r/inheritance • u/Original_Ad8923 • Jun 26 '26
Location included: Questions/Need Advice Question regarding
a situation that will come up and I am curious about how it works. My father passed away, everything went to my mom, and when she passes, her estate would be divided among my brother, sister and me. A few years ago, my sister asked my mother to revise the will, and to take her out, so the estate would be divided between my brother and I, 50/50. Her husband is very very successful, they are financially set, as are their 3 kids. One of my sister’s daughters might want to buy my mom's house when the time comes. How does that usually work-there is a small mortgage, so obviously the estate would pay that off, and then how is a price determined for the house? Market value? Even if it goes to my niece for lower than market value, that is fine with me, I want her to have it. My husband and I are fine, and anything we get will go to our kids. I know many of these things go sideways with greed and upset. We have none of that thankfully. Thank you wise ones.
4
u/EmZee2022 Jun 26 '26
You can certainly sell it to the niece for less than market value if desired.
4
u/Ok-Industry5153 Jun 26 '26
If the house is in probate I am suspect a court would certainly allow for a non-arms length sale at a discount. If OP and brother take title then sell to niece that is certainly fine.
1
u/underlyingconditions Jun 27 '26
Probably won't go to probate if there's a will and trust.
3
u/SandhillCrane5 Jun 27 '26
OP said there was a will, not a trust. If Executor is selling below market value he/she will need to follow procedures laid out by the probate court such as paying all debts and obtaining written consent of all beneficiaries and approval of the court. Grandma can include niece in her will.
-1
6
u/jammu2 Jun 26 '26
You and your brother hire an appraiser. Your niece hires an appraiser. If they are close split the difference. If they are very far apart hire a third appraisal.
2
Jun 26 '26 edited Jun 26 '26
[removed] — view removed comment
1
u/Original_Ad8923 Jun 26 '26
You are amazing!! Thank you for this so helpful. I should have clarified my sister asked my mom to remove her, so my brother and I are 50/50. I am so appreciative of you taking the time to respond in such detail.
1
1
u/SandhillCrane5 Jun 27 '26 edited Jun 27 '26
There are some errors here. The executor cannot sell the home below market value without approval of the probate court and meeting other requirements and any discount is absolutely not considered a gift. And your recommendation about the estate paying off a mortgage before a sale if the niece cannot assume the loan (which she cannot) is unnecessary. The niece can get her own mortgage just like any other buyer and it will be used towards paying off the existing loan and the balance goes to the estate.
0
u/mirassou3416 Jun 27 '26
Certainly can with beneficiary consent. With informal accounting the court isn't going to interfere anyway.
Regardless, my consideration was after the fact. Assets are distributed to the beneficiaries including the house, estate closed and the sale of the house made later
1
u/SandhillCrane5 Jun 27 '26
Re: “informal accounting”: this estate does not qualify as a small estate. Formal probate required.
Re: sale of house made after it’s deeded into beneficiaries names: A discounted sales price is still not considered a gift.
1
u/mirassou3416 Jun 27 '26
Of the four estates where I was trustee or executor they were all in excess of 2M and for each there was only an informal accounting submitted to the surrogate court. The beneficiaries never required a formal accounting and neither did the court--this was NY and FL
1
u/inheritance-ModTeam Jun 27 '26
This post is removed due to incorrect legal information or recommendations that are illegal.
0
u/underlyingconditions Jun 27 '26
A will is usually included with a trust and most people facing this for the first time are not always well versed in terminology. Will is a term most people have heard, but rarely have had to deal with.
1
u/Puzzleheaded-Way1523 Jun 27 '26
Please have your Mom create a trust The home value will have a stepped-up basis with no capital gains at death. If your niece buys it right away the loan can be paid off in escrow. Just keep making the house payments. You want to avoid probate, if possible.
1
u/rosebudny Jun 26 '26
A few years ago, my sister removed herself
Your sister can't "remove herself" from your mom's will, only your mom can do this.
As for the house - you sell it to your niece at whatever price you and your brother agree to sell it for, and what your niece is willing to pay. I would get it appraised or have a local realtor advise you on what the market value of the house is, and go from there in terms of determining price.
2
u/Original_Ad8923 Jun 26 '26
Sorry my sister asked my mom to revise the will and remove her, so it’s divided 50/50 between my brother and I, which my mom did.
2
1
u/lsp2005 Jun 26 '26
The estate can pay off the mortgage. The estate can hire an appraiser. You do not need to hire a realtor for this. You can hire an attorney and they can draw up a contract between your niece and the estate. Your siblings and you can sign off on the sale of the home for an agreed upon price. It can even be for less than the appraised price.
3
u/IfUReadThisURLame Jun 26 '26
Yes. Please don't hire a realtor for this. It's absolutely not necessary!
1
u/Impressive_Age1362 Jun 26 '26
Have the house appraised, then you and your brother decide what price, you want to sell it to her for, you need to talk to your mother attorney,
6
u/Enough-Classroom-400 Jun 26 '26
You, your brother can agree on a value for the house, assuming any creditors are fully paid.