Legal Question in Wills and Trusts in North Carolina
I have a situation where a brother passed away intestate with a small estate and his legal heirs are two surviving brothers and one sister. The estate consists of a small vacant lot and about $12K of cash and other assets. The two brothers found a buyer for the lot @ $16K and now the sister doesn't want to sell (just to be mean). Partitioning would be unrealistic.
One of the brothers is the executor. Can the two brothers quit claim their share of the lot to the sister and then divide the remaining assets among themselves? The resulting split would be $6K for each brother and the sister would take the entire $16K lot. Although uneven, the brothers are OK with this. Is such a thing legal for closing out the estate? We are pretty sure that the sister doesn't actually want the property.
1 Answer from Attorneys
Ideally, the one who wants it should buy out the share of those who want to sell it. So if the sister wants it, then let her pay the brothers for the value of their share. Let;s say the property is worth $15,000 - then sister would pay each brother $5,000. The property would need to be appraised to know its value. If sister will not buy out the brothers and also refuses to sell then partition is the only way. In a partition action, the land is not divided. Anyone who has an interest in the land can bring the action. The court will then try to get one of the parties to buy out the others. If the land cannot be divided (most land can't) then it is ordered sold and any of the parties can bid for the land along with anyone else. The parties then divide the sale proceeds.
No, the 2 brothers cannot do what you propose. They can give their share of the land to their sister, but they cannot keep other assets for themselves. The only way to achieve this is if the parties enter into a family settlement agreement. I don't know why the sister would agree to this proposal. She is entitled to $4,000 from the estate minus any expenses.