Who pays the tax bill?

[flowergirl45]

I did not read all of the other replies, but wondering if Dad had other assets that have been dispersed to you and your siblings? Life insurance? IRAs, etc? Savings or checking accounts? Taking this into consideration may make it easier to determine if you and your sibs should help pay the taxes.

If you have been the recipients of other assets, then maybe you should help pay the taxes. If there were no other assets or if Step Mother got them, then I would think she should pay all of the taxes.

Maddie, my sister reminded me that our Stepmother is now receiving Dad's pension (monthly stipend for her lifetime). Otherwise, his assets were divided among his 3 daughters.

 

[flowergirl45]

For me, anyway, the really important message in all this is, make sure your estate planning doesn't leave a mess like this behind for your heirs. Think it through, and have an estate planner look it over to avoid this kind of issue.
My FIL passed away 13 years ago. Per his will, everything goes to my wife's stepmother. Her will says after she passes, everything will be divided between DW and her 2 step sisters. Everything was very specifically spelled out in both their wills. And with "blended" families, that is really really important.
Only issue we had was with a strange law in Texas regarding cars. No matter what a will says, Texas law says when someone dies, an adult child has ownership rights to cars over a step-parent. My wife had to fill out a special form, and have it notarized releasing any claim to the car before my wife's step-mother could put the car in her name only. Only in Texas.

Agreed. I know they hired both an estate planner and an attorney for the prenup, will, and POA, so I'm not sure how things devolved into such a mess.

 

[SirDuff]

For me, anyway, the really important message in all this is, make sure your estate planning doesn't leave a mess like this behind for your heirs. Think it through, and have an estate planner look it over to avoid this kind of issue.
My FIL passed away 13 years ago. Per his will, everything goes to my wife's stepmother. Her will says after she passes, everything will be divided between DW and her 2 step sisters. Everything was very specifically spelled out in both their wills. And with "blended" families, that is really really important.
Only issue we had was with a strange law in Texas regarding cars. No matter what a will says, Texas law says when someone dies, an adult child has ownership rights to cars over a step-parent. My wife had to fill out a special form, and have it notarized releasing any claim to the car before my wife's step-mother could put the car in her name only. Only in Texas.

What's to stop her from changing her will and leaving your wife out? I don't see how that makes sure that there isn't a mess left behind at all.

 

[MomToOne]

I know in Louisiana, community property is usually covered by "usufruct", which is pretty similar to what you have going on here from the sounds of things. In that situation, the person who has use of the house is responsible for annual taxes and "normal and necessary repairs", while I believe all the owners are responsible for "extraordinary repairs".

When my father passed away, on paper I became part owner in my parent's house, but my mother had the right of use of it until her death. I paid no taxes, and she covered all expenses. Frankly, if I wasn't aware of the laws, I wouldn't even have known I owned anything.

That said, Louisiana law is VERY different than all other states. But while the twists and turns are different, often the guiding principles can be similar, so that's why I decided to post the info.

 

[tasha99]

NinaBella, this was very helpful. The property lists both Dad and Stepmom as owners. I was sure this was the case, but good to have it confirmed.

But what type of ownership? IANAL, but the way I understand it, if it's tenancy by the entirety or joint tenancy, stepmom owns all of the house now. If it's tenancy in common, your dad's portion can be passed on.

 

[tvguy]

What's to stop her from changing her will and leaving your wife out? I don't see how that makes sure that there isn't a mess left behind at all.

Nothing to stop her. It's her money now. How does it make sure there isn't a mess left behind? It is ALL spelled out in writing. When her dad died, there was no dividing up some assets and not dividing up others. It was all black and white, other than the car.

 

[starry_solo]

NinaBella, this was very helpful. The property lists both Dad and Stepmom as owners. I was sure this was the case, but good to have it confirmed.

I think most of us figured that it was based upon your post. What is important is how title to the property was held. Joint tenants, tenancy in common, tenancy in its entirety (reserved for married people that have met the requirements of joint tenancy). If it was held as joint tenants or tenancy in its entirety, it doesn't matter what the will, pre-nup, post-nup says. The property is 100% hers after her husband's (your father's) death.

 

[WallE71]

If the proceeds from the house go to her and you/your sisters, it is split 50/50 in ownership. I would think any court would see it is split ownership. So, I would assume the taxes would be split responsibility as well. Yes, the taxes go up over time, but with it goes the price as well. Holding the house my get you more years from now. I am not a lawyer just seems reasonable.

 

[flowergirl45]

Hello all, OP here. I have had some good discussion with my Stepmother about the house, taxes, upkeep, etc. Prior to my bringing the subject up again, she re-thought her request for my sisters and I to contribute financially when we don't live in the house, and told me that during our conversation. We've also hired an attorney to ensure that our (sisters) names are added to the property title, and to review the situation in general.

I've also decided to spend time with her each year to help her with upkeep projects - painting or other large scale jobs. This will give us good bonding time, will reduce financial outlay to hire said projects to be done, and will also help keep up the property value.

I realize that this may not address every point raised by other posters, but I am happy with the direction the situation is headed. Thank you all so much for assisting me in thinking this through!

 

[marcyleecorgan]

Hello all, OP here. I have had some good discussion with my Stepmother about the house, taxes, upkeep, etc. Prior to my bringing the subject up again, she re-thought her request for my sisters and I to contribute financially when we don't live in the house, and told me that during our conversation. We've also hired an attorney to ensure that our (sisters) names are added to the property title, and to review the situation in general.

I've also decided to spend time with her each year to help her with upkeep projects - painting or other large scale jobs. This will give us good bonding time, will reduce financial outlay to hire said projects to be done, and will also help keep up the property value.

I realize that this may not address every point raised by other posters, but I am happy with the direction the situation is headed. Thank you all so much for assisting me in thinking this through!

You are welcome! Best of luck to an amicable adult solution to all of this

 

[AquamarineSteph]

Hello all, OP here. I have had some good discussion with my Stepmother about the house, taxes, upkeep, etc. Prior to my bringing the subject up again, she re-thought her request for my sisters and I to contribute financially when we don't live in the house, and told me that during our conversation. We've also hired an attorney to ensure that our (sisters) names are added to the property title, and to review the situation in general.

I've also decided to spend time with her each year to help her with upkeep projects - painting or other large scale jobs. This will give us good bonding time, will reduce financial outlay to hire said projects to be done, and will also help keep up the property value.

I realize that this may not address every point raised by other posters, but I am happy with the direction the situation is headed. Thank you all so much for assisting me in thinking this through!

I'm glad to hear that you've been able to discuss the situation with her! I think that sounds like a very favorable outcome for everyone!