Selling an inherited house with "houseguests"

[youbet]

Quote:

Originally Posted by silvor My dad was sick for over a year, almost died several times in the mean time, and finally passed after being in the hospital 3 weeks. The BIG problem is my brother's son and wife moved in "temporarily" at least 6 weeks ago.

silvor.....

Just curious, did your dad's grandson and his wife move into the house while your dad was still there? The timing mentioned in your post seems to indicate they might have been there with their grandfather for three weeks before he went to hospital and passed.

During the year+ your dad was sick, did anyone other than yourself provide care for him or help him out in any way? Or was he able to get through this year+ of severe sickness and near death on his own?

[RobbieB]

I don't think it will be easy to evict in these covid times.

[OldShooter]

Quote:

Originally Posted by RobbieB I don't think it will be easy to evict in these covid times.

Another reason to just distribute the house to the brother. Let him deal with the situation he created.

[pb4uski]

Quote:

Originally Posted by RobbieB I don't think it will be easy to evict in these covid times.

The squatters don't have a lease and are not paying rent, so I don't think it is an eviction... they are trespassers.

[plex]

Well the eviction ban was struck down officially today by the Supreme Court, so it is probably a moot point. I would lean towards them being trespassers, but they could probably argue they were given permission from the executor (OP) for the initial period they were in there. Either way, eviction is necessary within a reasonable amount of time if the relatives are starting to squat on the residence, the OP probably does not want to start establishing a history of granting them a life estate on the property, when the OP had no intention to gift them one in the first place. Housing is not something you usually use for just a month or two for anything other than a vacation, so I wouldn't assume they will leave promptly after already being notified multiple times. Also, it may be difficult to show the house while they are there, so that is another reason to handle this promptly, it is basically interfering with the original intent of the will if your brother is not buying you out within a reasonable time.

Personally, I could see this having some chance of happening in my case as well. I'm the likely executor, my parents have a paid off house, and my brother is fairly bad with money. I would probably have given them 1-2 weeks to decide whether to buy it. Since 1/2 the house would probably be less than 1/2 the liquid assets, just lower his payout based on half the value of the going rate for the house.

(this is not legal advice)

[pb4uski]

Quote:

Originally Posted by silvor Going to see the lawyer tomorrow. I’m nervous even though I talked to him at least a half dozen times through the years about other things. A couple things: My brother told me at one point he’s 70% sure he wants the house. Except I think he wants his kid to live there until he decides to leave and we “split “ the bills. And then decide in the spring if he really wants to buy. He said ‘who cares, the trust pays the bills’. . REALLY?? There’s really no issue over the contents of the house. The auctioneer says around 6k. So I really don’t care. It’s junk to me.

Any update?

[imnontrad]

He is squatting.
Talk to a lawyer. Present your brother with a short term lease agreement with any rent not paid deducted from his inheritance and a definite date to either proceed with buying the home or vacating - and start eviction procedures. Also, take photos, if possible of the condition of every room so if your brother trashes it, he will pay for repairs.

[HMMY]

Definitely post after you meet with the attorney. We are going to have a situation, too. I am the executor and the house will be left to five children jointly. My sister and child moved in with my dad recently. I don't think she will want to sell, but she can't afford to buy everyone out. There is a promissory note due upon the death of both parents to be paid from sale proceeds. There are no other assets.

[pb4uski]

Is the house collateral to the promissory note? Is the lien recorded with the county?

You might want to gently let you sister know that she'll need to move soon after you father passes if she can't afford to buy the house so it isn't a surprise to her.

[plex]

Quote:

Originally Posted by HMMY Definitely post after you meet with the attorney. We are going to have a situation, too. I am the executor and the house will be left to five children jointly. My sister and child moved in with my dad recently. I don't think she will want to sell, but she can't afford to buy everyone out. There is a promissory note due upon the death of both parents to be paid from sale proceeds. There are no other assets.

You may be able to work something out if she is willing to assume the promissory note, plus a reverse mortgage for the difference her portion/her assets cannot pay. I am somewhat doubtful she has the credit+assets for that though if she is really only barely getting by. If the estate is small, the value of the house is bigger, and her credit is shot, that is her own problem, and the only fair option is to sell the house/have it bought by a solvent sibling.

[HMMY]

Quote:

Originally Posted by plex You may be able to work something out if she is willing to assume the promissory note, plus a reverse mortgage for the difference her portion/her assets cannot pay. I am somewhat doubtful she has the credit+assets for that though if she is really only barely getting by. If the estate is small, the value of the house is bigger, and her credit is shot, that is her own problem, and the only fair option is to sell the house/have it bought by a solvent sibling.

Sister is too young to qualify for a reverse mortgage. She has excellent credit but makes $11/hour, so not sure what kind of mortgage she could get.

[sroby2020]

Quote:

Originally Posted by silvor Which by him buying the house would work out to that anyway. But man, that seems TOO easy.

It is easy. We did something similar when settling my FIL's estate a few years ago. Cash in lieu of property worked out great for all parties.

[Maidensong]

Yes, unfortunately your brother has put you into a position where you MUST evict him. Otherwise, he can legally claim the entire property under adverse possession laws.

Call an attorney today.

[obsessed]

Quote:

Originally Posted by Maidensong Yes, unfortunately your brother has put you into a position where you MUST evict him. Otherwise, he can legally claim the entire property under adverse possession laws. Call an attorney today.

It takes years before someone can claim adverse possession so I don’t think this is a concern in this situation. They are still squatting though so that needs to be dealt with.

[OldShooter]

Quote:

Originally Posted by Maidensong ... Otherwise, he can legally claim the entire property under adverse possession laws. ...

No. There are specific conditions, the threshold for possession is years, and IIRC the owner of the property must have ignored or accepted the occupancy.

I'm still of the school that says OP just distributes the house to his brother without negotiation plus any boot cash necessary to even up the halves. Let brother deal with squatters; he created the situation.

[pb4uski]

Quote:

Originally Posted by OldShooter No. There are specific conditions, the threshold for possession is years, and IIRC the owner of the property must have ignored or accepted the occupancy. ....

Exactly, something like 17 or 20 years as I recall and since the squatters at least initially had the OP's permission their use wasn't adverse to begin with.

[RetiredHappy]

I am only familiar with British law and the threshold is 7 years.

[jazz4cash]

Wrong thread!

[BubbaChris]

silvor,

I agree with the advice to get a paid-for appraisal.

I agree with the advice to consult with/listen to your lawyer, and to allow him/her to become the communication conduit to your brother on the important things.

Main thing I can add is based on language I've seen two other estate attorneys write up in trusts for my family - If a beneficiary challenges the terms of the trust, he will lose your rights to the stated inheritance. Via communication from your lawyer it is a huge lever to get the other party onboard with whatever move-forward plan the executor (you) decides.

Another small suggestion is to track your time working on this and pay yourself from the trust for the efforts. This includes time spent on things other than dealing with your brother. I know the dollar amount won't matter, but I found it to help with my mental health as I worked through the process for each of my parents.

Best regards,
Chris

[silvor]

The wheels of justice are slowly turning. At $250/hr.