Legal Question in Wills and Trusts in North Carolina
My Mother passed away 5/11/14 and had a will. She has made all her daughter's (4) the Exutors of the estate. The estate is in probate as of 7/14. One sister is wanting to purchase the clear title, no mortgage owed family home. She refuses to provide a contract but wants to get a loan for below market value + all items in the home. She also wants us to respond via Facebook to her demands. Can she seek a loan without a contract? What are our legal rights as heirs concerning the Real Estate procedures for acquiring the purchasing of the family home? The family home is in Tennessee.
1 Answer from Attorneys
This was stupid to make all of one's children executors. The 4 daughters should correct their mother's error by deciding which of them is best suited to be the executor and the other 3 need to renounce their right to serve.
However, your question makes no real sense. Estates are not probated on Facebook. And how can a loan be obtained from a bank with no contract? I don't know many banks that make such loans.
My advice would be for the person or persons who wish to be executor to seek out a probate attorney. The attorney needs to review the will. You do not indicate who is to receive the home and any possessions in the home. Assuming that the will divides all 4 ways, then the proper thing to do is get the home appraised. The sister who wants the home then needs to buy out the shares of the other sisters - so if the home is worth $100,000, she needs to pay each of the other 3 $25,000 apiece for a total of $75,000.
How she gets the $75,000 is up to her. The other sisters can provide owner financing I suppose with the sister who wants the home paying each of the 3 other sisters. This is going to be a nightmare and again, I don't see how things are done without a contract and without liens being recorded.
However, the remedy is simple. If the sister who wants the home is not going to act properly then the other 3 can buy out the share of the problem sister and if she still refuses this as well then any of the 4 daughters can file what is called a partition. In partition, the land will be divided and if the land cannot be divided then it will be sold and the proceeds split 4 ways.
You will need a TN attorney however. You have directed this question to NC lawyers Partition will be as per TN law because the land is there. I assume that estate also is being probated in TN and if so, TN law will govern probate.
My advice is premised on NC law. TN law may or may not be similar.