Legal Question in Wills and Trusts in Michigan
Sale of Estate home
My mother recently passed away at age 85. Her only asset is a tiny lakefront home in north. MI, left to her 4 daughters. 3 of us would like to keep the home. The oldest, the pers. rep. wants the home sold. If we pay off her share, do we write the P.A. for only the amount that we will pay her? We recently had a Realtor come out - she said if we listed, the home should start @$239,000. Also had an appraisal @$240,000- she said that is the max a bank would lend money on. The Pers rep thinks based on these 2 assessments, she should get $60,000. But I live in southern MI. and know that homes are not selling for the appraised value, but usually for much less than list price. Also, couldn't we deduct Realtor fees from her share, as if we did end up selling it $15,000 would come off the top for Realtor fees. There are also $17,000 in sewer & water assessments. Shouldn't those be divided 4 ways, regardless of if we pay her off or not. Because she is the Pers. Rep, she thinks that whatever she says is the last word. She is unwilling to negotiate or discuss anything with any of us. Also, she had the locks changed & will not allow us to stay there, we must pay for a motel, even when we have all been paying the taxes for past 2 years
2 Answers from Attorneys
Re: Sale of Estate home
If the beneficiaries feel the Personal Representative is being unreasonable they can always Petition the Probate Court and let a Judge decide the outcome. I sounds like you and your (non-PR) siblings are in agreement and are considering a reasonable plan - especially in this real estate market. On the other hand, it sounds like the PR may be acting unreasonably. There is no way to know how a Judge would rule, but bringing this to a head will at least allow you to all move forward. Good luck.
Re: Sale of Estate home
The PR will have a difficult time selling her portion of the home. When she does receive a valid offer, the three of you could offer to match that. You could bargain for this through purchasing a right of first refusal. If she will not sell this to you, you could go before the court to get it, and then bring up the other issues.
My opinion is that the sewer and water assessments should be split 4 ways and the realtor fees (if there is a realtor) should be paid by her. You have a hard time taking realtor fees out without having a realtor because the appraisal does not necessarily reflect the inclusion of realtor fees.
If you can negotiate a right of first refusal and this would allow her to find a buyer at the price she thinks she can get, and allow you to match. She is likely going to appear unreasonable (before a judge) if she will not agree to this.
(Please do not rely on this communication which does not create an attorney-client relationship and which is intended merely as a discussion of legal principles and is not to be relied upon.)
If you have further questions or concerns, or desire more specific information, please contact me at www.lawrefs.com.
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