Inheritance tax on joint home with parent?

[LisleMixer]

What is the name of your state (only U.S. law)? California
My wife and I are thinking of selling our 3 BR house and buying a 4 BR house jointly with her aging mother, who would sell her condo and use the proceeds to contribute to the purchase. One reason for doing this is to allow her mother to will us her portion of the house upon her demise, but we want to know if that would be subject to gift or inheritance tax. Any advice would be appreciated!

 

[TrustUser]

just about everything is "subject" to inheritance taxes. that is not the same as having to "pay" inheritance taxes.

some states have their special rules to add on to the fed rules.

and the fed rules change all the time.

but there is a federal exclusion amount, such that only an estate over a certain dollar amount is levied an inheritance tax.

i think the amount had gone up to 3.5 million, no tax at all in 2010, and then back to 1 million.

but no one seems to think that they will keep it free for 2010.

unless she owns a lot more, i doubt that a small percentage of one house is gonna cost you anything.

 

[LisleMixer]

Thanks for the advice!

Okay, since her estate will be under a million, I think we'll have no problem. Thanks!