Determining Acceptable Value of Inherited Real Estate?

[ultrarunner]

The executer has responsibility to the estate. Not the benefactors.
In one scenario all the OPs deeds can be ignored or discounted by simple words of "your choice" from other beneficiaries. Meaning past support and deeds have no bearing on the estate as of the now.

Your Choice has come up...

No regrets on my part but also eye opening what a future could look like.

TBN was kind enough to share a somewhat similar story and his advice in shorthand is if you want the property make the deal...

The only time factor is California Prop 13 is very real and over 10 years would save about a 100k in property tax.

Another way to look at it is my home property tax over 10 years would be 200k... if I moved to mom's the property tax over 10 years would be 50k

It's a California parent/child transfer thing...

 

[ultrarunner]

I dont even know that entitled is relevant. Based on my understanding, everyone got equal shares, so let's not act like the OP should be getting a bigger part of the equal share, regardless of the care. I do understand the perspective that a 10% investment into the home, could yield a 25% increase in value too. I just think it's better to move on quickly, get everything liquidated, and call it a day.

I do think there needs to a a quick discussion, and understanding, that you want no part of project management, and won't be handling that, and also discuss the fact there is a risk associated with the improvement costs.

I dont expect the siblings to really care about your future tax situation if you eventually purchase the property. Right now it's just the estates asset, that's it.

I'm not against you; but let's not pretend the other heirs owe you something beyond your 1/3rd share, and any legal executors fees. It all kinda sucks, but I get both sides.

I don't think they owe me anything except a can do spirit.

Maybe I'm off thinking that a buyer as is with no commissions or other charges at the full appraisal price would be suitable?

What throws me is when I ask ok, what's it worth and I get back we won't know until it's sold...

When I suggested listing with me having the right to match the best offer the response is it needs work to sell.

The only reason there is something to sell is years of careful management on my part and not going with the flow selling back in 2017

The thought of asking for consideration for moms care never crossed my mind.

The thought of everyone being happy I was able to preserve estate the estate has.

 

[ultrarunner]

He'd probably say yes.

I'm the only one around... but no.

 

[ultrarunner]

Yikes. I agree with others that your siblings must be forced to consider the real VALUE (emotional and financial) that you caring for your mother provided for all these recent years. You have the moral high ground if it comes to real argument.

I live local to my 75/74 year old parents and can see an ever-escalating path of me caring for them. My sister lives across the bay from you in south San Fran and only visits back to Michigan once or twice a year. Hopefully future estate settlements wont be a fight with her, she's quite nice and well off.

It's nice she visits... total isolation was the norm for several COVID years...

 

[paulsharvey]

Has there been a frank discussion with each sibling seperately; "how much to buy you out"?

Also, don't buy yourself into something that doesn't suit your own longer term goals/needs.

As a potential buyer; I think the renovations are a disadvantage to you.

 

[ultrarunner]

Real arguments don't give a crap about who has the moral high ground.

Someone will always bend the efforts to satisfy their present situation.

Not being snarky, but it will not mean anything to a lawyer.

This is where I questioned the estate lawyer when he advocated I consider requests outside of the trust for family harmony???

But he works with my siblings and mom met him through my brothers...

 

[ultrarunner]

Has there been a frank discussion with each sibling seperagreeeely; "how much to buy you out"?

Also, don't buy yourself into something that doesn't suit your own longer term goals/needs.

As a potential buyer; I think the renovations are a disadvantage to you.

Yes but the answer is the market determines value.

Agreed improving adds a new dimension and would delay settlement, cost money, etc.

Since meeting my inbox is flooded with comps...

 

[2manyrocks]

TBN was kind enough to share a somewhat similar story and his advice in shorthand is if you want the property make the deal...

When I suggested listing with me having the right to match the best offer the response is it needs work to sell.

Between these two statements, are they proposing any deal with you because it sounds like they only want to dress it up to sell it to the highest bidder?

And what does it mean that the estate attorney advocated that you consider requests outside the trust for family harmony??? Dip into the trust funds to cover the fix up costs even if the trust doesn't authorize this expenditure of funds?

"But he works with my siblings" tells me you need independent legal advice.

 

[Tomtint]

I have what most would consider a good background in real estate, Take my advice for what you will. First.. Dealing with family once differences of opinion surface ..the absolute worst possible thing to work through. .. In most cases, the best thing to do is blind vote in a bag and just let the majority rule. .. But back to the real estate.. Lets say the appraised value today is 1M.. Pull comps that have sold for that figure in the last 3 months. And pull what's listed today at that number and how many days on market it has. Take the anticipated reno cost...and add 30% to it.. Because a reno always has unknowns that add cost and time..which equals MO-money. If your siblings are squabbling about a couple hundred K divided x 3 or 4.. minus commissions as well as time.. Who is going to oversee the reno... Just punt and move on.

 

[ultrarunner]

Lipstick on a pig not quite but more of a flip is the thinking.

When I had a sit down with the Estate Attorney he outlined legal responsibilities and then added addressing concerns raised by the family no matter how trivial go a long way to insure future family harmony…

I had expected a cut and dry engineering approach of here is the task at hand now get busy.

I had wanted to go distributing asset by asset until done but siblings objected saying they wanted it all addressed at one time together in the entirety…

My guess is bank accounts along with stocks and bonds are easy to value/sell on a given day… fractional ownership in a commercial/industrial property with small monthly rent income and such not so easy?