When inherited land is sold, it can cause family strife on how the property and sale should be treated. Or sometimes, land is left to the deceased children, but family strife makes selling the land the most attractive option to stop the feuding. For tax purposes the sale of inherited property is treated differently depending on if a will directed the sale or if the treatment of the property is left up to the heir without direction from a will, even if the sale was within the wishes of the deceased. The existence of a will makes the difference of whether the estate or the heir will be responsible for the taxes on the sale. This situation highlights the importance of having a will that clearly lays out all wishes and intentions for how property will be handled.
See Judy O’Connor, How to Deal With Disputes Over Inherited Land, Fox Business, Nov. 4, 2014.
