ebayseverson[at]mn.rr.com wrote:

- quote -

See "Grantor Trust" and tell us if this describes what you
have done.

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As part of my mother's estate planning in Minnesota, she is
considering deeding her home to my brother and me and
reserving a lifetime estate for herself. The value of the
home is $200,000. She will have no problem staying under the
Estate Tax exemption limit. I understand that if we keep
this arrangement as long as my mother is alive, there is no
estate tax consequence to any party. Is this correct?

I believe when mom passes away, my brother and I will
recieve a stepped up basis at that time.

What is the basis if the house is sold before Mom passes
away and who incurs the tax consequences in this situation?

Thanks for your comments,
Terry

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