My brother bought out my share of our mother’s cabin. We wanted out, so we were required to sell at a discount. What happens to our mom’s 50% share?

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Dear Quentin,

My mother has four children. She is an amazing mother, and my siblings and I are very close.

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She has a pretty comfortable retirement and is working out her estate plan. She co-owns a lake cabin with my brother. It was originally my grandparents’ cabin and after they died, my mom and my brother and sister and I bought it together, with my mom having 50% and the four of us with 12.5%. was owned.

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Ultimately, the three siblings (including myself) had to give up the ownership structure of the cabin for various reasons. My brother chose us to buy. We had to pay a 10% fine for the condition of leaving the cabin, so he bought us at our appraised share. He and my mom now own the cabin 50/50.

When my mother dies, our brother has the first right to refuse to buy her share. Our question: Does she get her share at a 10% discount – which was the advice of our family estate attorney – or, given that my mother’s share is actually part of her estate, should she get her share at fair market value? should buy?

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It’s my mom’s money/cabin, and we all think she can do whatever she wants with it. Preserving family ties is the most important thing for all of us, as we have all been very close during this process. However, my mother wants to do what is right and appropriate. Can you please give your opinion?

cabin Fever

Dear Cabin Fever,

You and your siblings sold your brother at a discount because you all decided to sell your shares early, and the 10% penalty was applied as a disincentive against selling during your mother’s lifetime. It’s a complicated business when there are lots of owners.

The easiest thing would be for your mother to give 50% of her cabin to her brother, and take that current market value at the time of his death – a quarter of that – out of his inheritance and divide it in three ways.

However, it may happen that the sale agreement specifies that your brother receives a discount on the sale of the remaining portion. If so, he pays her 50% on the reduced price, according to the agreement, and you all live happily ever after.

Putting family assets in a trust can help avoid lengthy probate, which is also a public process. While the process offers more privacy, it also comes with more paperwork and separate tax records, which can be difficult and/or costly.

The best part about your story is that you all are overcoming this difficult family financial dilemma while keeping your relationships intact. Not speaking (or emailing) in the heat of this time requires a lifelong commitment.

If this column is any indication, it is rarely the case.

You can email The Manitist at [email protected] for any financial and ethical questions related to the coronavirus, and follow Quentin Fotrell Twitter.

check out The Maniast Private Facebook Group, where we seek answers to life’s most thorny money issues. Readers write to me with all kinds of dilemmas. Post your questions, tell me what you’d like to learn more about, or peruse the latest Manifest column.

Dhani is sorry that he cannot answer the questions personally.

Other Movies-TV Shows with Quentin Fottrell Cinematography,

• My married sister is helping herself with our parents’ most valuable asset. How do I stop him from robbing their house?
• My mother had my grandfather sign a trust, leaving millions of dollars for two grandchildren and giving everyone else away
• My brother’s future ex-wife is embezzling money from her business. How do we detect hidden accounts?
• ‘Grandma passed away recently, leaving behind a 7-figure estate. Needless to say, things are getting messy’

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