Estate Question

Lemon Berry Lobster
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Estate Question

Postby Lemon Berry Lobster » Wed Feb 14, 2018 5:44 pm

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dodint
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Estate Question

Postby dodint » Wed Feb 14, 2018 5:46 pm

Your posts are not disgusting or abhorrent in an absolute way like that of a Nazi, which is how you seem to be taking it. I don't think you're evil or even ethically challenged for the most part.

I do think a Nazi opinion is a curiosity worth a cursory look, even if only to try and figure out how they got to be the way they are. So they have some 'value' in that regard.

I'm very familiar with you and what you bring to the table in a political discussion. I believe it to have no merit at all and thus not worthy of reading for any reason.

You're not ideologically like a Nazi at all; you just bring nothing to the table. That's what I meant by you being less worthy of a platform.

I understand that's still upsetting (or not), but I hope you comprehend the difference so you can get over it.

grunthy
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Estate Question

Postby grunthy » Wed Feb 14, 2018 5:52 pm

Dude just stop. I don’t give a flying **** about your half-assed attempt at trying to sound intelligent and thinking you know my opinions and their value.

dodint
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Postby dodint » Wed Feb 14, 2018 5:56 pm

Dude just stop.
Sounds good. Cheers.

:thumb:

willeyeam
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Estate Question

Postby willeyeam » Wed Feb 14, 2018 6:36 pm

Dodint is cool
Alright let's not get carried away ;)

columbia
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Estate Question

Postby columbia » Wed Feb 14, 2018 6:38 pm

DO YOUR JOB!
This needed more attention. 🍺

grunthy
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Estate Question

Postby grunthy » Wed Feb 14, 2018 7:00 pm

DO YOUR JOB!
This needed more attention. 🍺
You have zero leg to stand on what constitutes a ban.

Kaiser
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Estate Question

Postby Kaiser » Wed Feb 14, 2018 7:25 pm

Image

columbia
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Estate Question

Postby columbia » Wed Feb 14, 2018 8:35 pm

DO YOUR JOB!
This needed more attention. 🍺
You have zero leg to stand on what constitutes a ban.



dodint
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Estate Question

Postby dodint » Sat Feb 17, 2018 7:30 pm

To circle back around to my issue.

This website explained it perfectly: http://heirbase.com/dividing_real_estate_among_heirs/

And new information, if anyone cares. Turns out my BILs wife has a friend that rents out houses as side income so they're all hyped up about keeping the house in the family to use as rental income. My wife only wanted it for nostalgia sake, somewhere that when we move away from PA again we can use as a home base of operations/vacation home. We never thought it would seriously generate any rental income as it has a fair bit of flaws, I thought maybe we could AirBnB it to cover the annual property taxes but I never thought it would be a revenue driver.

This house doesn't have a shower, tub only in the one bathroom.
Only has two bedrooms.
Needs a visual remodel of every room except the living room, most everything is from the 60s/70s.
Has well water, it's non-potable because it's polluted by natural gas drilling.
Sits on two acres of cleared yard.
Furnace is probably on its last winter.
Has a two car garage, but it's a dirt floor and manual doors.

Also, my BIL believes that the house is 'definitely worth more than $100k' even though the a really positive estimate would have it at $85k tops. We talked a little about it today and he wants to take the freestanding fireplace out to protect it from the tenants (neither of them can use it in their homes, it would go to storage), and has no interest in hiring a lawn service to cut the acreage. He wants to hide the nice things from the occupants and provide as few services as possible.

To me, anyone that's going to want to rent this house is not going to have the motivation or means to maintain the property to his liking; it probably won't rent for more than $700 a month or so. It's a small house that a family of even reasonable size won't have an interest in. That's why I thought the short term on demand renting model made the most sense.

My BIL sees a business opportunity, my wife wants it for nostalgic reasons. Their motivations are completely at odds. If my BIL successfully rents the property my wife can't drop by and enjoy it anyway. To further complicate things my BIL pays child support, and in PA an inheritance windfall is actionable basis for a child support payment increase due to a case that was decided in 2002 and upheld as recently as 2015. He wants her to help him hide as much of the windfall as possible, so he is not interested in selling the property or being bought out of it, he wants to own it with my wife in joint tenancy and run the business under that arrangement, splitting costs and the meager profits. He is putting forth an emotional plea that exploits a condition where he 'can't' buy the property from my wife and 'can't' allow us to buy it from him, it only works if they share it.

As the financial backer for this I'm not terribly amused. I estimate the house will take between $25k and $50k to be a viable rental. All that to share, what, $500 a month after taxes, insurance, and the construction loans? And that's if it's occupied and the tenant is paying regularly. They're looking at not seeing profits for almost a decade, and then after that the profits are split 50/50.

I'm basically talking out loud, if you're still here my apologies for the long windedness. I'm going to use these ramblings at the backbone for a position paper explaining to my wife the long list of potential negatives of this course of action. I know that probably sounds bonkers to some but she'll appreciate the structured argument in cold print. When she tries to talk to her brother about this it gets emotional and she just does what he says, then later comes to me and beats herself up about not being firm. I think having the situation explained in black and white will help her keep her resolve.

My recommendation is she compels him to buy her out; if he says no then she counters to buy him out; if he says no the estate takes the house to market. I can't see any way that joint tenancy works for these two.

If anyone has anything to add on either side of the issue I'd be happy to hear it.

Freddy Rumsen
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Estate Question

Postby Freddy Rumsen » Sat Feb 17, 2018 8:07 pm

That's something. Read it all and I agree with you. This has disaster and unnecessary legal issues written all over it.

columbia
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Estate Question

Postby columbia » Sat Feb 17, 2018 8:09 pm

I’d still rather talk to a Nazi than grunty - at least I’d learn something about the world.

tifosi77
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Estate Question

Postby tifosi77 » Sat Feb 17, 2018 8:12 pm

I agree, do not be in business partnership with these knuckleheads.

Beveridge
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Estate Question

Postby Beveridge » Sat Feb 17, 2018 10:06 pm

If they are thinking this will make big time rental, can't you use that as a selling point for him to buy you out and at a "discount"? Or is that some of the issue with the child support aspect?

I realize this means your wife has to give it up.

dodint
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Postby dodint » Sat Feb 17, 2018 10:15 pm

The house also doesn't have central air.

dodint
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Postby dodint » Wed Feb 21, 2018 11:56 pm

I got them to a probate attorney in under 48 hours so I think I made my greatest contribution to this mess. My non-professional 'not-legal' advice was pretty spot on and I think it helped set expectations pretty well, and some things I hoped can be done like Right of First Refusal if one buys the other out of the real property is something that can actually be done.

My wife finally told him point blank they probably won't own the property together due to a lack of unified vision for the useage. He played a weird card, saying he wouldn't accept a buyout because it would be 'greedy' and he would rather just give it to her if she was going to insist on it. I don't think it was sincere and he was planting a seed of guilt there but my wife doesn't really care to play the game, so that's cool.

They have four months to decide before they can close it out anyway.

And to tie up the valuation loose end, since they did agree one or the other will end up with the property and it won't see the open market, they can use the county assessment value to settle the estate. Came to $80,600 so I was close there too.

Was fun researching law to actually use, law school itself is so contrived and stupid.

MrKennethTKangaroo
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Estate Question

Postby MrKennethTKangaroo » Thu Feb 22, 2018 6:46 am

Imo Single family homes as investment properties are the absolute worst type of investment in the universe. I’d rather take $20,000 and go play blackjack then use that money to buy a $100,000 with an $80,000 mortgage and then try to rent it out

columbia
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Estate Question

Postby columbia » Thu Feb 22, 2018 9:19 am

RIP

columbia
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Estate Question

Postby columbia » Wed Feb 28, 2018 10:20 pm

I thought you foed me? Why am I a moron? I’m not the one that called the parents an idiot for leaving something to their kids.
You're foe'd, but I'll read some posts not in the PDT. You've demonstrated a complete lack of value though so that's done.

The parent took the lazy way out knowing that it's going to create a problem. Leaving my wife the house and the brother the bank accounts, cars, etc would've been an equitable division of assets and a clean estate to easily probate. Your stupid comment and weak follow-up failed to account for other available assets for division; because you're a simple minded rube incapable of analyzing complex situations who also thinks he's clever with 'gotcha!' one liners that absolutely nobody thinks are smart or funny. You're literally the personification of a Youtube comment come to life, NEXT!

I'm hoping my wife just lets it go and they split everything down the middle. If my MIL really wanted the house to stay in the family she should've taken a course of action to ensure that instead of taking the only course of action with a likely outcome that it won't. This will cause my wife a lot of pain and I'm preparing myself to help her deal with it. The house and land are only worth about $85k, it's possible the executor can draw up a settlement that pleases everyone. I don't know who the executor is; if it's one of her family members this is going to be a **** show. They are all insane people.

Seems you want to make this personal. Rich coming from the guy that was a known piece of **** and moron at GLHS.
High school? :lol: You have issues man, get better.
Two points:

I’ve finally given up and joined the foe bandwagon. I encourage everyone to also choose this recourse.

Trolling someone in a thread, where he was discussing the impending death of his MIL is utterly loathsome; dude is subhuman.

dodint
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Postby dodint » Wed Feb 28, 2018 10:24 pm

RIP
She was locked in the vault with her husband today, probably the second place in the world she would want to be so she is as 'in peace' as she's going to get. Thanks.

Estate is going well. We'll see what happens now that the she has been laid to rest and all that is left is to dispose of her assets.

columbia
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Estate Question

Postby columbia » Wed Feb 28, 2018 10:37 pm

That’s tough and will be forever.
My mom always tears up on the death day (12/26) of her father and she’s 81. :(

dodint
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Estate Question

Postby dodint » Wed Apr 18, 2018 12:51 pm

This is getting really specific, to the point that my wife is just going to ask the estate attorney. But my curiosity is driving me insane so maybe one of you can satisfy it for me.

I'm trying to figure out what happens when one heir wants real property for their portion of an estate settlement AND that value exceeds the liquid assets available to satisfy the other heirs 50% stake in the estate.

There are two heirs.
A house worth $100,000
A car worth $10,000
Liabilities of $30,000 to be paid from the estate at settlement.
That's an equitable distribution of $80,000, so $40,000 for each heir.

One heir buys the other heirs half interest in the house from the estate for $50,000. Thus electing to receive their share of the final disbursement primarily from the other heir's interest in the house. The $50,000 goes into the estate account, not a direct payment to the second heir.
That creates an imbalance where the heir that wants the house is getting more out of the distribution than the other because there is not enough cash on hand to get to $50,000. (Estate account is $50,000-$30,000 in this case)

Does the heir that wants to buy the house have to pay into the estate to bring cash on hand up to a level that both get an equal share?

Real world: I ask because if my BIL wants to buy the house, by my calculations, he's going to have to bring a check to the estate settlement. The check will be fairly substantial because he has already taken physical control of the car, signaling (both via action and verbally when meeting with the lawyer) that he wants to take the car as in kind payment for his part of the estate settlement. If my wife buys the house it will be at much smaller check.

*All values are illustrative, not reflective of our current situation in terms of actual cost.

dodint
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Estate Question

Postby dodint » Wed May 23, 2018 12:21 pm

I still haven't figured out the above issue and it's still driving me insane.

I'm hung up where the purchasing Heir is out $50k to buy the interest in the house and there is only $20k left in the estate account to give to the second heir.

Heir1 pays $50k to get $100k worth of house and no cash.
Heir2 gets $20k cash and no house.

My brain won't wrap around whether that's fair or not. It looks like Heir1 gets $50k value in the end and Heir2 gets $20k value. But Heir2 didn't have to pay $50k to get their value so maybe it is fair? I can't process this for some reason.

On paper, the easy way is for Heir1 to pay $100k for the house and split the estate equitably from there, each getting a $35k payout.
Heir1 pays $100k; walks away with $35k.
Heir2 pays $0; walks away with $35k.
Yeah, that seems wrong too.

WTF am I doing wrong here?

AuthorTony
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Estate Question

Postby AuthorTony » Wed May 23, 2018 12:44 pm

Why would heir 2 be paid out of the estate account? If heir 1 is buying out heir 2's stake in the house, that money should come from heir 1's personal finances, right?

Beveridge
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Estate Question

Postby Beveridge » Wed May 23, 2018 12:48 pm

If the BIL is wanting to keep the car and buy the share of the house, the correct play is to pay your wife $40,000 and then he takes care of the 30,000 in liabilities while keeping the car and house.

It's the same as if he buys your wife out of the house and car (55,000) and then each party pays the liabilities.

Or the BIL brings a check for 110,000 to the closing (purchase price of house and car). Estate pays liabilities, 40,000 to both heirs.

Either way, your BIL in this scenario is going to be paying 70,000.

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