Expert: Dick Dennis - 7/16/2006

Question
My mother in law passed away and left her house to my wife and sisterin-law (the executer). If my wife chooses to buy her sisters half, what is involved? Does the county half to know how much we paid? Will the value rise to full value even though we paid her 90000.00 for it?  Can we say we paid 10000?


Answer
You like to play dangerously, don't you? The county is going to catch up with you sooner or later. It's up to you how much you're going to report to the county. The house is located in an area of houses of certain values. If all of a sudden one of them "sells" for substantially less, do you think they are going to let it go?

Further, is your wife going to plunk down cash for the house? Or is she going to get a loan? If she gets the loan, then there is no way you're going to get away with your little fib. They are going to ask you how much is your loan. And if your loan is more than what you paid, well . . . you know the rest.

When you mother-in-law died, the attorney involved in her probate (if there was one) may have already reported the value at which it was transferred.

I'll drop the subject right here. I do wish you well.

Dick Dennis