Dividing the inheritance
In an ideal world, siblings love, support and encourage each other. However, many factors come into play that disrupt the balance of this relationship. One such factor is the issue of home inheritance.
When you and your siblings inherit the home but do not share the opinion of selling real estate in probate, what must be done? How do you divide an inheritance when one of your siblings disagrees on selling?
The possible solutions to the issue of home inheritance
The issue of home inheritance can be solved when all parties involved are willing to meet and settle to an agreement. If one of the parties involved is adamant about selling, try to explore other options first before taking this matter to court.
What other options are available? Take a look at the following suggestions which may help resolve your inheritance issue.
- The Buyout. When one of your siblings would rather keep the home and refuse to sell it, a good solution is to allow him or her to buy out the home from you and/or your other siblings.
If there are four siblings, then the ownership of the home is divided into four. The sibling who would like to keep the house can finance the 75% home appraised value and buy the ownership out from you and your other siblings, then transfer the ownership to his or her name.
- The Internal Arrangement. Producing the money to buy other siblings out is not easy, especially if the property in question has a high market value. This leads to the second option, the internal arrangement.
This arrangement is created so that everyone’s desires are considered. However, unlike the buyout where one sibling would have to produce the other’s share of the home’s market appraisal and pay in full, in an internal arrangement, he or she creates an arrangement with you and your other siblings that you will each be paid monthly installments (which include the home’s interests) until everybody has been bought out.
To be fair, your sibling also needs to sign a deed of trust to the home. This would give you and your other siblings the right to foreclose and sell the home if he or she fails to keep up his/her part of the agreement and become delinquent in paying. To make it binding and more formal, put it in writing.
3. Rent it out. Another option you can explore is to have the house rented. When your sibling intends to keep the property but not use it as a primary home, and you want to sell it because you already have your own place, a good option to consider is renting it out. You can then split the rental fee, so you get a monthly allowance from the home, and the home stays in the family which is what your sibling wants.
- Seek legal counsel. When you’ve explored all options, and your sibling still refuses to cooperate, then it may be time to seek legal counsel regarding the matter. This should be the last option and must be explored only when you’ve exhausted all means to reach a common and binding agreement.
Taking an inheritance issue to court is expensive, and can cause much strife and division in the family.
If you are inheriting a house with siblings, make sure that you don’t let money matters be the source of contention in your family. Talk with all your siblings and help each other understand everyone else’s opinion. There’s always a viable solution on hand when people communicate well and are willing to come to an agreement.