Legal Question in Wills and Trusts in North Carolina

While your mother may have had a will, no one here has seen the document so even though it was witnessed and notarized, it may well have been invalid, especially if your brother was one of the witnesses. However, it is to your benefit that your brother has tossed out the will and seeks to distribute everything amongst the 4 of you.

It is common when an estate is ready to be closed that the beneficiaries are asked to sign a receipt and release. Upon confirmation that the final accounting is in order, the beneficiaries then get their distribution. So your share would be equal to 1/4 the value of the car and any other property owned by your mother's estate, less payments for claims or administrative expenses. If you have questions, you should review the estate file to see what is listed in the inventory and accounting and see what you are entitled to. If you fail to sign the receipt and release (assuming all is in order), then you are just making things more difficult. The administrator then has to send you the final accounting; if you have an issue with it, you must file written objections. If no objections are filed, then the account as proposed will stand and you will receive your share upon closure of the estate.

Regarding the house, if it was owned by your brother and mother together as tenants in common, then 1/2 of the property would have to go through your mother's estate and be distributed as a probate asset. So all 4 of you would split 1/2 of the house. The other 50% of the house belongs to your brother because his name was on the deed.

Since only your mother was on the mortgage, of course the mortgage will have to be satisfied if the property is sold. Heirs generally inherit property subject to any existing mortgages or liens, absent something in the will stating otherwise.

Your brother, from your description, appears to have behaved decently throughout this. I say this based on the type of conduct which people usually describe to me. You articulate no facts justifying any distrust on your part. The attorney for your mother's estate is correct - they represent the estate for your brother and implicitly they represent your brother in his capacity as administrator for the estate. If you believe your brother is up to no good, then you and your sisters need to hire an attorney to represent you.

This forum is not intended to be a substitute for getting a consult with an attorney. No attorney can possibly evaluate your situation. If you cannot afford a consult, then you need to do some research. Anyone can review the estate file. Go to the court and review it. If you are not in the area, then either get a friend or relative or call the court, ascertain the fees for copying and order a copy. Look at the inventory and accounting - this will tell you what property is in the estate and how it is to be distributed. Also, the register of deeds for most counties are online. Get a copy of the deed to your mother's home. Under the heading "grantees" your mother and brother's name should appear. If there is no magic language indicating that the property is owned as a joint tenancy with a right of survivorship, then your brother and mother owed as tenants in common, which means that when your mother died, 50% of the land goes to probate to be distributed among all 4 of the children and 50% of the land goes to your brother. If your brother only wishes to keep his 50% and allow you and your sisters to have the other 50% then he is being overly generous.

Inheritances are not subject to estate tax in NC. However, land passes to beneficiaries outside probate. The beneficiaries get a stepped up basis meaning the land is valued as of the date of death. If the home is sold for more than its worth, then yes, there is going to be capital gains tax. An example:

Land is worth $100,000 at time of death of mother but the land is encumbered by a $60,000 mortgage. Land is owned by mother and son as tenants in common. Land is sold later for $160,000, so the net profits are $100,000. Mother dies without a will leaving 4 kids, brother and 3 sisters.

Since brother owned 50%, he gets $50,000 plus $12,500. Each sister gets $12,500.

Brother can gift his share to the sisters and there will be no gift tax. Since home was sold for $160,000, there will be capital gains on the $60,000.

This is a very very simple example. More goes into it than this. I am NOT a tax attorney and this is NOT tax advice. When you get the added money, I would recommend that you speak to a real CPA, not someone who works at H&R Block or similar place. He/she should be familiar with estates and gift/capital gains taxes.