QUESTION
Will the siblings, who are part owners get anything from the sale of the house?
Asked on Jun 29th, 2013 on Estate Planning - Missouri
More details to this question:
My mother in law is in a nursing home and my husband (her son) and his siblings are selling her home. All 5 siblings are part owners of the home along with my mother in law. One sibling has been putting out her own money for repairs that are being made to the home before it goes up for sale.
15 ANSWERS
Commercial Litigation Attorney serving Spokane, WA
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Steven Schneider Attorney at Law, P.S.
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If they are truly joint owners, all could get a share after the mortgage, taxes and other costs are paid. If the sibling wants to be reimbursed by the estate for repairs, she can make a claim for that to be paid before proceeds are split in closing.
Answered on Jul 10th, 2013 at 11:18 PM
First if she is in a nursing home and owned real estate, the state likely has a lien on the property. If your mother in law conveyed an interest to her children less then 5-years before entering the nursing home, then all of the interest in the real estate may go to the state. Get thee a lawyer.
Answered on Jul 05th, 2013 at 4:13 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Yes, depending upon the sale proceeds as divided at escrow according to the interest each sibling holds, , less the expenses paid by one sibling, if all sibling agree.
Answered on Jul 05th, 2013 at 4:15 AM
Yes, all owners will share in the net proceeds equally. The expenses of the transaction including fixing up the property should be paid before the split of profits.
Answered on Jul 03rd, 2013 at 2:47 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Someone who has advanced funds for repairs should be entitled to reimbursement, upon sale of the property. That is only fair. Beyond that, it is difficult to respond without more information.
Answered on Jul 02nd, 2013 at 11:36 PM
Taxation Law Attorney serving Glendale, CA
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Irsfeld, Irsfeld & Younger LLP
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Presumably yes. If, for example, each own 12 %, wouldn't you expect that each would get 12% of the net proceeds?
Answered on Jul 02nd, 2013 at 7:56 PM
She should not be paying more money than the appreciation caused by the repairs she makes. If she does not have an agreement with the others that she will be reimbursed then she has made a gift to them of their "share" of the value of the repairs.
Answered on Jul 02nd, 2013 at 5:27 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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Why on earth are all the kids co-owners? Do any of them (apart from the one paying for repairs) have any actual investment in the house? When was the co-ownership created? Is Mom going to need to qualify for assistance from the Medicaid program? All of these questions, and probably more, need to be answered before your basic question can be answered.
Answered on Jul 02nd, 2013 at 5:08 PM
Thomas Edward Gates
If they are part owners, then they will share, by percentage, in the proceeds after paying for the maintenance getting the home ready to sell.
Answered on Jul 02nd, 2013 at 12:57 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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It depends on when she transferred ownership to her and her children and if she needs the money for her care.
Answered on Jul 02nd, 2013 at 10:59 AM
The sibling who has been paying for the repairs should be reimbursed prior to the money being split, unless it was a gift.
Answered on Jul 02nd, 2013 at 9:58 AM
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It depends. If she is on Medicaid and no consideration was paid by the siblings then it may be an issue with her benefits. I urge you r husband and/or the siblings to speak with an elder law attorney where your mother-in-law lives to make sure the transaction is done correctly and does not adversely impact anyone. With regard to the repairs, those should be documented and documentation retained and ought to be reimbursed through escrow, to the extent documented, receipts, contracts, etc., if possible. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Jul 02nd, 2013 at 9:42 AM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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It sounds like they each may get 1/6. They may be obliged to pay back the one sister first.
Answered on Jul 02nd, 2013 at 9:29 AM
Once the house is sold, expenses such as the realtor's fees and expenses, filing charges, inspections, repairs, and reimbursing the sibling who has been paying for renovations will be deducted from the selling price. If there's anything left, it will be divided between the owners according to the percentage of the property each owns.
Answered on Jul 02nd, 2013 at 9:25 AM
Bankruptcy Attorney serving Florissant, MO
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Law Offices of Thomas Corcoran Phipps
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If they are all equal owners, any gain should be divided equally.
Answered on Jul 02nd, 2013 at 9:10 AM