Who pays the tax bill?

[heather913]

There are laws that govern this sort of thing and they vary greatly by state and the facts of the case. Don't rely on random internet strangers. Pay the money and get an attorney to sort this out.

 

[AlohaNow]

My SIL attempted this as well when she had been living in the family home at the time that the last parent died. She told DH and the other sister what they owed for the property tax bill, when she was the only person living in the house. All three siblings at the time owned one-third of the home, but only she lived there. Both parties declined to ‘help’ her out with the tax bill. And the SIL in NY may have heard the laughter all the way from Hawaii even after the phone had been hung up after that request! As if…..

Her choice to stay in the home is her decision to continue the full upkeep. Don’t like it? Time to move then.

 

[flowergirl45]

OP here. Thank you all so much for your thoughts. You have brought up more issues than I had even considered. I will try to provide answers to questions that have been asked. Her state is Illinois. I live in Virginia, my sisters in Minnesota and Texas. I mention our states just to say that we wouldn't get back to Illinois very often in case the house went downhill. Her children live in Colorado and Minnesota, so they don't get back often either. I will say that at present I would not expect her to let the house get rundown. However, no one knows what the future holds, and as posters have mentioned, this situation could become ugly quickly. Even if she had the best of intentions, what if she developed an illness that kept her from keeping the house and land in good condition?

Both her and dad's name are on the house deed. She and dad equally paid the tax bill (actually all bills) while he was alive. The house is paid off. A home equity loan...ugh I had not thought of that. Again, I do not think she would do that, but we all know how money can make people do funny things. I wonder if she will also want to share other costs - insurance, tree trimming, roof replacement, etc.

The rest of dad's very modest estate has already been distributed to us girls. I do want to add that my stepmother kept dad at home as long as she could- which saved quite a bit of nursing home money. I truly do not want this situation to ruin our relationship. It does sound like talking with a lawyer is appropriate. I think that may offend her, which would not be my intent. I would also like to just chat with her about some of these questions, but I am not sure how she will take that approach either. Ugh.

I will post updates to this thread when appropriate. Again, thank you all for your input!

 

[TwoMisfits]

OP here. Thank you all so much for your thoughts. You have brought up more issues than I had even considered. I will try to provide answers to questions that have been asked. Her state is Illinois. I live in Virginia, my sisters in Minnesota and Texas. I mention our states just to say that we wouldn't get back to Illinois very often in case the house went downhill. Her children live in Colorado and Minnesota, so they don't get back often either. I will say that at present I would not expect her to let the house get rundown. However, no one knows what the future holds, and as posters have mentioned, this situation could become ugly quickly. Even if she had the best of intentions, what if she developed an illness that kept her from keeping the house and land in good condition?

Both her and dad's name are on the house deed. She and dad equally paid the tax bill (actually all bills) while he was alive. The house is paid off. A home equity loan...ugh I had not thought of that. Again, I do not think she would do that, but we all know how money can make people do funny things. I wonder if she will also want to share other costs - insurance, tree trimming, roof replacement, etc.

The rest of dad's very modest estate has already been distributed to us girls. I do want to add that my stepmother kept dad at home as long as she could- which saved quite a bit of nursing home money. I truly do not want this situation to ruin our relationship. It does sound like talking with a lawyer is appropriate. I think that may offend her, which would not be my intent. I would also like to just chat with her about some of these questions, but I am not sure how she will take that approach either. Ugh.

I will post updates to this thread when appropriate. Again, thank you all for your input!

So, the estate has nothing anymore but the house...the tax bill is only $3000, so I'm assuming the house currently is valued under $200K...possibly even under $100K. Split 50-50 and then by thirds, you're talking each kid has a value of about $33K, if this is at the high end value and $16K if this is at the low end...is this worth getting a lawyer involved (lawyers are not cheap) or is it worth just letting it go? You can probably relinquish your share of the house in a simple, straightforward way at probate with almost no costs (and stepmom could pay those to make it kosher).

Not saying I'd do this, not saying I'd advise this...but lawyers typically have retainers for $5-$10K and then you'll have the expense to litigate...and the hard feelings b/c nothing legally is ever done happily...

And if you don't do this, you'll also either be left paying every year for something that may never pay off or may become a money sink...or again causing the hurt feelings...

Sometimes, inheritances just aren't worth it...this may be one of those times. I mean, if the estate kept the funds to pay for the 1/2 upkeep, that's one thing, but an empty estate with just the house?

I'd probably ask her to sell or ask her to buy you out, 1st, at whatever value she could buy you out for. But if she can't or won't do either...then I might just let it go...

 

[Alesia]

I truly do not want this situation to ruin our relationship. It does sound like talking with a lawyer is appropriate. I think that may offend her, which would not be my intent. I would also like to just chat with her about some of these questions, but I am not sure how she will take that approach either. Ugh.

I will post updates to this thread when appropriate. Again, thank you all for your input!

If you don't want this to ruin your relationship, then you definitely need to talk to a lawyer before you say or do anything else. You need to be absolutely sure not only of your own rights, but also of your legal obligations to your stepmother. It's in everyone's best interest to make sure that things are being handled correctly and within the confines of the law.

I know that no one ever wants to get lawyers involved, but if everyone involved would have consulted a lawyer before any decisions were made, this would have all been ironed out beforehand and you wouldn't be in this awkward position now. Now, no matter how it turns out, someone is going to end up feeling slighted.

Talk to a lawyer before this really turns into a mess.

 

[CouponGirl]

Both her and dad's name are on the house deed. She and dad equally paid the tax bill (actually all bills) while he was alive.

It sounds as though they did not have joint accounts. If that's the case, she may just be so used to the fact they split everything that it may not seem like an odd request to her - in her mind perhaps you already own a portion even though you don't live there. Although for me reading it, it sounds like you don't technically get anything unless she sells.

Perhaps you can speak to a lawyer just to have him\her explain how everything works and not have to mention it or just let her know you want to understand better. Not knowing you or your siblings situations, but this could be a potential financial burden for someone to blindly pay out the taxes if its not necessary.

 

[supersnoop]

I'd start by talking to the executor of dad's estate. If dad intended for her to stay in the house, he should have had a plan to cover any shared expenses. This can get messy, especially if the executor is one of the heirs.

 

[AquamarineSteph]

Clearly she's looking at the children investing in their future if the house becomes yours when it's sold. While it may not be your first choice, depending on how the prenup is worded, she may be able to legally sue for your half of the taxes if they aren't paid. I'm not saying she can or she will. I'm just saying that it's a possibility, since you and your sisters stand to inherit 50% of the property at this point.

I hope that you can resolve it amicably because surely your dad would have wanted it that way. But having said that, you shouldn't allow yourself to be taken advantage of, either. But given that the three children are direct beneficiaries of the property, I can see where the stepmother may see a joint responsibility for the taxes. Good luck with this situation, and please let us know what happens!

 

[flowergirl45]

OP again. My uncle (dad's brother) was the executor of the estate. He was not a beneficiary. He liquidated dad's accounts and sent us girls checks. In hindsight, I wish a probate lawyer would have been involved. But I'm sure my uncle was trying to keep costs down. Also, my sisters most likely would have voted against a lawyer due to the cost. And at the time my stepmom was thinking she would sell the house and move near one of her children. Situations evolve over time, and sometimes you wish something had been handled differently. Plus, this is my first parent to pass, and I really had no frame of reference. But I'm feeling a little naive.

The house is located in southern Illinois. My best guess is it would sell for around $200,000. Dad did have a will (I have a copy) but it too was mute on the subject. I knew my dad well and do not think he envisioned his daughters paying the tax bill. She hasn't told my sisters yet of her expectation of assistance with paying the taxes. I think she wants me to do it. Similar to the poster who mentioned her SIL, I can hear their laughter now. We are all getting together for a couple of days for my sister's wedding in Minnesota this weekend. Perhaps I can get tell them then. Because you know that's what a bride wants to think about at her wedding lol.

Again, you all have been so helpful, thank you!

 

[starry_solo]

You say that both your step-mom and father were on the title to the house. How did they take title? Joint tenancy? Tenants in common? Tenancy by its entirety? That is the key issue because if they took title as joint tenants or tenancy by its entirety, it doesn't matter what the will says. Stepmother gets the entire property and can leave it to whomever she chooses to.

 

[tvguy]

You say that both your step-mom and father were on the title to the house. How did they take title? Joint tenancy? Tenants in common? Tenancy by its entirety? That is the key issue because if they took title as joint tenants or tenancy by its entirety, it doesn't matter what the will says. Stepmother gets the entire property and can leave it to whomever she chooses to.

Or maybe a trust?

 

[Jen and Ashwin]

I am not an estate attorney and only vaguely remember my trusts and estates class, but this stuff can be very confusing. I would speak with an attorney that is knowledgable about Illinois trusts and estates law because there are many factors that could effect the final dissolution of the property. The actual nature of the property interest that your stepmother has in the property is really important to the analysis. If the prenup and the will do not match language, this could present issues as well. Depending on the nature of the property interest, your options and obligations to the property may vary.

For example, you and your sisters could have been granted what is called a 'future interest' in the property. In this case, your stepmother would have a "life interest" in the property (to live in the home until death) and would be under a legal obligation to maintain the estate and not do anything that would hurt your future interest in the property. If you do have a vested future interest, it can be divested (sold or transferred) even while another person (your stepmother) holds possession. This means that you could sell your portion of the inheritance in the home now rather than waiting until your stepmother sells or passes way. But it could be that the home is held in trust, which would have a completely different set of implications for how and when you inherit.

This is a very confusing area of law, so I strongly urge you to speak with an attorney before you speak with your stepmother.

 

[starry_solo]

Or maybe a trust?

I was thinking that, but the OP said that both of them held title to the property so that made me think as individuals, not in a trust.

 

[mom to minnie&mickey]

If she wants you to pay your dad's share of the taxes (and i can see her asking for future repair bills etc.) then she needs to give you in a monthly payment half of what the house would rent for. Then you would have an income to share the home's maintenance 50/50.
Since your dad is not occupying half the house then she needs to pay for his half that she is using as she now has a lot more space and can do whatever/with whomever she wants to.
Her demand is not reasonable at all and she has opened up a can of worms with it. I am very happy you girls have had a good relationship with her but things always change when one spouse dies. Good luck.

 

[tasha99]

See a lawyer. For one thing, as previously mentioned, you need to know how is the house deeded. It doesn't much matter what the will or prenup say if it's deeded so it all goes to her.

I agree with the poster above who says in order for it to be fair for you to pay tax, she should be paying rent. Or you could move someone in, lol!!

 

[MKCP5]

Fascinating questions. Following

 

[marcyleecorgan]

A lawyer is going to be your best resource but I can definitely say that it is totally unreasonable of your stepmom to ask you and your sister to pay ANYTHING on a property you are not currently living in, nor receiving any income from the property.

If she legally married him, she's responsible for the taxes much more so than some beneficiaries. Not cool to pass off some of the responsibilities and obligation just because she only wants the benefits of the contract. That's not how a contract works - it lays out who is responsible for what. If you didn't have anything to do with the purchase, the insurance, the title, or any part of this, why is she trying to involve you in a situation that was clearly marital in nature?

 

[MKCP5]

I hope you work it all out well for everyone OP! These things are so hard <3

 

[NinaBella]

Unless your name and your sisters name are on the deed, you currently do not have any legal or financial interest in the home. Only the individuals on the deed have legal and financial interest in the home. This means, you are not responsible for anything to do with the home whatsoever. The prenuptial agreement your dad signed had good intentions but until she passes, there is still no legal or financial interest in the home. If she is inclined to have the deed changed to include you and your sisters, then that changes everything. And if you and your sisters were on the deed, your names would also be on the insurance policies as an additional insured thus any claims check paid out on the home would contain all of your names. You would also get notice if the policy cancelled for any reason. As the full-time resident, she would still be the primary on the homeowners insurance policy. It is the same if the parents had the home deeded to a trust. The parents would be the trustees and the children would be the beneficiaries. The Beneficiaries have no legal or financial interest in the home until the trustee(s) are deceased (at which time the home would be re-deeded to the beneficiaries).

If the home is not worth much, I would probably just tell her that I and my sisters were not interested in inheriting the home. Like others have said, it might not be financially worth it and if the home were to need repairs before selling, may not even make a profit.

The answer to your question is if you and your sisters do not have any legal or financial interest in the home, you do not pay anything contributing to said home. If she fails to pay the taxes or her home insurance, as the sole surviving individual on the home, financial responsibility is on her.

Also, if she wanted to take a HELOC on the home, the prenuptial agreement would not prevent her from doing that.

 

[Shughart]

I definitely agree you need to speak with an attorney, but my gut reaction to this would be no if asked to do this.