What expenses can be deducted from an heir’s share of an inherited asset?

Get Legal Help Today

 Secured with SHA-256 Encryption

What expenses can be deducted from an heir’s share of an inherited asset?

My parents own a house here in TX and my brother has been administrating it for the last 25 years. During that time, he claims he spent about $65,000 fixing up and maintaining the place – the house has been rented out all this time – my parents lived out of town and died last year. The house is valued at $250,000. My brother wants to keep the house. I think we should split the value, which he agrees, but he wants to deduct the $65,000 from my portion. Can he legally do that? Is there no depreciation on his claim for the maintenance and wear and tear?

Asked on May 10, 2011 under Estate Planning, Texas

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Your brother as administrator owes you a responsibility to ensure the estate has proper accounting and that expenses are not wasteful of the estate. Further, as a beneficiary, you have a right to ask for an accounting and to see receipts. I believe here your brother may have wasted estate assets and should not be reimbursed for unnecessary expenses, especially if during those past twenty five years he didn't seek reimbursement from your parents. Further, you are correct. All buildings especially those that are investments do go through depreciation for taxation purposes. If I were you I would either a lawyer who is an estate planning attorney who is also a CPA to audit this estate and give you his or her opinion as to what is owed to whom.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption