Q: How do we transfer home ownership from a deceased sister to surviving siblings? Any penalties for taking on this asset?

A: When a person dies, their assets must go through a legal process called probate. This process involves identifying the deceased's assets, paying off debts, and distributing the remaining assets according to the terms of their will. If your sister had a will, then the home goes to the named beneficiaries. If the will does not specifically mention the home, or there is no will, state laws will determine the distribution of her assets. There may be probate fees, capital gains tax, and estate taxes associated with the transfer.

Consult with a probate attorney who can guide you through the specific process in your state, help you understand any potential taxes, and ensure that the transfer is done correctly.

A: To transfer ownership of your deceased sister's home in Indiana, you will need to go through the probate process since she did not leave a will. The court will determine the rightful heirs under Indiana’s intestate succession laws. Typically, if your sister had no spouse or children, her estate would pass to her siblings.

As for the process, you should file for probate in the county where the property is located. The court will appoint an administrator to handle the estate, which includes transferring the title of the house to the surviving siblings. Once the court approves, you can update the deed to reflect the new owners.

Regarding penalties, you won’t face immediate taxes for inheriting the property, but you may encounter capital gains taxes if you decide to sell the home in the future. Any increase in value since the time of inheritance could be subject to taxation. It’s a good idea to review the specifics with a tax professional to understand your obligations.