if my mom's property had been paid off & it's in the trust, shld she sell it b4 she pass or wait till she pass

Question

How should we avoid paying too much tax , shld my mom sell the property before she pass or wait after she pass. It's under revocable trust and property had been paid off. What other means to avoid paying too much capital gain or me having to pay inheritance tax.

Answer 1

If you sell it, your mother would have to pay capital gains tax. On top of that, you will still have the inheritance tax when you inherit her trust if her trust is worth enough to qualify for the inheritance tax. Therefore, if you sell the property, you will pay taxes twice on the same money.

Keep the property and sell it after she passes away. Why pay tax twice.

Every state is different. Check with a local qualified accountant and/or financial adviser.

Answer 2

It depends on whether she wants to pay the taxes or leave it that to the ones who will inherit it. The inheritors will pay once but if your mom sells it now both her and you will pay.