Legal Question in Wills and Trusts in North Carolina

You do not indicate when your father-in-law died. Do Jack and Jill want to completely renounce their inheritance or just their right to inherit the house?

If they completely want to disclaim/renounce, then the disclaimer has to meet certain federal and state requirements and must be filed within 9 months of your father-in-law's death. The renunciation is filed with the court (and I recommend also sending a copy to the personal representative too). In such case, Jack and Jill are treated as having died before the father-in-law and if there is a will, the father-in-law's assets will pass as per the will or if there is no will, then the assets will pass to Julie and any children of Jack and Jill.

If Jack and Jill do not want to complete renounce their inheritance, then you need to complete the administration of the estate. The beneficiary of the property needs to buy out the equity share of Jack and Jill. Example: property is valued at $300,000 (get it appraised) but has a $240,000 mortgage. The equity value is $60,000 so Jack, Jill and Julie would have a 1/3rd share each (I assume father-in law had no surviving spouse and that Jack, Jill and Julie would equally divide the land). In that case, Julie would buy out the shares of Jack and Jill for $20,000 each and Jack and Jill would convey their shares to Julie if she wants the land. Why is Julie's husband involved?

In NC, title to land passes as of the moment of death to the beneficiaries or heirs, not any personal representative of the estate. The heirs/beneficiaries are responsible for any mortgages, taxes, upkeep and maintenance unless the will provides otherwise. If the personal representative needs to sell the land to pay off other debts in the estate, he/she has to obtain permission from the court if the will does not provide it. Also, the heirs/beneficiaries cannot sell the property within 2 years of death unless the personal representative is part of the sale. So while the personal representative may be involved, the heirs/beneficiaries do not release any interest to the personal representative unless they are renouncing their right to inherit.

If none of the siblings want the land or if Julie cannot afford to buy out Jack and Jill's shares, then sell the land, pay off the mortgage and divide the proceeds between Jack, Jill and Julie.

I suggest that if you have not done so already that you at least consult with a probate attorney who practices in the county/state where your father-in-law's estate is pending.