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? Thanks.BP
Woo, this one is better than going to the movies and seeing "Star Wars Part I." I'm sorry to be flip.It sounds to me -- and I am not a lawyer -- that if Bella can arrange a loan for Abigail's quarter, she is in good shape. To say "the bank owns my property, car, etc." is really false. It's whose name is on the deed. Therefore, Abigail's options will kick in if Bella can't arrange the loan. If the two sisters then each have 50% interest in the property, the lawyers will get involved for sure. Keep us posted.
Yeah, it could be pretty messy. Abigail doesn't seem to have any recourse should Bella not get a loan, and to make matters worse, we're afraid she'll be liable for half the taxes on the house her sister is living in, since she'll be half owner.Very bad setup. Charlotte never anticipated that Bella wouldn't be able to get the money, so the will doesn't spell out what should happen in that case.
<< 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? >>Short answer: a partition suit, through which the property would be sold and the proceeds divided according to the ownership (and lien) interests.Long answer: Sister suing sister? Eccch! If Bella's amenable to selling, suit wouldn't be required. If Abigail is concerned about getting her bucks, suit is the only way to guarantee it if Bella won't sell. Obviously, the lawyers will get a share, and I doubt that this will improve family relations.If Abigail's primary concern is potential liability, she can quit claim her interest in the property to Bella. End of Abigail's story.If Abigail is concerned about Bella's living conditions, you know the story better than I do.TMF ExROPhil Marti
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