent on each building over the years.
She and Pop owned the place jointly, with rights of survivorship, and he died 15 years ago. Since she then became full owner, does that mean that the cost basis of half the farm is now what it was in 1941, and the other half is the value in 1992?
My husband asked if it would be possible to transfer it back to her name, and then let her leave it to us in the will as a way to increase our cost basis in the place. Is it too late for that option? I don't know if she'd go for that anyway. I'm willing to risk the land to pay for a good nursing home for MIL if she needs one. After all, that's my kids' Mamaw, and I want her taken care of.
I became a land baroness yesterday! Actually, my mother-in-law transferred a portion of the family farm into my name and my husband's name a few years ago, but I just found out that my name was on it yesterday. I thought she had just transferred it into my husband's name, but I guess she decided I was a keeper, so when she did the transfer, she put my name on there too. My husband's sister got one third, and his brother got the remaining third. (Their spouses weren't added, BTW.)
I explained to my husband that it would have been better, tax-wise for all the children, if they had inherited the land once she died, but it's too late for that. I know she did it so that, if she needs long-term care, the family farm is safe. How do we figure out our cost basis in the place?
She and her husband bought the land back in about 1941, and built a house, a separate garage, and five barns/outbuildings. We got less land than the others, but we got all the buildings. I doubt she has any idea how much was spent on each building over the years.
She and Pop owned the place jointly, with rights of survivorship, and he died 15 years ago. Since she then became full owner, does that mean that the cost basis of half the farm is now what it was in 1941, and the other half is the value in 1992?
My husband asked if it would be possible to transfer it back to her name, and then let her leave it to us in the will as a way to increase our cost basis in the place. Is it too late for that option? I don't know if she'd go for that anyway. I'm willing to risk the land to pay for a good nursing home for MIL if she needs one. After all, that's my kids' Mamaw, and I want her taken care of.
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