[WSBAPT] Pro Rata Distribution, heirs now want to swap house interest for money

[Jennifer Modak]

Hi Listserve
A house was distributed by deed to two heirs, and all the money paid out (taxable estate so done end of last year), now heirs want to swap the ½ interest in property for money, without paying excise tax.

Question: I I don't' think it is likely but wondering if the heirs sign a TEDRA agreement for non-pro rata distribution and pull the property (1/2 interest) back into the probate and the money, and then transfer to avoid the excise tax? The total excise tax owed would be around 4K.

Thank you all

Jennifer Modak


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