Patricia and her husband Robert own their home in Wisconsin as marital property under the Wisconsin Marital Property Act (Chapter 766). Robert dies, and Patricia inherits the home through his estate. She later sells the home to an unrelated buyer for $420,000. Regarding the Wisconsin real estate transfer fee, which party is responsible for paying it, and does the transfer from Robert's estate to Patricia trigger the fee?
Correct Answer
A) Patricia pays the fee on the final sale to the buyer; the estate-to-Patricia transfer is exempt as a transfer to a surviving spouse
Under Wisconsin Statutes §§ 77.21–77.25, the transfer fee is paid by the grantor (seller). When Patricia sells to the unrelated buyer, she is the grantor and owes $0.30 per $100 on the $420,000 sale price ($1,260 total). The prior transfer from Robert's estate to Patricia is exempt under Wis. Stat. § 77.25, which exempts transfers to a surviving spouse. A PE-500 must still be filed for the estate-to-Patricia transfer with the applicable exemption code noted.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
Homestead portability allows homeowners to transfer a portion of their accumulated homestead tax savings to a new homestead in the same state.
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