Skip to main content

Does my mom need to pay taxes on my grandmothers mobile home if it is willed to her?

Saint Francis, MN |

My mom will be getting my grandmothers home when she passes. The mobile home will be paid off and then my sister will be getting the mobile home from my parents threw a contract of title, at which point she will just be making payments on it up to how much was still owed on the mobile home when it was paid off in full by my mother. The payments would then stop when that amount is reached. So at this point my mother has paid the mobile home off with my grandmothers money, she is wondering will she have to pay taxes on the home when my grandmother does die and it is officially passed to her.

Attorney Answers 3

Posted

Note I am not a MN attorney but I believe MN has neither an inheritance or estate tax (these are collectively referred to as "death taxes" by some). Also, typically the death taxes are paid by the estate, although that can be modified so that the persons(s) inheriting pay the inheritance tax on their share.

Someone who receives an inheritance does not pay personal income taxes on the property they received, as an inheritance is not considered income for federal or state income tax purposes. Therefore I believe the person inheriting here would not have to worry about inheritance/estate tax or income tax. Depending on the type of asset and the length of time the property is held in the estate sometimes there is also an estate income tax generated (the income that the "estate" property produces) but that is also unlikely here.

This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature. Visit Steve Zelinger's website: http://www.stevenzelinger.com/

Mark as helpful

10 lawyers agree

1 comment

Asker

Posted

Thank you very much Mr. Zelinger, I greatly appreciate the information and the quick response.

Posted

This asset will receive a stepped up basis equal to its Fair Market Value at her death. That will become your basis moving forward. When you go to sell the home, your gain will be based on this stepped-up FMV basis.

Christopher Larson
Insight Law

Tax Lawyer
Tax Attorney
Tax Lawyer Bellevue
Tax Lawyer Everett
Tax Lawyer Federal Way WA
Tax Lawyer Bothell WA
Seattle IRS Contact Info
Seattle IRS Tax Problems Help
Bankruptcy Attorney
Estate Planning Attorney
Seattle IRS Appeals
IRS Payment Plan
Washington B&O Tax Audit Lawyer
Washington Sales Tax Audit Lawyer

Mark as helpful

4 lawyers agree

Posted

I may be wrong here but I believe that this questioner is asking about property taxes, not estate taxes. If that is true then your mother will be liable for such property taxes on the mobile home when she gets it from your grandmother. You do need a good tax attorney who is in Minnesota. I happen to be in Eagan, MN.

This answer does not create an attorney-client relationship.

Mark as helpful

7 lawyers agree

Real estate topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics