Probate Loans!

Hi. Here is my situation. Me and my two siblings inherited a home when our mother passed away in year 2000. I am now 24 years old, my brother is 18 and my sister recently turned 16. My mother's insurance paid off the home mortgage and is now under a deed with all three of our names including the assigned executor which is our aunt (mother's sister). We are all living separately now where I am living with my girlfriend, my brother is living with our father (legally divorced from mother), and sister is living with grandfather in our home. I am currently working full time at 40 hours per week and going to school 4 times a week and in need of a cash loan of approximately $10,000 - $15,000 for bills, school, pay off debt. Our home is worth approximately $300,000 - $350,000. I have been researching on probate loans and heir loans which state they will fund you cash but will have to assign part of my inheritance to them. How exactly will that work when I will only own 33% of the home which is still currently in probate until my sister turns 18 yrs old. What if we do not decide to sell the home? What will happen if my brother and sister agree for me taking a loan against my inheritance and executor (aunt) declines request. What actions/step should I take if this situation should happen? Thank you for your time.

BlondiePB said:

US Law Only - WHEN POSTING A QUESTION, YOU MUST INCLUDE THE NAME OF YOUR STATE

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It doesn't matter which state because if you read the poster's facts, he has no "inheritance" and "probate loans" are out of the question.

seniorjudge said:

It doesn't matter which state because if you read the poster's facts, he has no "inheritance" and "probate loans" are out of the question.

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Louie Two Fingers down at the Bada Bing Club handles these types of loans.

OP -- Are you and brother getting paid any rent for your 1/3 interests? Are you paying any of the property's expenses?

Where will your sister live if the home is sold? You need to be asking your siblings if they would be agreeable to selling the home in the future after she becomes an adult, but don't count on the home as a source of income now.

probate

Thank you for your replies. At this time, my brother and I are not receiving any funds/rent for 1/3 of our interests. The persons currently living in our home is my sister, my uncle (mother's brother), my grandfather, his wife and their 11 year old daughter. I am not looking into selling the home in the near future when my sister becomes of legal age. My brother and I are not currently paying any home expenses such as property tax for the last few years. The persons living in the home are paying the necessary bills such as gas, water, cable, phone, internet. When my mother was still living, she let my grandfather live there without paying for rent in return of helping her take care of us while she was a single mother. Should my brother and I be receiving any interests/funds/rent from the others living in the home. Since my brother and I are currently not paying for any bills, necessities, tax on the home: are we in danger of having the executor make the decision of having only my sister on the actual deed once she turns legal age. Is the executor able to add herself on the deed? I am not in good terms with the executor.

Thank you for your replies.

Oh yeah, I am in California. Sorry about that. I didnt know it was mandatory.

You have something of a contradiction in your posts.

...My mother's insurance paid off the home mortgage and is now under a deed with all three of our names including the assigned executor which is our aunt ... How exactly will that work when I will only own 33% of the home which is still currently in probate until my sister turns 18 yrs old. [/B](mother's sister).

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Seven years after mother's passsing and with a deed containing the beneficiaries' names, one would expect that the probate case has been closed. I think that everybody here assumed that you meant that your aunt was appointed "guardian" (or whatever it may be called in CA) of your minor sister's interest. I believe that is why seniorjudge said,

...he has no "inheritance" and "probate loans" are out of the question.

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You've received your inheritance.

The rent/expenses question was a long shot. In theory, you and brother should receive rent for the use of your 2/3 interests and be responsibile for 2/3 of the expenses/taxes. Also, one would expect that a fair market rent would be greater than the taxes/expenses that you would be responsible for, producing some positive cash flow. But, most people would consider the present arrangement an equitable tradeoff. And, if you were to insist on that, you would likely set off a firestorm that just may not be worth it.

....are we in danger of having the executor make the decision of having only my sister on the actual deed once she turns legal age. Is the executor able to add herself on the deed?

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Not legally.

The problem that you and your brother might as well begin to face now is what you are going to do in the future. If sister and other relatives are going to continue to reside in the home under the current arrangements, you and brother essentially have a "stranded" asset, producing no cash flow. I think that you will find lenders hesitant to lend against a 1/3 interest in a home. What happens if sister, uncle, grandfather... experience financial difficulties and can't handle the expenses/taxes themselves? It's a recipe for conflict. Best to do some planning now.

seniorjudge said:

It doesn't matter which state because if you read the poster's facts, he has no "inheritance" and "probate loans" are out of the question.

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That too...

Why would you charge rent to a minor sister with no means of support? That is unethical.

Dandy Don said:

Why would you charge rent to a minor sister with no means of support? That is unethical.

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Read the OP's posts. Half the extended family is living there.

It is hardly "unethical" that the OP should receive some benefit from the inheritance. Whether he wishes to take a blowtorch to family relationships to do it is his decision.