rights of co-heirs

[rogare]

my sister and I inherited a house in illinois from our parents . I live out-of-state , while my sister lives in the house alone. She pays for the utilities (heat, electric, phone, etc.), but bills me for one-half of the property taxes and house insurance expenses, which cost me about $2000 per year.

I store some of my belongings in the house, but otherwise have no contact with the house, and receive no income nor other financial benefit from the property.

Is this an equitable arrangement, or should my sister pay me rent for my half-interest in the
house, and/or pay the entire amount for taxes and insurance(without reducing the value of
my half of the property)?

 

[advisor10]

3-16-2002

DEAR ROGARE:

You would have to crunch the numbers to figure out how or whether you would come out ahead.

How much is the house worth?
I've seen a book that says monthly rental should be calculcated at 1% of the total value of the house, but I guess that is just a ballpark figure.

The main thing you need to find out is if your name is officially listed on the title as co-owner along with your sister. That should have been done during probate. If it wasn't done then, then you need to have it done now to avoid complications if your sister should die. Has your sister made out a will? What do you all intend to happen to the home in the future? Pass it on to another relative? Sell it to someone else?

Your sister should probably be paying you half the rent, but that option is probably not very agreeable to her since she views herself as co-owner and thinks she should not have to pay for a place where she co-owns. Really if she could afford it she should offer to buy you out (pay you for your half of the total value of the home). But it looks as if a reasonable compromise/equitable deal has been set up the way you are doing it now.

SINCERELY,

advisor

 

[rogare]

response to advisor

Thank you for your answer. The house is worth about $100,000. the house is in my name alone, but we have a land trust with a local bank in which we are named as tenants-in-common.

My sister can afford to buy me out, and I like this idea, as it would end the yearly drain on my finances and provide needed capitol. I have hesitated to ask for a buy out, because my sister has shown a tendency to destroy whatever estate property I show an interest in. For example, she had the family cat put to sleep without my consent when I indicated I might want it. Likewise, some of my parents' jewelry was "lost" when I said I wanted those pieces. and there are other examples.

in essence, I feel sort of trapped into having to pay my sister for house expenses, because I fear that if I ask for my share, she may vindictively destroy or "lose" more estate property, even the house itself(she owns a second home out-of- state, and is near retirement).

any suggestions would be greatly appreciated.

rogare

 

[advisor10]

4-5-2002

I don't think anyone has any magic answers when there is a kooky, nutty sister involved. Too bad.

What happens to the house when she dies? Only thing I would do if I were you would be to ask her if she would be interested in selling the house to someone else (that way you and she would benefit financially), but she probably knows she has a good arrangement going (not having to pay rent) and is not going to give that up for anything.

SINCERELY,

advisor