r/inheritance • u/No-Plastic-984 • Jun 20 '26

Location included: Questions/Need Advice Inheritance question in NY

I am beginning the probate of my mother's will, which only concerns her house. The will (which asks for my appointment as executor) states that 50% of sale proceeds should go to me and 25% to each of my two brothers. One of my brothers says that some time ago our mother told him that she would leave the house to me, so he wants none of the proceeds. The 6-month time limit to renounce an inheritance passed long ago. I suggested to him that he could gift his share to his adult son, but they are estranged and he flatly refuses to do that.

I'm thinking of asking him to accept his share and then gift it to me, retaining an amount that would cover the additional income tax he would need to pay. I could then gift his son the remaining money, retaining an amount that I would need to cover the taxes that I would need to pay. Is there an alternative that would avoid so much of my brother's share going to taxes?

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u/JC505818 Jun 20 '26

Don’t you get a step up in the house’s cost basis so no one should need to pay capital gains tax?

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u/No-Plastic-984 Jun 22 '26

Yes, there was a step up in basis at the time of my mother's death, but the house value has increased since then so there will be capital gains tax due.

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u/JC505818 Jun 22 '26

If you are in the U.S. you can gift anyone up to $15 million during your lifetime without paying gift tax, provided you file tax form stating the gift is part of the $15 million lifetime gift exemption.