Legal Question in Wills and Trusts in California
House in Probate
My father passed away in March 2007, his long time girlfriend was named executrix. Since the real estate market is in a slide right now, we all (me and my 4 siblings) agreed to take the house off the market now and lease it. MY QUESTION: Does the house have to be rented at fair market value? Me and my siblings want to rent it to my niece for the amount of the mortgage. Executrix wants to gouge her for $1500.00 above mortgage payment. Me and my 4 siblings, along with executrix are all named as heirs to the house. Do we have majority rule here? Please answer asap as I meet with executrix on Saturday to discuss this with her. Thank you very much.
3 Answers from Attorneys
Re: House in Probate
No. Majority rule doesn't work. Each beneficiary has the right to require the executrix to take action that is reasonable from a commercial point of view to maximize the value of the estate and to obtain a fair and adequate return on the estate's assets pending distribution.
Re: House in Probate
Why did you wait until now to post you question?
Mr. Roth is correct in his answer. Why should the five of you be entitled to reduce her share of the fair market rent? The IRS could imput the additional amount of rent to all of you as income. Since it appears that the house will be split into 6 even shares, you could do at least one of two things: 1) rent the house at full market value but all five of you give a gift to the niece of your portions above what you want to rent it to her for [remember, you are paying not only the mortgage payments but also insurance, taxes, a liability insurance and fire damage policy, taxes on the income from the house, etc. 20 buy the ex-girlfriend out of her share of the house, which is only 1/6th.
When you meet with her, try to bring along, with her permission another sibling who is calm and makes good decisions. Do not saying she is "goughing" , etc.
Re: House in Probate
Why did you wait until now to post you question?
Mr. Roth is correct in his answer. Why should the five of you be entitled to reduce her share of the fair market rent? The IRS could imput the additional amount of rent to all of you as income. Since it appears that the house will be split into 6 even shares, you could do at least one of two things: 1) rent the house at full market value but all five of you give a gift to the niece of your portions above what you want to rent it to her for [remember, you are paying not only the mortgage payments but also insurance, taxes, a liability insurance and fire damage policy, taxes on the income from the house, etc. 20 buy the ex-girlfriend out of her share of the house, which is only 1/6th.
When you meet with her, try to bring along, with her permission another sibling who is calm and makes good decisions. Do not saying she is "goughing" , etc.
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