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Mom is a smart cookie. She's set things up so the responsible daughter has enough self interest to keep things going
even if the er, less responsible daughter can't handle the situation.
Mom is very high IQ but also a severe alcoholic with questionable character. My sister is designated as power of attorney and health care proxy.
Quote:
Originally Posted by evening sun
Your sister says she will move out after one year, but where will she go to? Seems to me, she might change her mind & want to stay there.
Yes you can inherit without being on the deed, most houses that are inherited are done without being on a deed.
I totally agree, I think it is very likely she will want to stay in the house longer than a year.
If my sister's name is on the deed and mine is not does that give her the right to all proceeds as the sole owner even if the will says to split the proceeds? There are 2 ways her name is most likely going to end up on the deed - either through this deed with life estate that the lawyer wants to do, or the madicaid caregiver exemption (both would put her name on the deed.)
Quote:
Originally Posted by Parnassia
Maybe another option is for your sister to simply buy out your interest in the house. Simplistically, she pays you your share up front. Then she can live in it as long as she likes. You have gotten your half and are no longer involved. The current value of the house would need to be established so she can pay you 1/2 of whatever that value is. Of course, what that value is probably won't be the same as in some future when she decides to move out. If the house is deteriorating, the current value might be higher than it would be at some future date, but it also might be lower.
You can't always have your cake and eat it too OP. There are pros and cons to everything.
That would be my preference, for my sister to buy me out and then she is free to live there forever or sell when she wants and keep all proceeds. But she will not do it. She flips out at the mention of this idea as if it's the cruelest thing she ever heard of. She believes the only fair way is to split any money that's left in mom's accounts, and then after the house sells split that money. I told her I would be happy to take less than half the current market value. I explained how she could make out way better than me that way. She pitched a total fit and will not do it.
Mom is very high IQ but also a severe alcoholic with questionable character. My sister is designated as power of attorney and health care proxy.
All that will be a moot point once your mom passes away. It will mean nothing in terms of her estate.
There are 2 ways her name is most likely going to end up on the deed - either through this deed with life estate that the lawyer wants to do, or the madicaid caregiver exemption (both would put her name on the deed.)
Don't know. Your attorney needs to answer.
That would be my preference, for my sister to buy me out and then she is free to live there forever or sell when she wants and keep all proceeds. But she will not do it. She flips out at the mention of this idea as if it's the cruelest thing she ever heard of. She believes the only fair way is to split any money that's left in mom's accounts, and then after the house sells split that money. I told her I would be happy to take less than half the current market value. I explained how she could make out way better than me that way. She pitched a total fit and will not do it.
I do know that you as executor can sell the house even if you are not listed on the deed. As I already explained, I did it. Think about it. Thousands if not millions of children/heirs sell houses they inherit with deeds that only have some deceased relative's name on them.
Your sister needs to get a grip. You are not "doing anything to her" other than providing her with another completely reasonable and legal option and executing the authority given to you by your mother. The house will eventually be an inheritance. Either way, sounds as if the house must be sold eventually so that's what your sister needs to face up to. All that isn't known now is the actual date of sale.
IMHO, an impartial dispassionate financial advisor should sit down with everyone and present reasonable options listing the pros and cons of each. Those options include:
a) buying you out during probate leaving the other sister to her own devices,
b) selling the house outright during probate and splitting the proceeds,
c) leaving one sister to live on in the house under some sort of life estate to sell later,
d) or ??
This has nothing to do with being "fair", cruel or anything else. It is called reality. She's the one trying to avoid it, not you. I suspect she's getting so emotional because she resents the fact that your mother chose YOU to act as her executor instead of her. What makes it awkward right now is that you don't have any authority and she does (because of the POA). Your authority only begins after your mother passes. You will be left holding the bag at that point and that's what your sister refuses to realize.
Last edited by Parnassia; 08-10-2023 at 04:18 PM..
Have your mother leave the home to your sister subject to a mortgage created on the house payable to you for 1/2 the value of the home. Have a provision to have the home appraised. The mortgage could be set up to be interest free and no payments for a year. Maybe two year so she has some extra time to move. When the home is sold your mortgage would be paid.
Have your mother leave the home to your sister subject to a mortgage created on the house payable to you for 1/2 the value of the home. Have a provision to have the home appraised. The mortgage could be set up to be interest free and no payments for a year. Maybe two year so she has some extra time to move. When the home is sold your mortgage would be paid.
Wow, that is an intriguing and creative idea. Did you just come up with that or have you seen it done before?
Wow, that is an intriguing and creative idea. Did you just come up with that or have you seen it done before?
One potential pitfall might be if the house sale doesn't realize enough to satisfy the mortgage one or two years hence. Who's on the hook for making up the difference?
Your mother is 70, statistically she has quite a few years to live, even with alcohol involved.
If your sister is living there and fearful of the house being sold because you are co-inheritor per current will then the will might get changed and you may not know about the change until your mothers passing. That happened to someone I know very well, only 1 of the mothers grown children inherited her home and the others weren't expecting it.
One potential pitfall might be if the house sale doesn't realize enough to satisfy the mortgage one or two years hence. Who's on the hook for making up the difference?
Yes. Likewise no appreciation. Might add into the mortgage that if value goes down mortgage is satisfied with 50% of the proceeds.
The first problem I see is that your sister living in the house alone will let it get more run down that it may already be. Maybe not pay the property taxes, even. So when it comes time for the sister to move (which I doubt will ever come, frankly), what would you get for the rundown house? Or what would your recourse be if the state seized it for nonpayment of taxes? Or what if she calls you for the money to pay the property taxes, or will you both share in that expense? Are you really going to sue her to get her out of the house, if she doesn't move out in a year after your mother's death?
Is it an expensive house? Might it be better to just wash your hands of the whole house matter entirely and let your sister get it and live in it, and the house is now her problem entirely?
The first problem I see is that your sister living in the house alone will let it get more run down that it may already be. Maybe not pay the property taxes, even. So when it comes time for the sister to move (which I doubt will ever come, frankly), what would you get for the rundown house? Or what would your recourse be if the state seized it for nonpayment of taxes? Or what if she calls you for the money to pay the property taxes, or will you both share in that expense? Are you really going to sue her to get her out of the house, if she doesn't move out in a year after your mother's death?
Is it an expensive house? Might it be better to just wash your hands of the whole house matter entirely and let your sister get it and live in it, and the house is now her problem entirely?
One problem that I see is if she has no money she will not be able to maintain it.
Probably need to clarify if mom's total proceeds amount to $600,000. including the house. If you split 1/2 both get $300,000. She will have to manage on that amount.
Need to further clarify if she has any income. Social Security, pension, something to live on. With no income $300,000 may not last so long.
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