Hacker News Reader

So it's basically taking an interest-free home equity loan against the property, in a round-about way? You're basically de-valuing the property since whoever buys it next will have to pay a lump sum in taxes to take ownership.

I guess that doesn't matter to you if you're dead.

What happens if the deferred taxes exceed the cost of the house?

View on HN

The estate has to pay the taxes, so they can pay the taxes and keep the property, or sell it and pay the taxes using the proceeds. I believe that interest also accrues during the deferral.

I'm not sure what happens in the case where the accrued taxes exceed the value of the house, though.

Just looked it up actually: https://statutes.capitol.texas.gov/Docs/TX/htm/TX.33.htm#33....

Basically they put a tax lien on the property, they just don't collect on it while the original homeowner is occupying the property.

I'm not a lawyer, but my basic understanding of this is that if it exceeds the value of the property, the estate can just let the city/county seize the house. Otherwise, they'd need to pay the deferred taxes in order to transfer the title to the heirs.

Obviously this is not legal advice.

Reply on news.ycombinator.com