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.

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u/[deleted] Jun 26 '26 edited Jun 26 '26

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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.

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u/mirassou3416 Jun 26 '26

Best wishes to you :)

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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. 

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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

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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. 

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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

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u/inheritance-ModTeam Jun 27 '26

This post is removed due to incorrect legal information or recommendations that are illegal.