Co-Tenancy not Addressed in Living Trust

[ILLTEACHYOU]

What is the name of your state? California.
Found out today, after trying to refinance my home, that since my father(deceased) was a "co-tenant" and this issue was not addressed in his trust/will (because no one even thought of it), his interest in my home has become part of his estate and must be split with my siblings. Any recourse? Two of my sisters are estranged and bitter, would love to take part of my home from me. Help!!

 

[HomeGuru]

What is the name of your state? California.
Found out today, after trying to refinance my home, that since my father(deceased) was a "co-tenant" and this issue was not addressed in his trust/will (because no one even thought of it), his interest in my home has become part of his estate and must be split with my siblings. Any recourse? Two of my sisters are estranged and bitter, would love to take part of my home from me. Help!!

**A: you are in such a predicament because your Dad was on title as a tenant in common rather than a joint tenant. The matter would have been easily resolved had your Dad sinply held title to the property with you in joint tenancy.

 

[ILLTEACHYOU]

So there is no recourse? What are the options?

 

[divgradcurl]

Homeguru correct me if I am wrong, but given the facts as you told them, your only recourse is to try and buy out your siblings' share of your house. Since your Father was a tenant-in-common, he had an interest in "your" house separate from your interest, which then passes after his death through will or probate. He also could have sold off his interest in the property to someone else (anyone else) during his life.

Not only will you have to try and buy out your siblings' to own your house in full, but if your Father's estate was large enough, you may have to pay inheritance taxes on the part of the property that passes to you...

As Homeguru pointed out, this could have been avoided had you been joint tenants, or at least if your Dad had willed his interest in the property to you, but now it looks like you are stuck trying to buy out your siblings. I wish you luck!

Also, not to rub salt in the wound or anything, but as tenants-in-common, your siblings will have rights to live in and use the house and property -- if you don't let them onto your property or into your house when they want, then you may be liable to pay them rent on their share of the property. It may be time for you to talk with a lawyer in your area...

I am not a lawyer, and this is not legal advice, not even close!

 

[HomeGuru]

Another option would be to file litigation or partition with the Probate Court. In a case where you paid all expenses and Dad was on title for accomodation purposes only, you can claim total or a greater percentage of equity ownership. Discuss these issues with your attorney.

 

[ILLTEACHYOU]

divgradcurl and HomeGuru, thank you for your advice! I will certainly try the partition option first...have an appointment with an attorney next week

 

[HomeGuru]

Good luck to you.