Question concerning reverse mortgage

[Sandy53]

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

If someone has a reverse mortgage and has received about $150,000 and passes away but the house is worth about $400,000 and is left to one child( the reason being the deceased wanted the house to remain in the family and he knew that this person would do that ) in the family but contents of the house is to be divided between three remaining children. How much of the house is supposed to be taxed for inheritance purposes ? I hope I worded that right. The lawyer that "advised" this person said that she has to pay all the inheritance tax plus get a mortgage to pay off the reverse mortgage company. It was suggested that she seek another opinion just to make her feel comfortable.
Thanks for any info.

 

[anteater]

How much of the house is supposed to be taxed for inheritance purposes ?

Since the reverse mortgage represents a liability of the decedent, it should qualify as a deduction for inheritance tax purposes.

The lawyer that "advised" this person said that she has to pay all the inheritance tax plus get a mortgage to pay off the reverse mortgage company.

Not certain what you mean by "all the inheritance tax." But the inheritance tax attributable to the value of what she is inheriting is something that she would be expected to pay. And any liability, like the reverse mortgage, attached to the property she is inheriting would normally be her responsibility.

Is the estate comprised only of the house and its contents? While, in theory, all personal property, including household furnishings, is subject to inheritance tax, in practice, many tax return preparers will ignore those items as being of nominal value.

It was suggested that she seek another opinion just to make her feel comfortable.

By all means, she should. It should not cost too much.