My parents own a lot of acreage. What is the most beneficial way, tax wise, for them to leave the land to us?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
My parents own a lot of acreage. What is the most beneficial way, tax wise, for them to leave the land to us?
If possible we would like to keep it in the family once my parents pass. However I am sure the inheritance taxes would be prohibitive, not to mention the property taxes. My sister mentioned putting the land in a trust, can you address the pros and cons of that approach? How would it be handled if some siblings wanted to sell and others wanted to keep it in the family?
Asked on June 6, 2009 under Estate Planning, Texas
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
We cannot simply answer this question herein. What you are seeking is legal advice and we cannot provide exact legal advice to you based on a mere question herein, unfortunately.
How many siblings? Are your parents currently ill? Do they have any current estate plans? Other property? Every state is different in terms of whether it has estate tax or property tax issues. More often than that, a trust helps protect assets from probate, as opposed to a will or no estate plan.
In terms of the pros and cons, etc., you need to sit down with a lawyer in the state in which the property is, with your sibling(s) and your parents and go over every detail (bank accounts, other land, homes, cars, personal items, etc). Why? Because up to a certain point, items can be exempt from taxation -- inheritance tax. Also, every year, your parents can give you and your sibling(s) cash up to a certain amount with no gift tax consequences.
So, you see, it is actually more complicated than what first meets the eye. Try www.attorneypages.com and consult with an estate planning lawyer in Texas. Check his or her record at the Texas State Bar.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.