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Old 07-04-2020, 12:41 PM   #41
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You seem to value a dovish end to all this klucich and that is very understandable. Why not give give your sister a chance to offer some kind of deal she'd consider beneficial to herself as a starting point? Tell her you have to have the cash, no compromise or delay possible there, but that you appreciate what she has done with the house over the ten years and would look at an offer that takes that into consideration. Tell her if she doesn't want to do that, you'll need to "turn it over to the pros" to work things out.

No response from her = turn it over to the pros.

Excessively low ball offer from her = negotiate if possible. Otherwise, see above.

Reasonable offer from her = happy days.
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Old 07-04-2020, 12:45 PM   #42
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....I wonder what the state regulators might say about her CPA license under this situation? ...
As a former CPA for over 30 years I would say nothing... from what the OP has relayed, she hasn't done anything that is a violation in her duties as a CPA. Now if separately she is convicted of some financial malfeasance, then her license would be in peril.
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Old 07-04-2020, 12:45 PM   #43
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... I just tell her to get the house appraised and I want to be bought out of my 1/2, period.
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OK guys I am going to send some of your responses to my brother. I know he isn't going to want to cause a rift, so I am going to ask now if there is any harm in just asking to be bought out or do you think we really need to get lawyers involved right off the get go?
You two can continue to not cause a rift. Just keep acting like doormats and letting her take advantage of and possibly destrory your assets. No problem. She will be very happy.

As far as proceeding without lawyers you can certainly do that. Based on the history you have reported, this approach will almost certainly yield nothing. But you can try it; act like a doormats for another few months. Then hire the junkyard dog and get the deal done.
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Old 07-04-2020, 01:49 PM   #44
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As a former CPA for over 30 years I would say nothing... from what the OP has relayed, she hasn't done anything that is a violation in her duties as a CPA. Now if separately she is convicted of some financial malfeasance, then her license would be in peril.
Understood. If a malfeasance lawsuit would be required to settle the house, it could affect sister's CPA license, no? IANAL. When dealing with sister and not making any progress, the mention of such a lawsuit and the possible ramification to sister's income could be a good bargaining chip IMO.
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Old 07-04-2020, 01:58 PM   #45
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You two can continue to not cause a rift. Just keep acting like doormats and letting her take advantage of and possibly destrory your assets. No problem. She will be very happy.

As far as proceeding without lawyers you can certainly do that. Based on the history you have reported, this approach will almost certainly yield nothing. But you can try it; act like a doormats for another few months. Then hire the junkyard dog and get the deal done.
Thanks, waiting on brother's response. I may hav scared him enough that he may want a lawyer to make sure he is complete clear of this. He has said before he just wants to donate his share and let the remaining two split that and work it out between us. See below:

I don't know the answers to most of the questions below and have not been involved in any transactions.

Re 13) I didn't sign the LLC, but would gladly sign over my portion, whatever it might be, to whoever is interested. What do I need to do to remove myself from the estate and let the two of you work things out? Just let me know what you would like me to do.

Is there an easy way for me to get untangled from the estate and have the two of you work things out between yourselves, including splitting up any assets that someone might have assigned to me. I would prefer to keep the ownership of the house in the family, but don't mind if that doesn't happen being that I am not a paying partner, nor am I interested in compensation for anything I might have inadvertently inherited, just tell me where to sign to give back my portion.
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Old 07-04-2020, 02:27 PM   #46
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Thanks, waiting on brother's response. I may hav scared him enough that he may want a lawyer to make sure he is complete clear of this. He has said before he just wants to donate his share and let the remaining two split that and work it out between us. See below:

I don't know the answers to most of the questions below and have not been involved in any transactions.

Re 13) I didn't sign the LLC, but would gladly sign over my portion, whatever it might be, to whoever is interested. What do I need to do to remove myself from the estate and let the two of you work things out? Just let me know what you would like me to do.

Is there an easy way for me to get untangled from the estate and have the two of you work things out between yourselves, including splitting up any assets that someone might have assigned to me. I would prefer to keep the ownership of the house in the family, but don't mind if that doesn't happen being that I am not a paying partner, nor am I interested in compensation for anything I might have inadvertently inherited, just tell me where to sign to give back my portion.
OP - so your brother's willingness to walk away so fast is a big DANGER to you.

Whoever gets his share, controls the LLC. Meaning it (the LLC) can do whatever it wants like let the nephew live there forever for free.

If brother really didn't sign the LLC, then only 2 of you control the LLC.
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Old 07-04-2020, 02:36 PM   #47
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... If brother really didn't sign the LLC, then only 2 of you control the LLC.
Well, it may also be the case that the house really isn't in the LLC at all or only 2/3 of the house is in the LLC. Hence my suggestion that the OP check to see how the property is titled. The fun continues ...
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Old 07-04-2020, 02:50 PM   #48
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Understood. If a malfeasance lawsuit would be required to settle the house, it could affect sister's CPA license, no? IANAL. When dealing with sister and not making any progress, the mention of such a lawsuit and the possible ramification to sister's income could be a good bargaining chip IMO.
I don't think any civil action would affect the license, criminal is a whole different story.
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Old 07-04-2020, 02:56 PM   #49
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Houston, we have a problem.

Brother says that he didn't sign the LLC. CPA/sister says that he did.
They can't both be right, and I'm betting on the brother.

Time for a lawyer.

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.... Re 13) I didn't sign the LLC, but would gladly sign over my portion...
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>13) I understand that since (brother) did not sign the LLC papers, there is no LLC, and the last I heard the only option you had was to open a checking account in your name to use for the estate income and expenses. Do you have a brief summary of the monthly income and expenses of that account? I do not need detailed. Later. The llc is a legal entity and the house is in it. (Brother) signed the llc legal papers allowing it to be formed. He didn't sign the member agreement between the three of us allowing me to do some things on behalf of the llc. I opened a checking account in my name to use only for llc business. Rent money goes in there and llc expenses are paid out of there. I have paid some out of my own account, but have kept track well. With no agreement the pud (Electric) is still in moms name.no big deal. I have been able to have most repairs done without the agreement.
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Old 07-04-2020, 02:57 PM   #50
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Sweat equity and 10 years of appreciation? Seattle area.
In the Seattle are I doubt even a tear-down ever dropped below $100k.
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Old 07-04-2020, 04:18 PM   #51
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Certainly a copy of the LLC Certificate of Formation would be in order IMO. Specifically, the Washington LLC Operating Agreement (I would bet there isn't any), the last x years of financial report and IRS form 1065. Sister (a CPA, even if not the CPA hired by the LLC) must know these things are required and should have copies of them. I wouldn't be surprised to find could turn out that sister is the sole owner of the LLC.

It seems like a lot of disconnects and missing info here. It sounds a lot like my MIL & FIL's Trusts and Wills that we just went through to straighten out! Be very cautious to dot your I's and cross the T's. Do not take anything sister says as fact. Require documentation of everything from Sis or from government sites, and keep copies of them for future use. Anything you can get on your own is just that much a lawyer will not charge you time for, and quicker to get some resolution.
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Old 07-04-2020, 08:27 PM   #52
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Since it appears that this property is in the Seattle area, I would encourage the OP to go on the King Co Assessor web page and check how the property is listed. (you will need at least the street address). Personally I am not betting there is actually a LLC, If it has been moved to a LLC, it will show on the Assessor records as such. Since King Co is pretty aggressive on keeping property values at market, I would also check the value being used by the assessor
If the LLC does not appear as owner of record, I would visit WA's Sec of State where all LLC are registered.https://www.sos.wa.gov/ and confirm the LLC exists. The task is much easier if you have the formal name of the LLC supposedly registered. If you find the LLC, see how it is registered in terms of ownership and who is listed as Managing Partner/Managing Director Also confirms dates of origination and status.
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Old 07-04-2020, 08:42 PM   #53
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^^^^ good advice.
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Old 07-04-2020, 10:31 PM   #54
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You mentioned the utilities are in the deceased mother's name. That sets off a red flag in my mind if you were unaware of this before. I would check the county's tax records to see who's name is on it and I'd do the same with the title for the house. I say this because my neighbor, after paying out for his wife's Alzheimer's care was left with little assets and was going to loose his house, unable to keep up with the payments, so his daughter offered to buy it out and let him live there rent free. This was in order to keep him from getting a reverse mortgage on the property. He explained to her that the house and her inheritance of said home was going to be liquidated in order to keep a roof over his head. He thought they had an agreement until he discovered she already changed the title over to her name. God only knows how she did this without his signature though, but it sure disappointed him she did that. I'm only the neighbor, but I spend a lot of time with him, he's 83 and I'm 63, and help him out a lot with the home's repairs and now with the virus, I do all his grocery shopping so he doesn't need to go out.

Verify what you think you know regarding your right to the home and your fair share. It can't hurt and it might save you any surprises later. Also, what happens to your part if you precede your sister and/or brother in death? Who gets your share? Don't assume, get an estate attorney and have him ensure you have the asset and make sure your will reflects your wishes to what happens to those.
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Old 07-04-2020, 10:39 PM   #55
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OMG you are so funny. Is there any harm to just cut ties and exit stage right? I mean that I just tell her to get the house appraised and I want to be bought out of my 1/2, period.
There is actually nothing funny about the situation and IMO you are in denial about your sister and what she is up to. How many times do you have to read the word "Later" to realize it translates to F off...
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Old 07-04-2020, 10:41 PM   #56
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If I get the gist, the home is owned in an LLC, presumably formed by OP, sister and brother. Brother did not sign anything agreeing to have sister manage the LLC. Sister opened a checking account in her name. Nephew is/was paying sporadically to sister's bank account. Sister hired a rehab guy who skipped out with 30K. Sister paid for and added labor to partially finish the unfinished rehab. Rent, when it was paid, went to taxes and to pay her back for her rehab costs.

No LLC bank account. The home is the only asset owned by the LLC. No money goes into the LLC. No money goes out of the LLC. Sister is acting as the home is hers. Giving preferential treatment to nephew.

I wonder what the state regulators might say about her CPA license under this situation?
I'm not suggesting you follow through with reporting this situation. It might help you to know this may be an option in case you do not find a mutual agreeable solution. Having leverage can be a great mediator. In the mean time, I hope your Umbrella Insurance is paid up.
You do realize this is the sister's account of what has been going on? It's not worth a hoot.
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Old 07-04-2020, 10:42 PM   #57
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It probably wouldn't hurt to be asked to be bought out and see what she says.
The answer will be "I'll get back to you LATER"
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Old 07-04-2020, 11:41 PM   #58
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And the response is that "My lawyer will call you sooner rather than later".
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Old 07-05-2020, 12:24 AM   #59
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Well you're not giving me any feedback from your end. I don't want to push anyone to do anything they don't want to do. No hurry.
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What time frame would you want that to happen?
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This is your money question. I would just say I need out by EOY. I'm retiring and need this settled. I don't want any liability to follow me
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Old 07-05-2020, 07:55 AM   #60
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This is your money question. I would just say I need out by EOY. I'm retiring and need this settled. I don't want any liability to follow me
No, let the attorney set the deadlines. 6 months is far too long.
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