Who pays the tax bill?

[flowergirl45]

Hello all. A bit of backstory: my father passed away last December. I am visiting with my stepmother for a few days for the first time since the funeral (we live 13 hours apart). She and I have always gotten along very well. She and dad married 15 years ago and bought a home together about that same time. They did a prenup which stated that if one spouse predeceased the other, the surviving spouse could remain in the house. When the house sold, the proceeds would be split equally between the surviving spouse and the deceased spouse's children. When dad passed, I made sure to let my stepmother know that I didn't mind if she wanted to remain in the house. My two sisters were in agreement. At the time, she replied that she wasn't sure what she wanted to do- which I completely understand, as it was a very stressful time and not really a good time to make any decisions without thinking them through.

She has decided to stay in the house. She is 74, but is very healthy and still works as a physical therapist (because she wants to, not needs to financially), and is active in her church. She travels a lot and I am very glad that she is enjoying life since she spent the last few years taking care of dad. She deserves to have fun. So, in the same conversation where she told me she wants to stay in the house, she showed me the house and land tax bill. It is a little over $3000. She said that she would pay half ($1500) and we three sisters could send her checks totaling the other half. This would be an annual expense, not a one time thing. And of course, taxes increase over time.

I don't know what to think. Is this a fair request? On one hand, it is still half 'dad's/his daughters' house. On the other hand, she is the only one living here. The prenup does not go into this level of detail regarding the house. She is so healthy, she could remain in the home another 20 years. I thought I would ask the DIS community for thoughts. Thank you in advance.

 

[TwoMisfits]

Hello all. A bit of backstory: my father passed away last December. I am visiting with my stepmother for a few days for the first time since the funeral (we live 13 hours apart). She and I have always gotten along very well. She and dad married 15 years ago and bought a home together about that same time. They did a prenup which stated that if one spouse predeceased the other, the surviving spouse could remain in the house. When the house sold, the proceeds would be split equally between the surviving spouse and the deceased spouse's children. When dad passed, I made sure to let my stepmother know that I didn't mind if she wanted to remain in the house. My two sisters were in agreement. At the time, she replied that she wasn't sure what she wanted to do- which I completely understand, as it was a very stressful time and not really a good time to make any decisions without thinking them through.

She has decided to stay in the house. She is 74, but is very healthy and still works as a physical therapist (because she wants to, not needs to financially), and is active in her church. She travels a lot and I am very glad that she is enjoying life since she spent the last few years taking care of dad. She deserves to have fun. So, in the same conversation where she told me she wants to stay in the house, she showed me the house and land tax bill. It is a little over $3000. She said that she would pay half ($1500) and we three sisters could send her checks totaling the other half. This would be an annual expense, not a one time thing. And of course, taxes increase over time.

I don't know what to think. Is this a fair request? On one hand, it is still half 'dad's/his daughters' house. On the other hand, she is the only one living here. The prenup does not go into this level of detail regarding the house. She is so healthy, she could remain in the home another 20 years. I thought I would ask the DIS community for thoughts. Thank you in advance.

Whose name is now on the house deed? Or is the house in a trust? You need more details before anyone can probably answer with any type of helpful answer (and knowing the state is also pretty darn important)...

 

[havaneselover]

I'm so sorry for your loss.

I'm not sure legally but it doesn't seem reasonable to me and I would certainly not ask that if I were her. It seems rather petty.

 

[verleniahall]

It wold all be on her - i would talk to a lawyer to get 100% facts

 

[kymom99]

I would tell her to buy you all out. Maybe give her a period of time to do so. Because there is also the issue of upkeep and insurance.

 

[Alesia]

You need to talk to a lawyer. People here really can't help you

 

[Judique]

Somebody has to pay the bill. That's clear.

And you need to obtain legal advice.

Looks like the ball is in her court as to when the house is put on the market based on what you say in your post.

If she wants to stay there I would think she should pay all expenses. Her 'out' is to put it up for sale.

If she doesn't pay, you may be forced to pay to keep the property from the tax guy.

I'll be interested in seeing how this problem plays out!

 

[supersnoop]

Did they split the tax bill when dad was alive? Is any money left in the estate? Since it was dad's wish that she could stay in the house, I'd expect dad's estate to pay his half of the taxes.

I think it's reasonable, albeit uncouth, for her to ask to split the bill. If all of dad's estate has been disbursed, I'd expect the recipients to cover the bill.

 

[pearlieq]

Nope, nope, nope! I guess you'll need to get a lawyer if it comes to that, but from a fairness and common-sense perspective, heck no. She's living there and has the exclusive use of the house. She pays the taxes and all the upkeep while she lives there. You're not responsible for paying her living costs because your dad left you his share of the equity in the house.

 

[CalDisneyMomof2]

I don't believe it is your responsibility TBH. Then there's the issue of tax time - I will assume she will get to claim the tax bill and pocket any refund she receives?

Do you or any of your siblings feel comfortable enough to express your feelings towards her before bringing in a lawyer? If not, I agree with others to seek a professional's help ASAP.

 

[Hikergirl]

You said they bought a home together so does that mean her name is on the deed/mortgage/tax roll? If yes then I would say that she is responsible for 100% of the taxes at this point.
If you and your siblings are only getting half of the proceeds of the house after it sells and are not named on any legal documents stating ownership of the house then why would any of you be responsible for it?

 

[StitchesGr8Fan]

The responsibility to pay the taxes belongs to the owner. If she is currently the only living person on the title then she is the only person responsible for the taxes.

 

[ICF]

Legally I have no idea....

From a common sense perspective -- why would you and your sisters pay $1500+ a year for perhaps 15 or more years.....so that your step mom can live in that house? It just makes no sense to me. If she wants to stay in the house....she should foot the bill.

What's next -- are you paying half the property insurance....utilities....phone...food....tv...etc, all because your father used to pay half of the bills?

 

[gottalovepluto]

You don't pay those taxes! Your father did not pass along bills to you and your siblings, he passed along proceeds from an asset. Your father did not intend for you to support her, so don't start going down that slippery road. Honestly, it was wrong of her to even ask and put you in this position, do NOT feel bad telling her no. She wants to live in it, she can pay the taxes. As soon as she is 100% moved out so you can sell the house, then you start splitting expenses -probably through escrow actually but you need to research it.

Also you need to consult a lawyer- this sounds like a potential MESS down the road. Wills vs Prenups vs State & Federal laws on what happens to assets upon a spouse's death... who has the deed to the property? If it's in both her name, and all you kids then the expenses and responsibility on the property get a lot messier. Yeah, the more I'm thinking this thru the more I see you NEED to get a lawyer involved to find out your legal obligations AND risks. You kids should split the cost of the lawyer because if the money is to be distributed to all of you, you have the same risks.

 

[bababear_50]

Hi Hon
My heart felt best wishes go to you and your sisters at this time. As a side note I recently lost my brother (March) and the Tax and legal implications can at times be overwhelming. It does get better with time and talking things over with family and friends.

I am not a lawyer but here are my thoughts,,
Your Dad signed a special pre nup allowing your stepmother the right to live in her home until her death UNLESS she chooses to liquidate the home and at such time you and your sisters would then inherit your Dad's shares of the home.

At present you and your sisters have NOT inherited your fathers shares in the home and therefor you are not legally responsible for contributing to the maintenance ,upkeep,repair Mtg and bills of the home. Inheriting something in the future does not make you responsible for maintaining the inheritance now. I would seek the advise of a Lawyer as you will want reassurance that your Stepmother will use good sense to not strip the value of the home (there are many examples of this : one is a Home Equity Line Of Credit).

As a side note I have to wait for my Stepmother (evil one) to pass in order to inherit from my Dad's estate--my Dad passed over 9 years ago. I am thankful there was stipulation that she (Evil S.M.) can not touch the principal and can only access the interest.

Go with your gut instinct and heart ,,if it doesn't seem right you are probably right it isn't.
Best wishes as you go through this very difficult time.

Hugs Mel

 

[kymom99]

Hi Hon
My heart felt best wishes go to you and your sisters at this time. As a side note I recently lost my brother and the Tax and legal implications can at times be overwhelming. It does get better with time and talking things over with family and friends.

I am not a lawyer but here are my thoughts,,
Your Dad signed a special pre nup allowing your stepmother the right to live in her home until her death UNLESS she chooses to liquidate the home and at such time you and your sisters would then inherit your Dad's shares of the home.

At present you and your sisters have NOT inherited your fathers shares in the home and therefor you are not legally responsible for contributing to the maintenance ,upkeep,repair Mtg and bills of the home. Inheriting something in the future does not make you responsible for maintaining the inheritance now. I would seek the advise of a Lawyer as you will want reassurance that your Stepmother will use good sense to not strip the value of the home (there are many examples of this : one is a Home Equity Line Of Credit).

As a side note I have to wait for my Stepmother (evil one) to pass in order to inherit from my Dad's estate--my Dad passed over 9 years ago. I am thankful there was stipulation that she (Evil S.M.) can not touch the principal and can only access the interest.

Go with your gut instinct and heart ,,if it doesn't seem right you are probably right it isn't.
Best wishes as you go through this very difficult time.

Hugs Mel

It did occur to me that she could somehow devalue the house. Like if she lets things go without repairing them. I did not think about the possibility of an equity line! Yikes!

I would call a lawyer and see what your options are

 

[Kingdome8]

Would need to talk to a lawyer there and have them see prenup. I see her point though. She will have to pay all taxes and upkeep of house and then give you half when she sells. So if she keeps house perfect You win big time. Is there a mortgage on house now? Does she need your permission if she wants to take equity out of house? THats all stuff that would need to be known first. You could pay half tax bill for 15 years and when she sells there may be no equity.

I agree I would ask her if she wants to buy you out. Of course don't know if has a mortgage now and if she can afford that.

 

[Kingdome8]

Legally I have no idea....

From a common sense perspective -- why would you and your sisters pay $1500+ a year for perhaps 15 or more years.....so that your step mom can live in that house? It just makes no sense to me. If she wants to stay in the house....she should foot the bill.

What's next -- are you paying half the property insurance....utilities....phone...food....tv...etc, all because your father used to pay half of the bills?

Then should she have house appraised now and that would be the future value of house that they use to split proceeds.

So if house now 100k. She gets 50k in 10-15 years even if house goes to 200k?

I can see the step moms point of view kinda here as well

 

[bababear_50]

I was wondering if your Dad left you a WILL? Usually a copy of the WILL is distributed to all those who inherited from an Estate.I know in my Country(Canada) and Province(Ontario) this is a legal document that has to be passed along in a timely manner--I believe 1-3 months.
The WILL may give you guidance as to your Dad's wishes.
Regards
Mel

 

[tvguy]

I am not a lawyer.
But it sure seems to me that it is her house until she sells it, or until she dies. THEN the pre-nup kicks in. Her house, her taxes.