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Old 09-25-2019, 04:30 AM
 
52 posts, read 9,096 times
Reputation: 24

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Quote:
Originally Posted by blueherons View Post
Yes, time to lawyer up. Talking to the sister is an exercise in futility. She's already said no.

The free rent for ten years along would **** me off. In ten years, she hasn't been able to save enough money for a significant down payment to buy you guys out of the home?

Sister is shady and selfish.
Agree
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Old 09-25-2019, 04:34 AM
 
52 posts, read 9,096 times
Reputation: 24
Quote:
Originally Posted by shamrock4 View Post
I am not quite buying that explanation from your sister.

I think her daughter receiving an asset (the house) worth $1.2 million at a 1/2 price discount has a little something to do with her thought process. Unfair to the named deed holders and their children/families.

Also, this is totally against the wishes of your parents, which should be upheld out of respect to them.

You need an excellent lawyer if your sister does not come to her senses. The lawyer can explain everything to her. Also, it sounds like she has not met the fiduciary duties of an executor which is a serious issue. Donít let this continue to slide - 10 years is enough.
The next meeting should be fun. Haha
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Old 09-25-2019, 05:57 AM
 
7,354 posts, read 4,059,226 times
Reputation: 15541
Quote:
Originally Posted by Roadrun1 View Post
Not really sure but i googled and this is what I found.

https://estate.findlaw.com/probate/h...ut-a-will.html
It sounds like you have more problems than just the house. Simply assuming that this sister is legally the executor of the estate because she said so may cause all of you problems going forward in addition to the problem you have with the house. You absolutely need to find out if there was or was not a will, if she is the executor and if she has performed her duties as such. In the absence of a will the estate should have been probated long ago. Time for a bunch of siblings to get their heads out of the sand.
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Old 09-25-2019, 06:01 AM
 
63 posts, read 11,799 times
Reputation: 200
Do not sell to your niece at a major discount. Sell to your sister at fair market value. Then she can sell to her daughter at a major discount (and then you can sic the IRS on her for a gift tax violation).
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Old 09-25-2019, 06:01 AM
 
Location: Cary, NC
34,043 posts, read 59,218,308 times
Reputation: 32976
Quote:
Originally Posted by kokonutty View Post
It sounds like you have more problems than just the house. Simply assuming that this sister is legally the executor of the estate because she said so may cause all of you problems going forward in addition to the problem you have with the house. You absolutely need to find out if there was or was not a will, if she is the executor and if she has performed her duties as such. In the absence of a will the estate should have been probated long ago. Time for a bunch of siblings to get their heads out of the sand.

If I was named on the deed I would surely want to confirm:

-There was adequate liability insurance on the property.
-There were no liens against the property.
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Old 09-25-2019, 07:07 AM
 
546 posts, read 206,931 times
Reputation: 1939
Other tax considerations (reasons not to sell to daughter at discount):

1. Because 8 siblings name were put on deed before parents death (assuming this from OP posts) the house was a gift from parents not inherited. Important to the tax man when it is sold to anyone. (see #3 below)

2. The 8 siblings will owe capital gains on any sale based on the parents low cost when they acquired it. If it had been inherited the heirs would have almost no capital gains tax.

3. The IRS frowns on selling a property below it's appraised value because it is a way to defraud the tax man and they will very likely step in and make heirs pay full tax on what the property is actually worth rather than the discounted sale price. You do not want the IRS coming after you, you will lose that battle and end up paying extra money for lawyers and extra tax money to give the daughter a bargain. Triple whammy. Talk to a CPA who can explain why discount sale is a very, very bad idea.
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Old 09-25-2019, 09:25 AM
 
1,238 posts, read 1,075,783 times
Reputation: 1826
My assumption is that your sister's daughter is going to let your sister keep living there, which would be the main reason she's insisting it goes to her.

As others have pointed out, any one of the eight siblings can force a sale through a partition hearing. Get a lawyer. You'll only have to pay 1/8 of the fees, as they will come out of the home sale proceeds before the money is divided.

Technically, I'd say every sibling is owed 1/8 of the rent money she's been collecting (after tax, insurance and upkeep expenses).
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Old 09-25-2019, 09:54 AM
 
52 posts, read 9,096 times
Reputation: 24
Quote:
Originally Posted by twinkletwinkle22 View Post
Other tax considerations (reasons not to sell to daughter at discount):

1. Because 8 siblings name were put on deed before parents death (assuming this from OP posts) the house was a gift from parents not inherited. Important to the tax man when it is sold to anyone. (see #3 below)

2. The 8 siblings will owe capital gains on any sale based on the parents low cost when they acquired it. If it had been inherited the heirs would have almost no capital gains tax.

3. The IRS frowns on selling a property below it's appraised value because it is a way to defraud the tax man and they will very likely step in and make heirs pay full tax on what the property is actually worth rather than the discounted sale price. You do not want the IRS coming after you, you will lose that battle and end up paying extra money for lawyers and extra tax money to give the daughter a bargain. Triple whammy. Talk to a CPA who can explain why discount sale is a very, very bad idea.

Thanks for the tax info
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Old 09-25-2019, 10:28 AM
 
Location: Raleigh NC
10,042 posts, read 7,545,625 times
Reputation: 8633
you should really be speaking with an attorney first - that can explain legal standing and avenues going forward - and then your CPA/tax professional about that end to you (and the other 6).

I wouldn't have a single other conversation/communication with her until the other 7 have done this.
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Old 09-25-2019, 05:12 PM
 
52 posts, read 9,096 times
Reputation: 24
Quote:
Originally Posted by BoBromhal View Post
you should really be speaking with an attorney first - that can explain legal standing and avenues going forward - and then your CPA/tax professional about that end to you (and the other 6).

I wouldn't have a single other conversation/communication with her until the other 7 have done this.
My older siblings are talking about just agreeing to her demands to save time. They don’t know if they will be alive when this house is finally sold ,if we go thru litigation.
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