Inherited Home Guide Book Preview

of attorney needed because each sibling will have different values— both financial and emotional—in mind. It is the executor who makes the final determination. Where the executor is also a sibling, those determinations can lead to arguments and a breakdown in family relations, so be cautious! For tax considerations, the tax basis of the inheritance is the value of the home on the day the owner of the willed property died. The difference between the home’s value and the amount received after the sale of the property is the gain on which taxes are owed. Where more than one sibling inherits the home, the gain is divided equally and each heir will claim their share of both money and taxes. If the property sells for less than its assessed value, then there will be no gain to be reported. • • •