Simple Will Questions

[Dnichols]

What is the name of your state? Indiana


My mother(widowed) is soon to die from ovarian cancer. There are three of us kids and her will states that we are to divide everything equally.

-Has a small insurance policy to cover burial exp's : $10,000

-Has savings account : $50,000

-Has house paid off : Approx. mrkt value $60,000

My questions are these :
1. What should we do with the house? Have her will it to one child, and let that child sell it and split procedes OR just keep it part of her "estate?"

2. If she were to die tomorrow, where do we start in carrying out her will? (Oldest sibling is named Trustee at this time)

3. Does her estate have to go through Probate ? (no idea what this entails)

4. Are there any smart moves for us to make with our mom while she is living, to avoid paying taxes on what she has left once we receive it?


Thank you. I am the youngest(23 yrs old) and none of us have any experience going through this before. Devon

 

[divgradcurl]

1. What should we do with the house? Have her will it to one child, and let that child sell it and split procedes OR just keep it part of her "estate?"

Well, if she wills it to one child, then that child owns the house. Period. If that child decided not to sell the house, or to sell it and keep all of the money, there is nothing the other kids could do about it. It's best to will it to everyone equally, then figuring out what to do with it is easier, and each heir has an ownership interest in the house.

2. If she were to die tomorrow, where do we start in carrying out her will? (Oldest sibling is named Trustee at this time)

Take the will down to the courthouse and open a probate action, or hire a lawyer to do it for you.

3. Does her estate have to go through Probate ? (no idea what this entails)

Yes. Any time real property is involved, it will need to go through probate. Your local courthouse likely has a website with information explaining the probate process -- that's the first place to go to get information.

4. Are there any smart moves for us to make with our mom while she is living, to avoid paying taxes on what she has left once we receive it?

The value of the estate as you have described it is well below the statutory exemption, so you won't pay any probate taxes on the estate. After you pay off any estate creditors, the rest of the value of the estate will be distributed to the heirs, who will not pay taxes themselves.

You will owe taxes on the sale of the house, but only if you wait until it appreciates before selling it. If you sell it shortly after receiving it, you will not pay taxes on the proceeds from the house.