QUESTION
Do I have the right to ask for the money I spent upgrading the house when the estate is sold?
Asked on Oct 04th, 2013 on Estate Planning - Michigan
More details to this question:
In 2003, I had a 30 x 36 pole barn built on my parents property plus upgraded their home with a new roof, vinyl siding, and new windows and doors. Their will is now being challenged and I have asked for 1/2 of a $40,000 estimate I received to make these improvements today. My 4 siblings know I paid for these improvements. Do I have the right to ask for this when the estate is sold?
10 ANSWERS
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Really tough question. Did you have any written agreement with your parents when you did the improvements? The work you did to their home (it can be argued) was gratuitous, done out of your love for them. If you wanted to be reimbursed, there should have been a written agreement, and they could have put reimbursement for you into their will. If there isn't, and they didn't, then, if I were advising the personal representative I would say you voluntarily improved the parents' property. If we couldn't get the agreement of all the siblings to compensate you, then I'd say no reimbursement.
Answered on Oct 08th, 2013 at 3:50 AM
Unfortunately, unless you made it clear to your parents and siblings that you did the work only because you expected to be paid back it would be considered a gift. Even if you made that clear, you have problems in getting it back. I had the same thing happen to me as to my parents' estates.
Answered on Oct 07th, 2013 at 3:44 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Sure, you can ask. Whether or not you would be entitled to it is a more complicated answer. If your siblings do not object, this should not be a problem. If they do object, the judge will look at a number of factors, including the amount that these renovations increased the value of the property. The judge may also investigate as to what your understanding and intent was with your parents. For example (Was the barn built to allow you to store your property?)
Answered on Oct 04th, 2013 at 4:28 PM
3 Awards
You can ask you will probably be rejected unless your parents signed something back in 2003 to state they would reimburse you for all or a part of the expense when you paid for the upgrades.
Answered on Oct 04th, 2013 at 1:33 PM
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You can ask, but unless there was a contract that you would be reimbursed for this out of the estate, it may be difficult to get. If there is mediation in the contest, you may be able to use it to negotiate.
Answered on Oct 04th, 2013 at 1:21 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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You can make a creditors claim to be filed in the estate proceeding to be accepted or rejected by the administrator/executor; if rejected, then a hearing will be held to determine the validity and the value of the claim.
Answered on Oct 04th, 2013 at 12:08 PM
Thomas Edward Gates
You can submit a creditor's claim, but you are not due anything.
Answered on Oct 04th, 2013 at 11:35 AM
It depends on the law of your state. Some states would consider your expenditures as a gift which would not lead to compensation or reimbursement. Other states would allow you reimbursement from the sale of the house. You need to contact a probate and estates lawyer.
Answered on Oct 04th, 2013 at 11:35 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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It depends. You made the improvements 10 years ago. Was there ever an understanding that you would be paid for them? Was it in writing? Or was this a gift because you loved your parents. If the latter, no, you are not entitled. If the former, you need to gather any proof you have to substantiate that you were supposed to be paid for the improvements.
Answered on Oct 04th, 2013 at 9:55 AM
Divorce Attorney serving Bingham Farms, MI
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Gottlieb & Goren, P.C.
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Yes, if you can prove your parents intended to repay you.
Answered on Oct 04th, 2013 at 9:12 AM