My wife and I need legal help. My mother is leaving us a property.
After I did some research and calculations, it was determined that Federal and State "Estate Taxes" are due in 6-9 months.
These taxes can be large if she leaves it in a WILL. Plus, there is the hassle of Probate Court. The other option is an Irrevocable trust.
PLAN - WILL #1
We want to sell the property and put the funds in a 30 year Federal and State tax free California Municipal bond at 5% yearly yeild. We want to also apply for a estate tax deferment to enable us to pay the taxes over a number of years. At 2% government interest rate that would give us a return of 3% on the funds each year. The government can place a lien on the bonds.
PLAN WILL #2
If the Probate Court or government doesn't allow us to implement the first plan, we want to use a 1031 Exchange (Starker Trust), which allows us to sell the property in 6 months and buy another property at equal value without paying gains tax. We will then use the income from the new building to pay the estate taxes. We would also apply for a deferment on the estate taxes to pay them off in yearly installments. The government can place a lien on the new property for the estate taxes.
Plan IRREVOCABLE TRUST #3
The property is sold to the TRUST. It avoidS probate and estate taxes. A structured payment is established in installments to my mother. My wife and I are the beneficiaries. The income from the property pays the expenses and the balance that is to go to us is paid to my mother as part of the structured payment for the purchase. Upon my mother's passing, the note terminates. This avoids a large gains tax payment. We sell the property via a 1031 exchange or simply sell and buy the bonds as described above. We use the interest payments to pay the gainst tax of the second sale.
We have the following questions if anyone can answer them:
(1) Will the Probate Court allow us to sell the property and buy the bonds?
(2) Will the government agree to put an estate tax lien on the bonds instead of the property?
(3) Will the government require us to pay the estate taxes after 6-9 months if they know we can sell the house and pay them in cash?
(4) Will the Probate court and the government allow us to sell the house and buy a new one where the government can place an estate tax lien on it?
(5) Is the a better solution that will NOT cause us to lose so much money to the government all at once?
(6) Does anyone know of a good and honest Probate attorney in New York City?
After I did some research and calculations, it was determined that Federal and State "Estate Taxes" are due in 6-9 months.
These taxes can be large if she leaves it in a WILL. Plus, there is the hassle of Probate Court. The other option is an Irrevocable trust.
PLAN - WILL #1
We want to sell the property and put the funds in a 30 year Federal and State tax free California Municipal bond at 5% yearly yeild. We want to also apply for a estate tax deferment to enable us to pay the taxes over a number of years. At 2% government interest rate that would give us a return of 3% on the funds each year. The government can place a lien on the bonds.
PLAN WILL #2
If the Probate Court or government doesn't allow us to implement the first plan, we want to use a 1031 Exchange (Starker Trust), which allows us to sell the property in 6 months and buy another property at equal value without paying gains tax. We will then use the income from the new building to pay the estate taxes. We would also apply for a deferment on the estate taxes to pay them off in yearly installments. The government can place a lien on the new property for the estate taxes.
Plan IRREVOCABLE TRUST #3
The property is sold to the TRUST. It avoidS probate and estate taxes. A structured payment is established in installments to my mother. My wife and I are the beneficiaries. The income from the property pays the expenses and the balance that is to go to us is paid to my mother as part of the structured payment for the purchase. Upon my mother's passing, the note terminates. This avoids a large gains tax payment. We sell the property via a 1031 exchange or simply sell and buy the bonds as described above. We use the interest payments to pay the gainst tax of the second sale.
We have the following questions if anyone can answer them:
(1) Will the Probate Court allow us to sell the property and buy the bonds?
(2) Will the government agree to put an estate tax lien on the bonds instead of the property?
(3) Will the government require us to pay the estate taxes after 6-9 months if they know we can sell the house and pay them in cash?
(4) Will the Probate court and the government allow us to sell the house and buy a new one where the government can place an estate tax lien on it?
(5) Is the a better solution that will NOT cause us to lose so much money to the government all at once?
(6) Does anyone know of a good and honest Probate attorney in New York City?
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