San Carlos, CA Estate Planning Law Firms & Lawyers

Generally, for federal tax purposes, a beneficiary of a bequest (which is the case where property is transferred through a revocable trust at the death of the grantor) receives the property with a date of death cost basis. An alternate valuation date can be applied, which would be the equal to the value of the property 6 months from the date of death of the grantor, at the behest of the executor/trustee. In your case you will be able to use a cost basis equal to the value of the property on your mother's date of death, or the alternate valuation date, 6 months later. I strongly suggest that you consult with an attorney or CPA to make sure that there are no other facts that may come into play in your case. You have not provided ALL the facts, and therefore you should not rely on this analysis. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this document is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in this document.

If the property is held in the names of your mother and dad or either of them the property must be probated. You don't need a will to probate real property. You should consult with an attorney to determine your rights.

In answering your question, First you and your brother could determine the rental value of the home and charge you one half of the monthly rental amount to pay him, as you are living in the home, until the two of you are ready to sell the home. Second You may also want to consider obtaining a loan against the property and buy his interest out; if you have the means of paying a monthly payment back to a lender this may be the way to go in this down real estate market. You would seek financing from a credit union or banking institution; however this may not be appropriate for you. Then the first alternative may be the better one, and you may want to go that route until sale of the home; your brother is certainly entitled to his share of the value. The third and last alternative would to be buy the brother's share with him carrying the mortgage/note secured by a deed of trust issued by you to him with a(30yr) 360 month amortization for monthly payments schedule, with the note payoff due in full at some future date or sooner, such as five years down the road.