Legal Question in Wills and Trusts in New Jersey

Re: Property not divided after a will was probated

Acquiring the property by inheritance makes the heirs the equivalent of partners. If the property were sold or rented, the funds resulting therefrom would be split among the heirs. If the Executor wants to live in the home, she has to do one of two things, presuming the Will makes no provision for this:

1. Make an arms-length rental deal with the other heirs, just as if the property were rented to an independent third party. An annual income tax return would be filed and all heors would have to report their share of the net income/loss resulting from the rental.

2. The Executor would have to buy out any heirs who do not consent to her renting the property, and those not wanting to be bought out would be treated as explained in Point 1.

If there is disagreement among the heirs, any one not agreeing has the right to bring a suit for partition, which would compel that the property be sold or, at least, that the share of the dissenting heir be bought out. If you need more information, contact me directly.

Re: Property not divided after a will was probated

Acquiring the property by inheritance makes the heirs the equivalent of partners. If the property were sold or rented, the funds resulting therefrom would be split among the heirs. If the Executor wants to live in the home, she has to do one of two things, presuming the Will makes no provision for this:

1. Make an arms-length rental deal with the other heirs, just as if the property were rented to an independent third party. An annual income tax return would be filed and all heors would have to report their share of the net income/loss resulting from the rental.

2. The Executor would have to buy out any heirs who do not consent to her renting the property, and those not wanting to be bought out would be treated as explained in Point 1.

If there is disagreement among the heirs, any one not agreeing has the right to bring a suit for partition, which would compel that the property be sold or, at least, that the share of the dissenting heir be bought out. If you need more information, contact me directly.