Estate Quick Sale - Estate Sale

[LdiJ]

From that link:


That's on top of the 50 cents/$500 that the state imposes. Municipalities range from no tax to $5/$500, which is easily found through a google search. Perhaps a couple thousand isn't much, but it certainly may deter some from the straight and narrow.

Your link didn't mention 50 cents/$500 imposed by the state.

Eh...I cannot see even a couple of thousand motivating someone to take the kind of risk that the OP's scenario would impose. Seriously? You sell a 200k property to someone for 10 bucks hoping that they will sell it back to you for 10 bucks just to avoid a couple of thousand in transfer taxes? Who would be that stupid?

On top of that, there is an easier away around that...its shortsighted in the long term, but it still avoids the transfer tax, and that is simply not changing the deed.

Either the OP will come back and explain the family motivation or the OP won't. Until the OP does, I think that the discussion is moot.

 

[Just Blue]

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

My mother and I are in charge of my grandfathers and grandmothers estate, and we had a legality question regarding selling the property. If we were to sell the property to another individual for $10, when the property is worth $160,000. Can that individual turn around and resell the property back to us for $10, so the property would be in our names? Are there any tax laws we need to be aware of?

Fraud. You and your mother will likely be arrested for it. Hire an Estate attorney to assist you both.

 

[I'mTheFather]

Your link didn't mention 50 cents/$500 imposed by the state.

Yes, I found that through another link, one I found through google.

Eh...I cannot see even a couple of thousand motivating someone to take the kind of risk that the OP's scenario would impose. Seriously? You sell a 200k property to someone for 10 bucks hoping that they will sell it back to you for 10 bucks just to avoid a couple of thousand in transfer taxes? Who would be that stupid?

I don't believe the OP considered it risky. I don't believe she realized it would be illegal.

On top of that, there is an easier away around that...its shortsighted in the long term, but it still avoids the transfer tax, and that is simply not changing the deed.

Either the OP will come back and explain the family motivation or the OP won't. Until the OP does, I think that the discussion is moot.

This discussion has little to do with the OP's question. It is a result of your reply to Stephan regarding IL taxes. I felt it was important to correct any misconceptions, both for the OP and for anyone else who stumbles upon the thread.

 

[justalayman]

We are not trying to defraud anyone. All of the benficieries are wanting to do this sell. There is no attempt to escape taxes or take money from anyone.

so, can you explain how you came up with this plan and why you think it does what you want to do?


The issue I would be concerned with is if the decedent owed anything, this is committing fraud against the creditors of the estate. If the estate has $160k in it and there are debts owed, then the asset needs to be liquidated and the debts paid.

Otherwise, your scheme makes no sense. If all the heirs want you to have the property, then the estate can give it to you. It does not have to pass through an outside party, that has no obligation to resell it to you if they so choose.