Allen, Kathy and Richard faced a difficult time. They just lost their mother not long after their father passed away. Beyond grieving, they faced an all-too-common problem: siblings fighting over the house they inherited.
“It all happened so fast,” Allen remembers, “And unfortunately, the right safeguards weren’t put into the will. The house was just left to the three of us without any real directions on what to do with it.” Allen and Richard wanted to know how much cash they could get for the house, so they contacted our agent, Corey. They liked the offer on the house and presented it to Kathy.
Kathy, however, lived in the house and was used to not paying taxes. It was an easy situation for her and she didn’t want to leave, so she demanded more money for the inconvenience. No bigger cut, no deal, and her full refusal to move. “We could have taken her to court,” Corey said, “But almost all of the time, that does way more harm than good. Who wants to divide a family like that?”
Allen and Richard would have had to file an inheritance partition, which is when the court divides a concurrent estate into separate portions representing the proportionate interests of the heirs. When siblings exhaust all roads to an amicable agreement and are in a standoff, it creates a worst-case scenario.
The court forces the sale of the property and divides the assets. Sometimes, the court will even auction off the house right there at the courthouse, resulting in even less money for everyone.
Add on legal fees, and it’s a financial hit to everyone involved. Considering this financial sacrifice along with the emotional turmoil each party endures (families rarely ever survive the lengthy and angsty process), everyone comes out on the losing side. Being “legally right” is never worth a peaceful, yet sometimes not ideal, resolution.
If siblings are agreeable, one option is to sell inherited property to sibling. However, in many cases its best to sell the house in order to fully close the estate. What happens to the house is initially determined by the deceased’s will.