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Inheriting in Pennsylvania |
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We have a very complicated situation. My significant other's father recently passed away. His house was in his name alone, but he lived there with my SO's sister and her family. There is approximately $200,000 of equity in the house with about $100,000 left on a 15-year mortgage. Their father's will stated that everything in his estate would be divided equally between the two sisters. My SO's sister and her family would like to keep the house, but they don't know if they can afford the mortgage payments and would probably be unable to refinance due to credit issues. It would also be very difficult to them to come up with the money to buy out my SO's share of the house. It seems as though they are trying to find a way to keep the house without paying my SO anything. They mentioned having the right of survivorship because they have been living in the house, even though it is not in their name. Is that possible? They also said that technically the bank owns the house and they would just be assuming the mortgage. Everyone will be meeting with the attorney soon, but I am curious as to what our options might be. If the house is sold, is it true that the profit would have to be divided equally between the two sisters who inherited the house? Would my SO have to pay inheritance tax on her share? Thanks. |
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I don't understand about the bank owning the house; that would be an unusual situation.
Just having lived in the property doesn't give anyone a right of survivorship.
Either owner has the right to go to court and force a sale. Such a "partition" sale seldom yields full market value and it would be a shame if that had to happen.
Yes, if the property is sold, the proceeds should probably be divided equally--I don't know if there's anything else in the estate.
Until then, there's the question of who pays the expenses -- mortgage payment, taxes, insurance and the like. On the one hand, the family residing there owes half a market-value rent to the other owner. On the other hand, your SO is liable for half the expenses (not counting utilities). That's one thing to work out, peaceably I hope.
Pensylvania does charge an inheritance tax, possibly about 4.5 % of the actual inheritance. I'm not altogether sure about the figure. |
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Edith
Originally published on October 18, 2007 |
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