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/u/FlamingoMingo333
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I have a friend who inherited a trust Her parents died and she was named as executor/trustee She is also beneficiary w her 3 sisters She gets 1/2 and her 3 sisters get 1/3 each
As executor she gave herself a gift of equity of $400k She gave her sisters about $300k total
The property was valued at $635k, she took out a mortgage of $359k and bought the property for $630k (her parents had paid off the original mortgage a while ago)
To take out the mortgage she applied the gift of equity from the estate of $400k
I’m trying to help her understand her mortgage payments/what this all means because she is sick and does not understand the terms.
Was she allowed to gift herself $400k in equity from the estate and then use that amount to buy the property and take out a mortgage on it?
She also transferred title to herself after making the gifts of equity and then purchased the property from the trust and took out the mortgage
Does this make sense? I’m trying to get my accountant to help her and may need to consult with a lawyer…
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Gift of equity and mortgage question
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As executor she gave herself a gift of equity of $400k She gave her sisters about $300k total
The property was valued at $635k, she took out a mortgage of $359k and bought the property for $630k (her parents had paid off the original mortgage a while ago)
To take out the mortgage she applied the gift of equity from the estate of $400k
I’m trying to help her understand her mortgage payments/what this all means because she is sick and does not understand the terms.
Was she allowed to gift herself $400k in equity from the estate and then use that amount to buy the property and take out a mortgage on it?
She also transferred title to herself after making the gifts of equity and then purchased the property from the trust and took out the mortgage
Does this make sense? I’m trying to get my accountant to help her and may need to consult with a lawyer…
submitted by /u/FlamingoMingo333
[link] [comments]
Gift of equity and mortgage question
Continue reading...