|
|
|
Member
 
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
|
|
our office has an audit with an estate that owns several parcels of real estate, all in a living trust.
the property was originally acquired by the decedent and his sister in joint tenancy. the property was transferred before death to the decedent's living trust.
my understanding is that the trasfer severs the joint tenancy, as though it never existed.
the auditor is arguing that the joint tenancy taint follows the property so that we have to prove contribution to avoid 100% inclusion in the estate...
is the taint alive and well, or dead with the decedent??
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) 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 matters addressed herein. |
|
|
|
|
Power Member
Group: Forum Members
Last Login: 1/6/2010 6:00:00 PM
Posts: 83,
Visits: 123
|
|
Mike, please tell us more about what both deeds said. On the first deed, is there any modifying language on percentage interests.? On the second deed, did both sign it?
John Jacobson
|
|
|
|
|
|
|
Since the consideration furnished rule of Sect 2040(a) only applies to joint interests with rights of survivorship, it would seem that the language on the deeds would be crucial in deciding Mike's question.
Dan S
|
|
|
|
|
|
|
(woops- looks like i might have replied without loggin in... this post is from allmon)
the jt deeds do not have percentage interests- the contribution was equal, but impossible to prove... both parties are deceased.
new development- i insisted that, as far as i knew, it was impossible for the taint to survive the title change into the trust and asked for a meeting with her manager unless she could provide me with convincing evidence that her position was correct. her tune seems to be changing- she has asked to see the deeds as of date of death again (she did not indicate that she would change her mind, but her request leads me to think that this might be the case) before she responds to my request.
|
|
|
|
|
|
|
| Who died first, your decedent or his sister?
|
|
|
|
|
Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
|
|
Anonymous (10/17/2006)
Who died first, your decedent or his sister?
pretty sure the sister did- but very close together.
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) 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 matters addressed herein. |
|
|
|
|
|
|
| If the sister died first and there were legally no rights of survivorship, seems like the sister's heirs would be seeking her share of the property. What position has been taken with the county assessor as to ownership? Has a title company got involved with this thing yet?
|
|
|
|
|
Member
Group: Forum Members
Last Login: 12/1/2009 12:47:02 PM
Posts: 44,
Visits: 58
|
|
three years into litigation and the courts seem to be holding that the properties were properly in the two trusts (the brother had a living trust as did the sister). ownership percentages have not been concluded on all properties.
the properties were originally in joint tenancy and then conveyed to the two trusts.
an issue that is being hinted at is that there could have been unreported gifts at the termination of the joint tenancy. i think that the auditor is not anxious to push this because this will obviously delay this audit. it appears that we might be able to satisfy her by showing the deeds in the j.t. and then in the trusts (my guess at this point- other issues are preventing me from pushing this one yet).
IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) 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 matters addressed herein. |
|
|
|