You are absolutely right. The price you mention here is well below the point
where it would be affected by the estate tax. You have certainly done
nothing illegal here.
And, yes, there is nothing to prevent a person from selling something for
less than it is worth but if the IRS deems the transfer to be an attempt to
avoid taxes....as in a large estate that the IRS says is worth millions and
they want to get their part of it at the owner's death, then the buyer &
seller better be ready with a team of lawyers to prove that it was not tax
evasion.



> We own a piece of beach property that we bought from my father in law for
> $1. It's market value is somewhere between $70-150,000. Actually, we own
> 1/3
> of it, and paid 1/3 of a dollar to him for it. He was getting ready to
> retire and tired of maintaining the property. A lawyer drew it up, so I
> don't think there was anything illegal involved.
>
> If this is a personal issue for you or anyone you know, certainly check
> with
> a lawyer familiar with estate planning. The downside of it is, that if you
> plan to live on the property until your death, you want to be sure you can
> trust the person you sell it to to honor that expectation because legally
> they don't have to do so.
>
> Anne
> Anne Pemberton
> [log in to unmask]
> http://www.erols.com/stevepem
> http://www.erols.com/apembert
> http://www.educationalsynthesis.org
>
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