ESTATE QUESTION

SANCHOBA

SANCHOBA

TEXAS A&M DAD
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for those in the know.....when my father passed, he left his estate to my sister and my-self. one of the things he left us was his 35' boat, valued at $170,000.00. my sister wasn't interest, so i was willing to take it and give my sister half, which is $85,000.00 (buy her share). well...the estate lawyer explains to me i would have to give her full value. i'm like WTF the boat is HALF mine! this just doesn't make sense to me,am i missing something? so i'm passing on the boat, because it is not a good deal for me, after all i could just go to a dealer and get the same deal. my dad left me HALF of everything:mad: my wife agrees with the attorney, am i just to simple minded to see this?
 
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i think he means as long as not everything is divided... all values will come together and be for the heritates... so in fact you get 1/2 back... minus taxes??? (that's shit.):mad:
RIP , your dad.
 
This is what we did in my family........actually we are still in the process. Everything of value was appraised. All us kids made lists of which items we wanted. The dollar value assigned would then be added up. In the end each kid would recieve the same share, some in cash some in tangible items. Make sense?

If its just you and your sister maybe you can work things out. If you dont want such an expensive boat, then sell it and split the cash. I took my dads car and we appraised it much lower than market value cause then nobody had to bother with selling it. Your dads boat is only worth what you can sell it for not necesarily the appraised value.

patrick
 
The others posters are right its the total estate split in half.

I am in the boat business so if you need help getting an appraisal or selling it let me know.
 
Estates can be quite frustrating for families (more than one beneficiary). :( You do have to split up EVERYTHING that isn't directly bequeathed to YOU in the Will. I have heard horror stories..... :mad: :(

You have to pay the WHOLE amount to the "Estate", to buy the boat (just like you were a 3rd party). Then, because you are 1 of 2 beneficiaries, you would get "1/2 the proceeds" (minus taxes) from the the sale of the boat. Yes, it's confusing..... But, 'ol Uncle Sam (and the lawyer) wants his money, no matter what. :rolleyes: :mad:
 
okay.. maybe i'm not clear enough... we split right down the middle all his cash assets, no problem. lets say for arguments sake,all thats left is the boat. we split that right? if i want to keep the boat i give my sister half which is $85,000.00, right?:dontknow:
 
SANCHOBA said:
okay.. maybe i'm not clear enough... we split right down the middle all his cash assets, no problem. lets say for arguments sake,all thats left is the boat. we split that right? if i want to keep the boat i give my sister half which is $85,000.00, right?:dontknow:
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In actuality, yes.... You're right.

BUT- As far as the paperwork and taxes go, you have to "pay" the WHOLE "asking" price (A price you mutually agree on) to the Estate. Then, you get half of that money (after taxes and attorney fees) back.
 
Black1 said:
In actuality, yes.... You're right.

BUT- As far as the paperwork and taxes go, you have to "pay" the WHOLE "asking" price (A price you mutually agree on) to the Estate. Then, you get half of that money (after taxes and attorney fees) back.
Click to expand...

This is the most "thorough" of the explanations that I've read......

And yes, you will have to pay taxes on whatever you inherit unless the taxes were pre-paid by the benefactor.

Django
 
Is there any reason you can not both go on title untill the estate distribution is finalized, then buy out your sister??? You may have to keep it that way for a prescribed length of time to take advantage of the long term Capital Gains
provisions in the tax codes. Then your sister would not have to pay taxes again after the sale/ buy out.
 
includemeout said:
Is there any reason you can not both go on title untill the estate distribution is finalized, then buy out your sister??? You may have to keep it that way for a prescribed length of time to take advantage of the long term Capital Gains
provisions in the tax codes. Then your sister would not have to pay taxes again after the sale/ buy out.
Click to expand...

GOOD IDEA! :withstupid:
 
yeah, this is a little confusing to me, and somewhat over my head. its just the fact that i should give my sister the total (170,000.00) in order to keep the boat, which in my mind is half mine as soon as my dad passed.:dontknow: :confused:
 
SANCHOBA said:
yeah, this is a little confusing to me, and somewhat over my head. its just the fact that i should give my sister the total (170,000.00) in order to keep the boat, which in my mind is half mine as soon as my dad passed.:dontknow: :confused:
Click to expand...

That is what is wrong.... You're NOT giving the money to your sister.... Your paying the ESTATE. :) Think of your Dad's Estate as it's own entity. Because that is exactly what it is.
 
I think I get it . . .

He pays The Estate 170k, which in turn The Estate pays Him 85k minus taxes/fees/etc-etc?

If that's the case, that's pretty bunk. . . Sounds like a HUGE PITA. . . Would The Estate have to sell first THEN he gets his 85k? I know if it were me, I wouldn't have the 170k to front like that. . .
 
Roz-SRT said:
I think I get it . . .

He pays The Estate 170k, which in turn The Estate pays Him 85k minus taxes/fees/etc-etc?

If that's the case, that's pretty bunk. . . Sounds like a HUGE PITA. . . Would The Estate have to sell first THEN he gets his 85k? I know if it were me, I wouldn't have the 170k to front like that. . .
Click to expand...

Estates operate under specific guidelines established by the deceased and the executor (lawyer/accountants).... These guidelines are not commonly negotiated...

They are what they are.......... (it's called the "Popeye scenario"....not really....j/k)

Django
 
Roz-SRT said:
I think I get it . . .

He pays The Estate 170k, which in turn The Estate pays Him 85k minus taxes/fees/etc-etc?

If that's the case, that's pretty bunk. . . Sounds like a HUGE PITA. . . Would The Estate have to sell first THEN he gets his 85k? I know if it were me, I wouldn't have the 170k to front like that. . .
Click to expand...

You buy the boat just like any other (unless you're independently wealthy)... You get a loan. :dontknow: The loan pays the Estate. ..... It does get VERY complicated. :( :(

Like I said before, I've heard horror stories.... Like "Estates" taking generations to disolve. Hell, some lawyers have made careers of "managing" estates.

Unfortunately, families get so tired of dealing with it, they just sell EVERYTHING off and split the money. :dontknow: :( That's what we had to do with my Grandpa's Estate..... (that's why I know a little about this stuff.)
 
Sink the boat and get the insurance $$$

Then sell it to Jimi. He's looking for a Dingy...;)
 
Actually there are no estate taxes if the value is under 1 mil. All life insurance, 401k's etc.....that are contractual and have you and your sister listed as a beneficary do NOT pass through the estate because they are under contract. They would not count in the total $ value of the estate.

If you get along with your sister and any other beneficiaries then your lawyer fees will be minimal..............but similar to a divorse, if parties arent getting along.....it can get costly.

With my family, all 5 of us get along very well and have had minimal problems. Our lawyers fee was very minimal.

patrick
 
shade said:
My wifes estate horror story took 3 years to finalize when her dad passed.

Its a beatch
Click to expand...
Working on 5 years with my incompetent little brother as the trustee of the folks family trust :dontknow: :mad: :mad: He is holed up in the estate like a squatter coming up with more excuses than Carter has pills for not distributing the estate. What a JERKWAD ............
 
includemeout said:
Working on 5 years with my incompetent little brother as the trustee of the folks family trust :dontknow: :mad: :mad: He is holed up in the estate like a squatter coming up with more excuses than Carter has pills for not distributing the estate. What a JERKWAD ............
Click to expand...


That sucks! Money really changes some people for the worse.



patrick
 
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