Life Estates
Mother in law created a life estate and signed over house to son and daughter. Under terms of life estate, she was allowed to stay in house for rest of life as if she still owned the home. She could not physically remain in the house last year, so it was sold.
Question is about tax liability for my husband and sister, since the 1099's for sale of house went to them.
Anybody been through this? Thanks.
If house was gift to them, no tax would be due, but they should check with their tax acct. to make sure what they should report and pay.
If they did purchase, then resold for a profit, then they'd owe some tax.