Sibling "Buy-out" in Probate

[Texas Proud]

Quote:

Originally Posted by Montecfo This seems needlessly complicated. Why not just settle the estate and do the buy/sell after? Then it is all tax-free and everyone is happy. No unfavorable re-interpretation by tax authorities is possible.

We do not know what the brother wants to do.... he might want to keep it in the estate for some reason...


We have a REALLY REALLY small gas interest that was owned by my father who died in 1980... I still get checks to his estate... my mom never did get it changed and now that she passed it is not worth it for me to spend my time doing so....

[Involuntary Retiree]

Quote:

Originally Posted by Texas Proud We have a REALLY REALLY small gas interest that was owned by my father who died in 1980... I still get checks to his estate... my mom never did get it changed and now that she passed it is not worth it for me to spend my time doing so....

What do you do with the checks? I assume you live in Texas? If so, you might want to research "Texas Affidavit of Heirship" to see whether it might apply to easily (but not quickly) clean up mineral interest title problems.

[Montecfo]

Quote:

Originally Posted by Texas Proud We do not know what the brother wants to do.... he might want to keep it in the estate for some reason... We have a REALLY REALLY small gas interest that was owned by my father who died in 1980... I still get checks to his estate... my mom never did get it changed and now that she passed it is not worth it for me to spend my time doing so....

Well it sounds like the mineral interests are simply mistitled.

In this case no reason to leave the estate open and good reasons not to in my opinion.

[Z3Dreamer]

I wanted to rant even though it sounds like OP has made up her mind. First, Stormy Kromer hit the nail on the head. If you have the opportunity to cash out without destroying your relationship with your brother, do it. Even though you may not get an exactly even distribution. Let the professionals figure out the mechanics.

I have seen a few cases where the beneficiaries had such an opportunity. I advised them to take the deal. They did not, because they wanted their "fair share." So everyone got their own attorney who wanted their own appraisals. Because attorneys and appraisers are not free, they are getting less than the original deal. And the family is irreparably damaged. "Why the (insert favorite expletive) did you ask me, if you weren't going to follow my advice?"

[Texas Proud]

Quote:

Originally Posted by Involuntary Retiree What do you do with the checks? I assume you live in Texas? If so, you might want to research "Texas Affidavit of Heirship" to see whether it might apply to easily (but not quickly) clean up mineral interest title problems.

Quote:

Originally Posted by Montecfo Well it sounds like the mineral interests are simply mistitled. In this case no reason to leave the estate open and good reasons not to in my opinion.

We always just deposited them in my mother's checking account... if we are lucky we get about $100 a year..


Will look into changing them if it is simple... not worried about how long it takes for THEM to do their work, I just do not want to spend a lot of MY time..


BTW, I asked all 5 of my siblings if they wanted the interest.... all said NO...


Wish I could sell it...


BTW, we do not leave open the estate in any other way... just get a check and deposit it... put income on mom's return...

[67walkon]

OP. No will? In most states, you and your sibling each own a half interest in the house. It should be valued as of the date of your mother's death. If its worth $100,000, you own half. You could force a judicial sale, but the easiest thing would be for the brother to buy you out for $50,000. There's no tax consequences-you are selling a $50,000 asset for $50,000. Piece of cake for the lawyer.