If I have 2 siblings, when my mom passes can I buy her house for 2/3 the appraised value or do I have to finance the full value and get my 1/3 back?
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If I have 2 siblings, when my mom passes can I buy her house for 2/3 the appraised value or do I have to finance the full value and get my 1/3 back?
I have 1 brother and 1 sister. It would be cheaper for me to finance the 2/3 value and my brother and sister would still get their share of the estate.
Asked on November 21, 2011 under Estate Planning, Illinois
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Assuming your two siblings wish to sell their 1/3 interest each in the home that you and they may inherit from your mother to you, you can either purchase directly from them their interests after the estate is closed where you would finance the 2/3 value of the home since you have an interest in it. You would not ordinarily buy the home from the estate in that title needs to be transferred from your mother to the beneficiaries typically through a probate order.
You can either take a loan out to buy their interests or you can enter into a seller carry back arrangement where you pay them under a promissory note secured by a mortgage on the property in their names directly. I suggest that you consult with a real estate attorney about this possibility.
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