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Financial Planning / Tax Strategies
|Subject: Joint Inheritance of a House||Date: 4/8/2000 1:41 PM|
|Author: badpotato||Number: 33784 of 119697|
My mother in law, Charlotte, had two daugthers, Abigail and Bella.
Charlotte owned a house in common with Bella. Bella's half was mortgaged; Charlotte's half was paid for.
When Charlotte died, she put her half of the house into a trust for the two sisters - each will receive 1/2 of Charlotte's half (=1/4 of the whole house).
At the end of the 7 years the trust expires, and Bella -who lives in the house- is to buy Abigail's quarter at fair market value. If Bella does not buy Abigail's quarter, the entire half Charlotte left becomes Abigail's.
I'm married to Abigail. We're not sure that Bella is going to be able to pay Abigail for the quarter of the house. The question, what recourse will Abigail have? At the end of 7 years she will own 50% of the house outright, but what can she do? Can she sell the house? Will she be liable for taxes?
Since the bank owns the lion's share of Bella's portion, would Bella, as a minority owner, be unable to prevent the sale of the house?
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