QUESTION: I am the executrix of my mother's house and my son is interested in purchasing it. It was appraised for $77,000 but he can't go any higher than $60,000. Do I need my sister's approval (the house was left to the both of us) before he can purchase the house? Also - could he use a gift equity to purchase this and what other fees are involved on not only his side - but mine as well. Thanks xxxxxxxx in Ohio ========================================================= david ingram replies: We have the same situation happening in my family where my daughter wants to purchase her grandfather's house which was left to her mother and her aunt. What should be easy becomes difficult. 1. Unless your sister is childless, there is no reason that her sister should give up part of her half for your son even if he is her nephew. IF SHE DID SO, EVEN FOR SUCH A SMALL AMOUNT, I GUARANTEE THERE WILL BE RESENTMENT SOMETIME. 2. Your sister should get her $38.500. If you are wanting to sell it to your son for $60,000, she gets $38,500 and you get $21,500. Because of the possibility of gift tax, you should really sell it to your son for the $77,000 and you forgive $11,000 for 2005 and the other $6,000 in 2006. I have no idea what your fees will be in the transaction. The last time (shows my age) that I had anything to do with a house sale in Ohio was 1960. Check with any local escrow office. Answers to this and other similar questions can be obtained free on Air every Sunday morning. Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am a permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE talk show called "ITS YOUR MONEY" Those outside of the Lower Mainland will be able to listen on the internet at www.600AM.com <http://www.600am.com/> Call (604) 280-0600 to have your question answered. BC listeners can also call 1-866-778-0600. Callers to the show and questioners on this board can also attend the Thursday Night seminars on finance and making your Canadian Mortgage Interest deductible. 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