Thanks for your reply. I do still have a question as I am confused about the life estate deed. I will type the info from the actual deed to see if you could better help me decide if the transfer was a gift or an inheritance.
This deed, made and entered into this the 17'th day of August, 1978 by and between (my wife's dad), party of the first part and his 7 daughters, parties of the second part. For and in consideration of the sum of one dollar and love and affection for the parties of the second part, (her dad) does bargain, give, grant and convey the following parcels of land unto each of his seven daughters respectively. It then describes the property and where the deed is located, etc. Then it says the following: Said conveyances are specifically made subject to (her dad's) right to receive annually all of the tobacco rental and his right to reside in his home on tract #3 (one of my wife's sisters lot) all the remainder of his life.
My whole problem concerns the life estate portion of the deed. Once I have that issue settled, I know how to finish filing my taxes. Do you have any more comments? Again, thanks for your help.
