Dear Monty: Owning real estate with no will or estate plan is problematic
By: Richard Montgomery October 8, 2019
By: Richard Montgomery October 8, 2019
Reader question:
My grandparents did not leave a will. All their children passed except three sisters. My mother and several siblings passed. One of the grandchildren has been paying taxes for years, and another has been paying electricity. Do these three sisters have the right to sell timber and leave the grandchildren out?
Monty’s answer:
Every state has a law that describes the disposition of an estate when a person dies without a will. The code in each state is different. The fact that the living sisters have allowed other progeny to contribute to expenses may be a legitimate claim to the recovery of those costs. State law may also speak to that question.
Every state has a law that describes the disposition of an estate when a person dies without a will. The code in each state is different. The fact that the living sisters have allowed other progeny to contribute to expenses may be a legitimate claim to the recovery of those costs. State law may also speak to that question.
If they have already said “no,” consider seeking two legal opinions as to your options. At this point, you are asking for a view you are not engaging the attorney. If it is speculation on your part, consider arranging a family meeting, or possibly having one of the grandchildren meet with one of the sisters.
There is no mention of the size of the property or the value of timber. This information is essential to understand. For example, 20 acres of walnut trees may be more valuable than 100 acres of basswood. Individual payouts will be less as the number of descendants increase.
Do the three sisters have children? What is the total number of grandchildren? Has there been a conversation with each sister? Have they have jointly declared that they will not reimburse the expenses made on their behalf?
There are choices for family members
- Accept the decision and set it aside for the future. The sisters may ultimately pass the property, and the proceeds of the timber sale to these relatives.
- Start a conversation utilizing a mediator to act as an arbitrator. There are many advantages to this method of solving disagreements, not the least of which is mediation is less confrontational than a legal proceeding. The mediation process involves an agreement upfront that both parties will abide by the mediator’s decision.
- If the sisters decline to mediate, decide on which attorney to utilize. You may need to find an excellent real estate attorney.
It is unclear in the information provided here as to the quality of the relationship between the family members. With grandchildren paying operating costs, it appears positive on the surface. Often, family members do not like to discuss death or dying and all the emotions that go along with it.
Work hard to proceed on a path that results in progress toward fairness and a solution where the relationships are intact. It is okay to have misunderstandings, and they do happen. It is also okay to communicate it openly between the parties. As an example, I have not used this website, and this is not an endorsement, but with technology and new approaches to minimize family conflicts there are such companies to help prevent such situations.
Richard Montgomery is the author of “House Money – An Insider’s Secrets to Saving Thousands When You Buy or Sell a Home.” He is a real estate industry veteran who advocates industry reform and offers readers unbiased real estate advice. Find him at DearMonty.com.