Inheritance Tax

[kitnlou]

I posted this in the legal Wills forum but was told I should post it in the tax forum so here it is .

What is the name of your state? PA

My sister and her friend in NJ lived in a house together for over 23 years. In their wills they both left each other a "life estate" where whoever survived could choose to live in the house until she dies or sells the house. Then my sister's share goes to me and her friend's share goes to her children.

I am told that I have to pay Inheritance taxes on half of the house's market value now? Is that true? How can I pay taxes on a house that I didn't get yet? I certainly can't raise that kind of money from her Estate account or my account. I've been out of work since December 2005.

I hired two lawyers in NJ, but they are too busy to help me out because her Estate is so small. I've called several times since February 14th, and still have not received a call back. I called another lawyer, but his fee was outrageous!

Someone help me please!

Kitnlou

[shortbus]

Not true. There is no taxable transfer until the last tenant dies, at which point title is transferred to you & the friend's children. If the estate is small, it's probably not going to trigger any federal estate tax liability.