Buying or Selling a Home/Donating co-inherited real estate
Hi! I inherited my aunt's townhouse along with 2 other heirs, by default. She had died with a will, but it had not been witnessed, so in Alabama where the property is located, she was considered to have died without a will, as the state does not recognize as valid non-witnessed wills. Ay any rate, it has been on the market at well below market value, for the past 1 1/2 years, with only 1 contract which fell through at the last minute. I am paying all the bills associated with it myself, as the other 2 heirs have refused to help. It has been vacant the entire time, and now the insurance company is threatening to cancel the homeowners insurance. My question is: can I donate my portion to a charity of my choice and therefore rid myself of this burden? Thanks!
What you have there, Doug, is something akin to a white elephant. Nobody seems to want it at any price and the apparent owners don't want it because of its cost, either. However, what you should be doing is putting your head together with the other two heirs and have them execute to you a quitclaim deed from each of them. It could be done on one document. But you would have to have each person's signature notarized on the one document. Be sure to tell them what you have in mind as to how you plan to dispose of the property.
You then have the two quitclaim deeds you got from the other two heirs recorded in your name in the county courthouse of the location where the townhouse is located. Then find a local real estate or an estate attorney, one who is familiar with Alabama probates and estates, and ask him or her how you can donate the property to a charity with little or no effort or cost.
As an IRS tax benefit, be sure to ascertain the value of the townhouse upon donating it. You will then be able to deduct its value from your 2014 taxes. To make sure you are doing this right, you might want to consult with a certified public accountant or other tax expert. There you have it, Doug. I do wish you well.
California Real Estate Broker