Inheriting a car

What is the name of your state (only U.S. law)? Ohio

Hi,

My mother passed away and her estate consists of a house, an IRA, a Roth IRA, GM bond, and a 2005 car. I have 1 brother and 1 sister. The estate will be split between us 3 ways.

My mother lived and died in Kentucky, whereas I live in Ohio.

My question concerns the car.

My siblings want me to have the car, which is good as my current car is falling apart.

I was told that if I take the car, its value would be subtracted from my third of the estate.

Does this sound right? Why would this be the case?

I thought all I'd have to worry about is switching the title and paying Ohio taxes on the value of the car.

Where does this subtract amount go? The Blue Book value on the car is about $12,000.

I appreciate any help with this.

Thanks!

c5966 said:

I was told that if I take the car, its value would be subtracted from my third of the estate.

Does this sound right?

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Absolutely.

Why would this be the case?

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Because the car is a benefit from the estate.... just as anything else would be.

Where does this subtract amount go? The Blue Book value on the car is about $12,000.

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Lets give an example:
Cash value of the estate is $24,000. Car value adds another $12,000, for a total estate value of $36,000.
You get the car, leaving $24,000 in the estate. Each of your two siblings splits that remaining amount ($12,000 each).
Each of the three children have EQUALLY benefited from the estate. You got $12k (the car), your brother got $12k (cash) and your sister got $12k (cash).

What you seem to be implying is that you get the car PLUS 8K (1/3rd of the remaining $24k) for a total of $20k, while your brother and sister would each only get $8k.

Figure it this way. If you weren't going to keep the car, they'd sell it and everybody would get 1/3 of the sale. You need to give up 2/3 of the price to the others. You might get a little sweeter dale as they may minimize the value for the "ease" of sale and it being family, but you really can't expect a gift.