Life Estate
A friend of mine holds title to his parents home (they have owned for 40 years and put in his name in 1992) with a life estate for his parents. His parents are now living with him and they want the house sold. The question is this...are the proceeds split 50/50 wit their son? Do they all pay capital gains? Can the parents use their one time exemption? They have lived there up until 1 month ago and the son has not lived there since 1995 or so.
Re: Life Estate
The parents are entitled to the Exemption. However the split is allocated based on the age of the parents now according to a specific table based on a 110 year life expectancy. The son will have to pay a capital gain on his portion of the property.
I would speak to an attorney before placing the home on the market. Please feel free to contact me if you have more questions.
Re: Life Estate
The parents are entitled to the Exemption. However the split is allocated based on the age of the parents now according to a specific table based on a 110 year life expectancy. The son will have to pay a capital gain on his portion of the property.
I would speak to an attorney before placing the home on the market. Please feel free to contact me if you have more questions.
