Need to liquidate 50,000. Which account?

[Goldendoodlebug]

If pushed, is it possible that Gary will again have an "accidental fire"? Are you sure the home insurance is paid up to date?

In the matter of the original question, if pushed and there is no alternative, how about offering a promissory note? It would only seem fair considering..... When the estate settles, pay it off. to do so, DH MUST have a document stating that the original 50K paid to DH and then returned was to buy part of his share of the home and is buying his share back. However, if the home sells for < 100K then DH would see nothing.

I was worried he was not paying the insurance on his Mothers house but he showed the receipt to our lawyer.

It’s now up to the judge. Gary has ghosted my husband for a couple of yrs now. His phone does not have messages set up, I offered to buy him a new phone, he refused.
Obviously now all the talk8 g is through attorney and the court.

 

[Goldendoodlebug]

WOW, this story is almost identical to another inheritance story that was posted here within the last couple of years that also did not go well.
Consider pushing for the executor to be replaced for failure to perform his duty either through incompetence or misconduct especially if he's been living in the house rent free for three years.
https://www.alllaw.com/articles/nolo/wills-trusts/remove-executor.html

We tried to get him removed the beginning of this yr when we first obtained an attorney. The judge said no, I think he knew it would delay the closing and he just wanted it off his books. Of course, since then, we have been to court I think three times and it’s not been resolved

 

[Goldendoodlebug]

If pushed, is it possible that Gary will again have an "accidental fire"? Are you sure the home insurance is paid up to date?

In the matter of the original question, if pushed and there is no alternative, how about offering a promissory note? It would only seem fair considering..... When the estate settles, pay it off. to do so, DH MUST have a document stating that the original 50K paid to DH and then returned was to buy part of his share of the home and is buying his share back. However, if the home sells for < 100K then DH would see nothing.

Thank you, I like that idea, I’ll look into it

 

[Goldendoodlebug]

*IF*, and that is a big if, the judge says you have to pay back the $50K first, then you should ensure the $50K is held in an escrow account and only available to the brother once house is sold and all proceeds are sitting ready for distribution. Ideally from the same or similar escrow account. Do not let the freeloader brother have any money control of your husband's share.

I also didn't get into the fair rental income of the house for past 4 years that apparently was never received.

Your brother in law is a useless freeloader. Have judge settle the estate, with court ordered documentation. Then say good riddance.

To answer the original question. I would use HELOC.

If the judge does require it it will be held in escrow. Our attorney is making sure probate does not close until the house is sold. None of us trust Gary.

Gary has lived there rent-free. He is a free-loader.
My husband has not wanted to co fro t his brother and as his brother only communicates with him by postcard (I’m not kidding!), it’s been difficult.

We are trying, but it is still taking a long time.
We got the lawyer, I think in December?. Court is in September.

Don’t worry, once we get the money, Gary is out of our lives

 

[ivinsfan]

If the judge does require it it will be held in escrow. Our attorney is making sure probate does not close until the house is sold. None of us trust Gary.

Gary has lived there rent-free. He is a free-loader.
My husband has not wanted to co fro t his brother and as his brother only communicates with him by postcard (I’m not kidding!), it’s been difficult.

We are trying, but it is still taking a long time.
We got the lawyer, I think in December?. Court is in September.

Don’t worry, once we get the money, Gary is out of our lives

Well Gary owns half the home he is living in, pays 100% of the bills and has paid you 50k...you can call it anything you want but freeloading is not probably the correct term.

 

[RetiredAndLovingIt]

Well Gary owns half the home he is living in, pays 100% of the bills and has paid you 50k...you can call it anything you want but freeloading is not probably the correct term.

He may be paying the bills but will he be turning in receipts for reimbursement or is he paying them from estate funds?
Also the estate has not been settled and funds have not been disbursed so he doesn't own it yet. If he has transferred the property to his name that would be illegal.

 

[Goldendoodlebug]

Well Gary owns half the home he is living in, pays 100% of the bills and has paid you 50k...you can call it anything you want but freeloading is not probably the correct term.

Well he is paying for the electric and cable because he is using them.
They house also sits empty for half the year, not very safe.

He still owes my husband over 75,000. And it’s been almost 4 yrs.

Not sure why you think that’s fair?

He’s only going to pay now because he will be compelled to through the courts

 

[ivinsfan]

Well he is paying for the electric and cable because he is using them.
They house also sits empty for half the year, not very safe.

He still owes my husband over 75,000. And it’s been almost 4 yrs.

Not sure why you think that’s fair?

He’s only going to pay now because he will be compelled to through the courts

Hold on I never said it was fair. I said these things mean it will be hard for you to get a sell the house order from the judge,. I hope your lawyer works some magic but I am pretty cynical about people that know how to work the system like your BIL.

 

[ivinsfan]

He may be paying the bills but will he be turning in receipts for reimbursement or is he paying them from estate funds?
Also the estate has not been settled and funds have not been disbursed so he doesn't own it yet. If he has transferred the property to his name that would be illegal.

He has claim to half the house then....it's kind of an estate issue but it got messy when the OP took personal money from the money as a house payment.

 

[RHailey]

Since you had already agreed to a value of $250.000 for the house 4 years ago, my guess is the attorney wants you to payback the $50,000 partial payment in order to help void the prior settlement and start over with the current value ($400,000). As others have mentioned, if you return the money, certainly put it in some sort of escrow account, or it might just disappear. I've been the executor for both my parents representing myself and 3 sisters It is amazing what a less than honest executor can get away with. Your BIL really should be removed from his responsibility so the estate can be properly resolved.

 

[Goldendoodlebug]

I think you are correct in everything you’ve stated. Our attorney believes the judge will ask for the money back to sort of wipe the slate clean and start with the current value of the house

The money will definitely go in escrow.

Gary is not only dishonest, but he is incompetent.
The reason probate has gone on for 4 yrs is he did not know how to submit the proper paperwork.

 

[EastWest Gal]

My experience with friends, acquaintances, and relatives is that they afraid to submit the paperwork. About anything. I did my aunt’s estate taxes and her final tax return. Her son, my cousin, had a pile of unopened mail 4 months after she had passed. I flew across country to help. Her income tax return took about an hour. She did not require an estate return.

I’m trying to fix a nonprofit for state incorporation, which should have been done 19 years ago. It is appalling the level of fear and incompetence in dealing with such issues.

Settling my dad’s complex estate took time. I wrote letters, divided up his assets with my sister, and, making a math error, sent her $45K to correct it. My cost? $1500 to an estate attorney for his guidance. Dad’s estate was worth $3M.

Every high school in the country needs to have a financial affairs course as a requirement for graduation. So many are fearful of dealing with these issues that they bury their heads in the sand and avoid, avoid, avoid.

 

[imnontrad]

>proceeds to be divided equally, however we will have to pay back the 50,000

the 50K comes out of your share of the sale.

 

[CindyBlue]

Off topic, but I had to tell you how much I love your quote “Use it up, wear it out, make it do, or do without.” This was one of my parents’ favorite quotes as I was growing up. I finally ended up asking a Latin teacher to translate this into Latin, and put it on a T-shirt for mom, who loved to go to garage sales and flea markets, so I changed the last part to “…or go to the flea market!”

 

[Magus]

Hi,
We need to pay back my brother-in-law 50,000 for money he has given us to partially pay for House of husbands Mother.
Long story short (hopefully)
Mother-in-law died almost 4 yrs ago. Brother is executor.
He wanted to buy her house, but didn’t have the money or income to get a mortgage, a friend offered to loan him the money. Over about 2 yrs , he sporadically sent money, 3x totaling 50,000. He still owes 75,000, but hasn’t since any money in about 2 yrs

I'm not really sure why you'd have to pay back the entire $50k. Is the house going to be split between him and you all? If so, you should only pay half the $50k he's paid. The only reason you should pay $50k is if you will be the only owner of the house.

Think about it this way, if you were buying a house for $250k between you and him, and you needed a $50k downpayment, you'd split it evenly at $25k a piece. If you paid $50k, you'd be paying your $25k plus his $25k.

So assuming you are splitting it, you only need $25k to make BIL whole, not $50k.

 

[Goldendoodlebug]

I'm not really sure why you'd have to pay back the entire $50k. Is the house going to be split between him and you all? If so, you should only pay half the $50k he's paid. The only reason you should pay $50k is if you will be the only owner of the house.

Think about it this way, if you were buying a house for $250k between you and him, and you needed a $50k downpayment, you'd split it evenly at $25k a piece. If you paid $50k, you'd be paying your $25k plus his $25k.

So assuming you are splitting it, you only need $25k to make BIL whole, not $50k.

Hopefully the house will be sold.
We are not planning to buy it.

 

[Magus]

Scratch that - I miss-read your original post - I didn't realize you all got $50k, I had it going to a bank.

 

[corn18]

Sending $50k to a dead beat that is squatting in a home you are entitled to half of seems like a really stupid idea. Throwing good money after bad sort of thing.

 

[Goldendoodlebug]

Obviously we aren’t giving him the money. It will go into an escrow account and after the house is sold the proceeds from the house will be divided equally

 

[pacergal]

If the court session is in September, you may not have enough time to get a HELOC.
If you already are approved and have one, that would probably be my choice, if the rate is low.
Hopefully, the house will sell rather quickly and the money will be back in your hands to pay off the HELOC.

 

[Goldendoodlebug]

That is the reason why I asked in advance. I k ew I would need some time to get the money.
However, almost all the advice on the thread told me not to worry about it before the judge ordered us to pay the money *

 

[ivinsfan]

That is the reason why I asked in advance. I k ew I would need some time to get the money.
However, almost all the advice on the thread told me not to worry about it before the judge ordered us to pay the money *

So to be fair to all of us that thought it could be dealt with in a different manner or might not go the way you think, you need to come back here and tell us what actually happens in court..

 

[Goldendoodlebug]

I will.
One month from today.

 

[ivinsfan]

I will.
One month from today.

I hope you found a good lawyer at a decent price and everything comes as the lawyer predicted.