Estate Quick Sale - Estate Sale

[AshAllb]

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?

 

[OHRoadwarrior]

That is called theft of an estate. The only question is one of you the court appointed executor committing the theft or are you relatives doing so? Are there any other beneficiaries?

 

[STEPHAN]

If we were to sell the property to another individual for $10, when the property is worth $160,000.

You will never allowed to do this by the court.

 

[LdiJ]

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?

The official executor or administrator of the estate (possibly you and your mother together) would be breeching their fiduciary responsibility to the estate and could get into a great deal of trouble for doing so. Your only possible motives for doing so would be to either defraud other heirs or defraud the estate creditors. Either would get you into serious trouble.

 

[Zigner]

The official executor or administrator of the estate (possibly you and your mother together) would be breeching their fiduciary responsibility to the estate and could get into a great deal of trouble for doing so. Your only possible motives for doing so would be to either defraud other heirs or defraud the estate creditors. Either would get you into serious trouble.

A third possibility is that they are trying to cheat the tax man. Still just as illegal.

 

[AshAllb]

A third possibility is that they are trying to cheat the tax man. Still just as illegal.

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.

 

[LdiJ]

A third possibility is that they are trying to cheat the tax man. Still just as illegal.

There is really nothing to cheat the tax man on. The house gets a stepped up basis to fair market value and therefore there would be virtually no capital gain.

 

[LdiJ]

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.

Then please explain why you want to do this, because it makes absolutely no sense and I cannot see how it could possibly benefit anyone. If the person who brought up the idea is the person who you would sell it to for 10.00, then you should question their motives...because once you sell it to them they do NOT have to sell it back.

 

[Zigner]

There is really nothing to cheat the tax man on. The house gets a stepped up basis to fair market value and therefore there would be virtually no capital gain.

I didn't say that the plan made sense

 

[STEPHAN]

There is really nothing to cheat the tax man on.

Taxes for the transaction?

 

[latigo]

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?

Try pedaling your phony baloney childish get rich quick scheme elsewhere. Or better still get off of your mother's computer and clean your room. Not everyone in here just fell off of a friggin' turnip truck!

People appointed to administer a decedent's estate do not liken their authority as "being in charge"!

 

[LdiJ]

Taxes for the transaction?

I am not familiar with IL having any particular taxes on real estate sales.

 

[I'mTheFather]

I am not familiar with IL having any particular taxes on real estate sales.

http://tax.illinois.gov/businesses/taxinformation/excise/realestate.htm

Why would you be familiar with IL transfer taxes? Try google if you're not familiar, but wish to post.

 

[LdiJ]

http://tax.illinois.gov/businesses/taxinformation/excise/realestate.htm

Why would you be familiar with IL transfer taxes? Try google if you're not familiar, but wish to post.

That is a transfer tax that is tiny. Its 25 cents per 500.00 of value. It would be 2.50 on 5000, 25.00 on 50,000, and 250.00 on 500,000. That isn't going to motivate someone to play games like the OP is describing. Those kinds of tiny taxes abound. I am talking about any type of tax that would actually have an impact.

 

[I'mTheFather]

That is a transfer tax that is tiny. Its 25 cents per 500.00 of value. It would be 2.50 on 5000, 25.00 on 50,000, and 250.00 on 500,000. That isn't going to motivate someone to play games like the OP is describing. Those kinds of tiny taxes abound. I am talking about any type of tax that would actually have an impact.

From that link:

Local Taxes
Counties may impose a tax of 25 cents per $500 of value on real estate transactions. Home rule municipalities may also impose an additional real estate transfer tax.

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.