Skip to main content

"RMO Lawyers' Guide on Equitably Dividing Inherited Property Among Siblings"


-- When people pass away, they often leave behind bank accounts, investments accounts, retirement accounts, real property (homes, rental properties, etc.) and other personal assets as inheritance for their survivors. But how do two or more siblings divide up inherited real estate and other property? This question has caused countless family quarrels. READ MORE: However, you can take measures to ensure an equitable distribution of property between your children when you pass on, and your surviving heirs can take steps to minimize disputes and allow everyone to benefit from the legacy intended for them. How Do You Split Inheritance Fairly? There is no single best answer on what constitutes a fair split of an inheritance. Every family circumstance is different. But let’s start with an extremely straightforward example. Imagine mom passes and is survived by her twin daughters. Neither daughter had borrowed money or otherwise took from mom while she was alive, and gifts mom showered them with during their life have largely been the same. At her death, mom has $500,000 in the bank and the family home that also is worth $500,000. In this case, mom might think that the easiest and fairest estate plan would be to leave one daughter her bank account (either via will, trust or joint account ownership) and one daughter sole possession of the family home (either via will, trust, transfer on death deed, or joint title ownership). Or, mom may think leaving each daughter half of the bank account and half of the house would be best (again using the same estate planning tools). However, even simple scenarios like this one can cause kerfuffles. In the first scenario, one daughter gets cash, while the other daughter gets the family home. If they both have an attachment to the home, the daughter who receives the cash might be upset, and if the daughter who inherits the home needs to sell it she will receive less because selling a home comes with significant sale costs. In the second scenario, leaving both daughters owning the home together too may not work if they don’t get along or if they simply can’t agree on what should be done with the property (Should they live there? Should one of them live there? Should it be rented, sold, etc.). You can see how this can devolve. Can Heirs’ Property Be Divided? Heirs’ property is a term that is sometimes used to refer to real estate and land inherited when someone passes without an estate plan. Because there is no will, trust or deed to dictate to whom the property should be distributed, heirs’ property automatically will be divided among and distributed to the deceased’s next-of-kin according to state law. For instance, if the deceased was a single man with three sons, each of the three sons would receive a one-third interest in their father’s real estate. Though laws regarding heirs’ property vary from state to state, generally, any of the three sons would have the right to live on, work, and, through other processes, force the sale of the land (take a look at our materials on partition actions for more information on selling an inherited property). For the past many centuries, generally land inheritances generally consisted of working farms with acreage, which often were left to the oldest child who was taking over the farming operations, or the acreage would just be split between the kids. But what happens today, when three sons inherit a one-third share of the family house on a half-acre of otherwise indivisible piece of land? The first question regarding the heirs’ property is who owns title to the house. The short answer is they all do, and if the decedent still had a mortgage, the kids would inherit the debt and need to continue making payments. They will need to agree on who will pay the mortgage, who will pay the property taxes, who will pay the utilities, etc. Preventing the house from being foreclosed upon is in all the siblings’ interest, even if none of them plan to live in or keep the house. And if they can’t agree on what to do with the house, then any of them can force a sale, even if the others do not want to sell. READ MORE: Have questions? We’re happy to discuss. Call (424) 320-9444 or email hello@rmolawyers.com About RMO, LLP RMO LLP serves clients in Los Angeles, Santa Monica, Ventura, Santa Barbara, San Francisco, Orange County, San Diego, Kansas City, Miami, and communities throughout California, Florida, Missouri, and Kansas. Our founder, Scott E. Rahn, has been named “Top 100 – Trust and Estate Litigation” by SuperLawyers, Trusts and Estates Litigator of the Year, and Best Lawyers in America for Litigation – Trusts and Estates. For a free consultation, call (424) 320-9444 or visit: ...(read more)



LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Inheriting a property can be a daunting task, especially when it has to be divided amongst siblings. The division of an inherited property is not just about sharing the assets, but it also involves emotions, attachments, and memories. Therefore, it’s important to approach the situation with empathy, understanding and with a priority to stay fair to all parties. In this article, let's discuss how to divide inherited property between siblings in a way that everyone is satisfied. 1. Determine the value of the Estate The first step is to determine the value of the estate. The estate’s value will determine the number of shares each sibling gets. Therefore, it’s important to calculate the total value of the estate accurately. 2. Communicate with your siblings Communication is the key to everything. Before you start dividing the estate, it’s imperative to communicate with your siblings to discuss how to divide it fairly. This will help in ensuring that everyone's needs and expectations are met. 3. Decide on the division After communicating with your siblings, it’s time to decide on the distribution. One way of doing this is to divide the property into equal shares. This may not always be the fairest option, especially when one sibling wants to keep the family home to continue making memories with their children. It’s important to have an open mind and consider all options before making final decisions. 4. Hire a Lawyer and Create a plan Once a decision is made, it’s important to hire a lawyer to help draft a plan. The plan should outline how the property will be divided, how the expenses will be handled, and how any taxes will be paid. 5. Make sure loans are paid Before dividing the property, make sure all debts are paid, including mortgages and outstanding taxes. 6. Have the property appraised It is important to have an appraiser determine the value of the inheritance. This will help ensure that everyone receives a fair share. In conclusion, dividing an inherited property can be a sensitive and emotional process, but with the help of a lawyer and proper communication with your siblings, it can be a fair and trouble-free process. RMO lawyers are available to assist in this process to ensure everything is done legally and with care. https://inflationprotection.org/rmo-lawyers-guide-on-equitably-dividing-inherited-property-among-siblings/?feed_id=85583&_unique_id=6430a7a391117 #Inflation #Retirement #GoldIRA #Wealth #Investing #divideinheritance #estateattorney #inheritedproperty #ProbateLaw #trustattorney #trustlawyer #trustlitigation #InheritedIRA #divideinheritance #estateattorney #inheritedproperty #ProbateLaw #trustattorney #trustlawyer #trustlitigation

Comments

Popular posts from this blog

"Is Birch Gold Group a Reliable Choice for Your 2023 Gold IRA Investments?" - A Quick Review #shorts

In this Birch Gold Group review video, I go over what makes this Gold IRA company unique, the pros and cons, their fees, minimums, and much more. Get their free guide here: 👉 FREE Resources: ➜ Gold IRA Company Reviews: Birch Gold Group boasts high ratings from consumer advocate groups. With an A-plus rating from the Better Business Bureau, a triple-A rating from the Business Consumer Alliance, and high marks from Trust Link, Trustpilot, and Google Business, Birch Gold is a top choice to trust your hard-earned retirement savings. Birch Gold Group’s low initial investment minimum is another edge it has over its competitors whose minimums can range from $25,000 to $50,000. A beginning $10,000 minimum investment is all that is required to start a GOLD IRA with Birch which is advantageous for first-time investors. Spanning nearly two decades, Birch Gold Group’s mission and philosophy focus on a commitment to understanding your needs and finding the right fit for you. Their

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom

Should I Rollover My 401k to an IRA? YES! #shorts #retirement #financialfreedom Should I Rollover My 401k to anIRA 🤔 || 401k to IRA Rollover Pro's & Con's In this video, I want to talk about rolling over your 401k to an IRA Rollover and if that makes sense for your retirement planning . I want to look at the pro's to rolling over a 401k and also the con's to rolling over a 401k. When you should rollover your 401k to an IRA and when you should NOT rollover your 401k to an IRA. Let's talk about when you should NOT rollover your 401k to an IRA: 1. You are still working and are under the age of 59.5 2. You are 55 and considering retirement (Rule 55) 3. Increased creditor protection in a 401k 4. 401k's offer loans--IRA's do not offer loans Why you SHOULD rollover your 401k to an IRA 1. More investment choices in IRA over 401k 2. Lower investment fees 3. Convert IRA to Roth IRA (Roth IRA Conversion) 4. Consolidation from multiple 401k'