Do I have to pay taxes on a home I Inherited?
Tuesday, March 30th, 2010I recently came across some startling information that I have inherited a home form my grandfather. He passed away in 1999 and, in his will. he left this home to myself. However it was stipulated in the will that his live in girfriend was granted a life estate by him for the property, in which she was able to stay in the property until she couldnt for 30 days. All other assets were left to her in the will explicitly. Apparently she couldnt pay the inheritance taxes on the property and the deed was officially transferrred over to me in 2003 and the attorney got the estate closed…..which I never knew any of this was going on. So now, in January of 2009 all of this came to light when the girlfriend was put in a nursing home and her POA was trying to sell the home and found out it belonged to me. I spoke to a lawyer who said the property was mine, and being a class A transferee, I wouldnt have to pay taxes on anything under 100,000. So now I have fixed the home up and put the home on the market. I received a buyer and am waiting to close on the property. There was a small mortgage left on the property which i have been paying for. The girlfriend has since passes away and now I am confused as if i have to pay any taxes on the sale of the home? Also why i was never informed of the transfer of the property to myself and why the estate was closed w/out my knowing any of it? I have never lived in the home and I own a home of my own…I was planning to use part of the monies from the sale of the home to fix up my primary residence. I currently live in indiana and the inherited property is in the same state. any information would be greatly appreciated!
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