How can I trade my 20% inheritance equity to a sibling for real property in their name?
My father passed away in July 2014. His residence was willed equally to his 5 children. One of my siblings wants to buy the property from the rest of us but needs a bigger equity share to get a loan. The primary home is still in my fathers name but if not sold by Sept 1 it will have to be transferred into each of our names. The sibling wanting full ownership also received a separate property in its entirety in the will.
1) Can I trade my portion of my father's inheritance in his primary home to my sibling in exchange for the separate piece of property they received and which is now titled in their name? My equity % in the primary home is equal to the value of the other property (approx. ,000) so no money will be exchanged and both of us are agreeable to this exchange.
2) What is the best (least expensive) means to make the exchange?
3) Will it be possible to simply do quitclaim deeds; his property to me and my equity to him?
4) Do we have to claim the true value in the quitclaim or just a dollar?
5) No tax was due by any of us for the inheritance(s) Will there be any tax issues for either of us immediately or in the future to be aware of?
6) Will a lawyer be required?
Both properties are located in the same county and township in WI and both of us also currently live in this township.
Thank you for any help and expertise you may offer regarding this unusual circumstance.
(1)1 Comments
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Yes, you can trade your properties.
Go to the county recorder's office to find out the exact procedure. Deeds generally have specific language to use and you must describe the property accurately in the deed. If you want to do the transfer yourself, you will need to make sure you have the language correct.
Also, you might want to do a title search to make sure that there are no claims against the property your brother is trading you, such as by a lender who might have loaned money to him with the property as collateral.
(3) Yes, the normal way in the US is quitclaim deeds.
(4) A quitclaim deed only lists the money (or other consideration) that changes hands.
(5) Since it is a trade for equal value, there are no taxes.
(6) No. Normally a lawyer is only needed if you are dealing with a stranger and the transaction is complex. As long as you follow the procedures of the clerk's office correctly there should be no need for a lawyer. In fact, a lawyer might be undesirable because they could slow things down. Also, since this is a non-standard trade, a lawyer actually has a higher chance of screwing something up because they will not give it long thought, the way you would. Also, they will use messengers and mail instead of actually going to the recorders office, another source of error which you can avoid by doing the process correctly--ie visiting the recorders office. Lawyers don't like getting out of their chairs and this causes them to make a lot of mistakes.
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