Question about my parents will/ trust
My mother passed away May 14th 2020 and father passed away on December 1st 2024.
In the will/trust it says that the money assets are to be evenly split between my brother, sister and myself, that’s not the question but if you have any comments about that let me know.
The question I have is that his will/trust says that my sister will get 60% and my brother and I will get 20% each of the house, that’s because my sister took care of my mom and dad a lot and that’s what they wanted, that’s fine, it turns out my sister the 60% owner of the house wants to live in the house and that’s fine also but she said she doesn’t want to do anything with the house for a year.
She has her own townhouse and I guess will have to sell hers I don’t know.
My brother and I don’t think that’s fair not doing anything with the house for a year.
What is usually the process in a situation like this, what legally should be done in how soon should it be done?
Terry Says
Well, that’s an ambiguous will, and it has created a problem. First, let’s determine the dollar amount that each of you should get.
For example, if the house is worth $100,000, then each of you is owed $20,000.
Now you mentioned other “money assets” that might be available. So if there was $60,000 in cash, or an IRA, and it was to be split equally, she should give you each $10,000 out of her $20,000 (her third) and that would at least partially offset your $20,000 equity in the house.
OR, another solution would be for her to take on a mortgage or home equity loan on the property and use it to pay each of you your $20,000.
If none of the above works, you could ask an attorney to draw up a private one-year mortgage loan on the property before you transfer it into her name. A legal document would specify an interest rate (6%?) on the $40,000 she has agreed to pay each of you in one year. At least you’d have a legal document showing your equity in the home and a fixed date upon which it must be paid to you.
It’s important to transfer title to the house soon, so she can establish a new “cost basis” — the value on the date of death. I’d suggest meeting with an estate planning attorney to help you work through this situation, without causing hard feelings, or a hardship on her. Without proper documentation one year could drag on into a huge legal battle.
