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    coownerxfour's Avatar
    coownerxfour Posts: 1, Reputation: 1
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    #1

    Jan 2, 2009, 11:01 PM
    How can coowned inherited property be kept in the family when an in-law wants cash?
    We four sisters inherited our dad's property. It was in trust in my dad's name. After he died, the trust transfer deed was placed in all four of our names.
    First question: Is the house still in trust or now out of trust and owned by all four of us? The trust states that the trust is terminated when the estate is equally distributed.

    Next: All of us want to keep the home and property in the family. However, the husband of one sister wants her to demand her quarter interest be paid to her in cash. IE: He wants us to buy her out. I guess he thought we had the money to do this, but none of us do, nor do we have jobs that allow us to save that kind of money or qualify for a loan of that amount. When my sister found out we would have to sell the house to get the money, she said, "No, no! Don't sell the house!"The problem is she is very ill and may soon be manipulated to make her husband be her power of attorney.
    Second question: Should/When he become(s) her power of attorney, could he demand we sell the house? Is there a legal way to get her wishes (to keep the house in the family) documented while she is still mentally competent? If so, would this prevent him from demanding the sale of our home so he can get the cash?

    Two of us are now living at the house and have been paying all expenses (taxes, insurance, upkeep, repairs, etc.) for the past eleven years. The other two sisters have contributed nothing to help with expenses, and have lived elsewhere. The one whose husband wants us to buy her out is one of the sisters who has contributed nothing.
    Third question:Would this legally affect how much she is owed should we ultimately have to buy her out or provide a cash amount for her share after selling the house?

    Are there other options for us?

    Thank you for any advice, guidance, suggestions you can provide.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Jan 3, 2009, 05:51 AM
    Hello co:

    Since the trust dissolved, you are technically a partnership.

    One partner cannot force the other three to sell. That's just so, unless the four of you have a partnership agreement giving ONE partner the ability for force a sale... And, you don't have that...

    Even if they got REAL mad and had POWER of ATTORNEY, it doesn't change anything. They can't FORCE you to sell.

    Now comes the harder part. The TWO who are living in the house should be paying rent to the partnership, and the partnership should be paying the upkeep on the house. If there's anything left over, it should be split 4 ways. There should be LOTS left over since there's no mortgage.

    Would it effect how much she is owed when the house is sold?? Not really. One cannot go back in time to create a contract with people that wasn't there in the first place. So NO, she wouldn't be eligible for BACK payment of rent...

    However, this inequitable situation might just be the very thing that is pissing your sister off. She should be MAKING money - not getting billed. I'd get it resolved.

    excon
    propertytax's Avatar
    propertytax Posts: 1, Reputation: 1
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    #3

    May 10, 2012, 06:20 PM
    My parents left their house to their 5 children. I (one of the 5) would like to buy out the other 4. Can I keep the property tax basis in the state of California under Prop 13? Or do I have to pay property taxes based on the buyout price? The house is currently paying taxes on about $250,000 and the buyout price in $850,000. Thank you.

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