Fed Estate Tax question

[EstateQuestion]

What is the name of your state (only U.S. law)? California
Aunt died in 2009 with $4 million in properties. Prior to death, aunt signed deeds giving properties to her sister. Deeds not recorded until after aunt's death. Aunt's will said share properties with all siblings, not just the one sister. Court trial happened and properties given to the estate in 2014. Is Federal estate tax still based on 2009 or date properties placed into the estate? Thanks.

 

[davew128]

The date of death determines the applicable law.

 

[EstateQuestion]

The date of death determines the applicable law.

Thanks for the reply. At time of death, properties not in aunt's name, so the properties are not part of the estate?

 

[Zigner]

Thanks for the reply. At time of death, properties not in aunt's name, so the properties are not part of the estate?

...but the properties were placed IN the estate by the court. I think that it may be worth it to have an attorney review all of the relevant facts of this matter as it seems to go beyond the scope of this forum.

 

[tranquility]

Actually, while I am surprised the court placed properties already transferred by deed into the estate, this is not a complex question. The date of death is controlling. Even if the properties are placed in the estate decades later (As has happened in some cases I have read in the past.), probate would be reopened and the estate tax return amended.

 

[Zigner]

Actually, while I am surprised the court placed properties already transferred by deed into the estate, this is not a complex question. The date of death is controlling. Even if the properties are placed in the estate decades later (As has happened in some cases I have read in the past.), probate would be reopened and the estate tax return amended.

Fair enough - and after reading the OP's prior post related to the same matter, I see that the OP's mother (who is actually the PR) already has an estate attorney helping anyway

 

[tranquility]

In looking at the other thread, the deeded property was brought back to the estate through a constructive trust theory. My surprise is abated.

 

[latigo]

In looking at the other thread, the deeded property was brought back to the estate through a constructive trust theory.

Interesting your mentioning of the constructive trust stuff.

I haven't found your source, trany, but it seems likely that if it did so, the court imposed the trust on finding that the delivery of the deeds was not intended to transfer ownership in the properties, but for some ulterior and possibly illegal purpose.

If so, and considering that the delivery of a deed, and not its recording symbolizes the transfer of ownership as between grantor and grantee, I'm wondering whether the named grantees raised some equitable defenses. For instance, the clean hands doctrine, estoppel in pais and or laches.

In my many years of advocating before probate judges I can't say that I found them to be the most knowledgeable of jurists. Some exceptions, but not many.

Anyway, I enjoy reading your enlightened offerings.

.

 

[tranquility]

Interesting your mentioning of the constructive trust stuff.

I haven't found your source, trany, but it seems likely that if it did so, the court imposed the trust on finding that the delivery of the deeds was not intended to transfer ownership in the properties, but for some ulterior and possibly illegal purpose.

https://forum.freeadvice.com/probate-personal-representatives-114/questions-about-being-personal-representitive-603109.html#post3243979

Hi, My mom has been designated as the Personal Representative for her sibling's estate after winning the estate back in court against her other sibling who claimed the entire estate for himself. The losing sibling has filed an appeal. Can my mom use any of the estate's rental income to respond to the appeal? There is also a property that belongs to the estate, but the deeded owner refuses to give it back to the estate (constructive Trust). The deeded owner is not a party to the appeal. Can estate rental income be used for legal fees to recover the property? Thanks for your time.

 

[EstateQuestion]

https://forum.freeadvice.com/probate-personal-representatives-114/questions-about-being-personal-representitive-603109.html#post3243979

Thanks everyone for your thoughts. I have a better understanding about the death/date being controlling. My understanding is that there were deeds notarized and signed prior to the death, but the new owner's name was left blank. The sibling just had to type in her name and record them. All pretty shady. Thanks again.