Legal Question in Wills and Trusts in Massachusetts

Re: Do we split the costs?

I will assume the Mortgages were not taken for your benefit by your parents. If that is the case, the question is what is the value of the home less the mortgages; likewise since you have been living there, what would a resonable rent be for the home and credit half of that against the mortgages.

So if the home had a value of $200,000 and had mortgages at the time of death of $18,000 and a fair market rent of $1,000.00 and you have lived there 4 months without paying rent but you paid $4,000 for the first mortgage; then your sister is entitled to half of $200,000-14,000; or $93,000.00. The costs of buying her out, will be standard; you pay the buyer's portion and she will have to pay the seller's portion; which means if there is a deed recorded and deed stamps required she will pay the deed stamps. You will pay for the recording of the deed. However, at the end of the day it is what was your deal and is it fair to both of you.

Normally, I deduct brokerage commissions from the sale price and then allocate equity.

If I can be of assistance please do not hesitate to contact me.

Re: Do we split the costs?

Jonathan's formula sounds correct and fair. As he also points out, however, it really depends on the facts as they exist on the ground, i.e. fair market value of rent, improvements, contributions, and status of the probate administration.

If you would like to schedule an appointment, it is possible that some amicable and final agreement can be worked out between you and your sister. I am located in Quincy.

Re: Do we split the costs?

It depends on your agreement. Usually division is however out of the net proceeds.