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So it's basically taking an interest-free home equity loan against the property, in a round-about way? You're basically de-valuing the property since whoever bu
by CorpOverreach 4y ago
So it's basically taking an interest-free home equity loan against the property, in a round-about way? You're basically de-valuing the property since whoever buys it next will have to pay a lump sum in taxes to take ownership.
I guess that doesn't matter to you if you're dead.
What happens if the deferred taxes exceed the cost of the house?
- jfim 4y agoThe estate has to pay the taxes, so they can pay the taxes and keep the property, or sell it and pay the taxes using the proceeds. I believe that interest also accrues during the deferral. I'm not sure what happens in the case where the accrued taxes exceed the value of the house, though.
- jfim 4y agoJust looked it up actually: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.33.htm#33.06 https://statutes.capitol.texas.gov/Docs/TX/htm/TX.33.htm#33.... Basically they put a tax lien on the property, they just don't collect on it while the original homeowner is occupying the property. I'm not a lawyer, but my basic understanding of this is that if it exceeds the value of the property, the estate can just let the city/county seize the house. Otherwise, they'd need to pay the deferred taxes in order to transfer the title to the heirs. Obviously this is not legal advice.