My question involves estate planning in the state of: Michigan
Sally and Judy are sisters and their mother Betty died last year. Judy (the personal representative) is on title of Betty’s paid-off house $50,000 house but does not live there. Sally is not on the title but does live there. Sooner or later they are going to sell the house but it may take a long time in this market. There are 3 other siblings. All 5 are to split up the proceeds equally.
Question #1: When the house gets sold – what kind of taxes will have to be paid? (Inheritance? Gift?)
Question #2: If Sally is quit-claimed onto the title now to avoid paying non-homestead property taxes before the house gets sold – will that effect the kind of taxes will have to be paid when the house gets sold?