[scairns]

I moved in with my mother to be her caretaker after my father passed away. She is wanting to leave me the home (I have 2 siblings).What would be the best way to go about this? We live in Texas. Should she change her will or is there a way to do it before something happens to her. Need info on inheritance taxes!

[ebaines]

There are no inheritance taxes in TX, so if your mother changed her will to make you the heir to the home then it would be yours upon her death. There may be estate tax implications, but only if (a) she passes away in 2011 or later and (b) the total value of her estate is greater than $1M. By inheriting the property your cost basis becomes the fair market value at the time of her death (assuming she does not pass away in 2010).

Alternatively she could gift the property to you while she is still alive, but then your cost basis in the house would be equal to her existing cost basis, which would mean you may have a larger capital gains tax to pay if/when you sell the home.