Q: What should the purchase price be on a new deed for a house that I inherited?
I inherited a house from my mom. She was unmarried and I am the only benificary of her estate. I have gone through probate and am the legal representative of her estate. I want to transfer the ownership of her house to my name. I have drafted a deed but am not sure what I should put as the purchase price. The same concern is relevant with the affidavit I will jave to file with the State of Michigan. Obviously, taxes are a top concern as well as capital gains, etc.
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A: You want the highest stepped up in value you can get to lower your potential capital gains upon you selling it later. However the higher the value, the more property taxes each year. You might start by looking at the tax appraisal value. Comparable sales will probably be higher than what the taxing authorities think it is worth. It is your decision when you execute the deed, where you need a MI attorney to draft it.
A:
Michigan has very specific rules about taxable values in inherited properties that are not something out of state lawyers (or most lay people!) will understand or know about.
Have a MICHIGAN attorney, preferably in the county where the property is located, draft the deed for you, and proceed with his advice about how to both minimize tax now and upon eventual sale (capital gains) to insure this gets done right.
There is no 'one size fits all' situation here. Get real advice from an attorney representing you.
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