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Its Thursday night and my sister has had the appraisal report since Monday. The certified appraiser's market value for the house was $300,000. The property next door (same condo style) sold for $303,000 in June 2018, however that condo didn't have an updated kitchen like my mother's did (new appliances, backsplash, etc). I am willing to accept $300,000. My sister has not been in contact. I left a VM for our estate attorney late this afternoon but have not heard back. I'm concerned my sister is not willing to pay market value and will offer a lowball buyout. I am not interested in accepting any offer under $300,000 but I'm concerned that if the buyout falls through and we put it on the market, she will stonewall any offer that comes in to retaliate.
If we weren't co-executors, she wouldnt have that veto power. I'm worried she has something else up her sleeve since every time, thus far, that there was silence--her and her husband were strategizing their next move. Meanwhile, her daughter's belongings remain there.
What is most frustrating is we could have put the condo on the market 2 months ago and possible had a buyer by now without these shenanigans.
I hope to hear something by the weekend. There is no reason for her to not direct the lawyer to proceed with the buyout now. She wasted enough time.
Have you considered that if you have to list it and sell with a realtor, you’ll have to pay a commission and your proceeds will be reduced by that and other closing costs? Might be worth accepting a little less than full price from your sister.
Well, I guess it would depend on how much less than market value. If the home sold on the market for $300,000, similar to the one next door which sold at $303,000, the 6% commission would be $18,000. Splitting it would mean less $9000 for a buyout of $291,000.
I'm more inclined to hold her to market value since that is what we paid a certified appraiser to determine.
Why would I give her a deal except to be done with this mess. If only it would end there but her history is to continue to push for more, more more. I'm still waiting for her to contact me and our attorney with her response to the appraisal report. I don't have a good feeling about her silence.
Well, I guess it would depend on how much less than market value. If the home sold on the market for $300,000, similar to the one next door which sold at $303,000, the 6% commission would be $18,000. Splitting it would mean less $9000 for a buyout of $291,000.
I'm more inclined to hold her to market value since that is what we paid a certified appraiser to determine.
Why would I give her a deal except to be done with this mess. If only it would end there but her history is to continue to push for more, more more. I'm still waiting for her to contact me and our attorney with her response to the appraisal report. I don't have a good feeling about her silence.
Don't lose sight of the bigger picture. The payoff is still probably going to be more than $200,000. Money you didn't even have before. Is quibbling over a couple thousand of it worth the aggravation?
No, I won't quibble over a few dollars. I'm hoping this proceeds without any further disagreement or bad behavior on the part of my sister. Our lawyer emailed us yesterday saying he received our forwarded copies of the FMV appraisals and he was preparing paperwork to proceed. Since my sister forwarded the appraisal to him without any comments regarding the amount I'm assuming that we're on the same page.
I sincerely hope so. I just want this settled.
No, I won't quibble over a few dollars. I'm hoping this proceeds without any further disagreement or bad behavior on the part of my sister. Our lawyer emailed us yesterday saying he received our forwarded copies of the FMV appraisals and he was preparing paperwork to proceed. Since my sister forwarded the appraisal to him without any comments regarding the amount I'm assuming that we're on the same page.
I sincerely hope so. I just want this settled.
Well the lawyer needs to know if she has accepted the appraisal. What paperwork is he preparing? You need to know exactly where everyone is right now. Conference call with the lawyer or email and cc sister if you don't want to talk to either of them separately -"Are we working on buyout and deed transfer based on appraisal and how long will it take to complete the transaction?"
I received the formal appraisal report by email today and the assessment value is acceptable to me.
I'm waiting to see if my sister is agreeable to the buyout at this price. If so, we can move forward.
The lawyer agreed to create a liability waver for the stored items to cover my interest--my sister will sign that in the interim. She won't move the furniture and continues to report her daughter isn't living there. I'm not going to escalate the situation. I just want to be done with this.
After the buyout is processed and the remainder of the paperwork is complete, individual trusts will be funded with our proceeds. Its at that time when we will need to sign paperwork to remove each other as co-trustees. as long as she doesn't have more foolishness up her sleeve, we can settle things in a few months, hopefully. I will absolutely demand that my mom's taxes (2018 and estate tax return) be completed and paid for out of the estate money as well as lawyers fees be paid. I won't be left holding the bag.
You mentioned individual trusts will be created. Is this required under the will? If not why not just distribute the assets and save the expense of legal and accounting work that goes with a trust.
The tax returns would be signed off by you and your sister as part of closing out the estate.
I can see a state (if it has an income tax) and a Federal income tax return for your mother.
If the estate earned money it will probably have a state and Federal income tax return.
The tax returns would be signed off by you and your sister as part of closing out the estate.
I can see a state (if it has an income tax) and a Federal income tax return for your mother.
If the estate earned money it will probably have a state and Federal income tax return.
Probably no state and Federal estate tax return.
Yes. When I was executor I hired an accountant to prepare the state and federal income tax returns for my parent's last year and the estate's for 2 years (it will have its own tax ID number...has its own income while it exists). The assets had to transfer from parent to estate during probate, and because there were lots of little ones, that process wasn't completed by the end of the initial tax year (thanks to stalling, waffling, and endless paper trails imposed by various investment companies and banks).
I also had the accountant prepare my tax return for the years I was executor, but I paid for that myself. Very glad I did, as keeping asset transfer dates and incomes for all three entities separated was complicated. The cost of tax preparation was not that high and well worth it. I charged tax prep fees to the estate. No one argued about that. Unless the estate is worth more than several million (the limit depends on the state) there won't be estate taxes due, so probably won't need estate tax filings prepared.
Last edited by Parnassia; 12-23-2018 at 12:40 AM..
Well the lawyer needs to know if she has accepted the appraisal. What paperwork is he preparing? You need to know exactly where everyone is right now. Conference call with the lawyer or email and cc sister if you don't want to talk to either of them separately -"Are we working on buyout and deed transfer based on appraisal and how long will it take to complete the transaction?"
Hi TamaJane:
I did email the lawyer Friday asking him about the paperwork and if the appraisal amount ($300,000) was what the buyout was going to be based on. Additionally, I asked him if the liability waiver covering my niece's furniture/belongings stored in the home since 11/23/18 was prepared and signed yet.
I havent heard back from him supposedly becuase of the holiday.
I copied my sister into that email also.
No reply from her either and she continued her non-communication with me--skipping my birthday earlier in December and not contacting me in any way on Christmas. First holiday after my mom's passing and she is behaving this way. Its really hard to deal with but I'll be happy when I can move on.
Clearly, money is more important than family to her.
Thanks for your replies/comments.
OP, is there an update on this situation? Hope things are going ok.
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Buyout at less than market value?
