Settlement with sibling

[Capn Crunch]

Hello - I reside in Milwaukee, WI.

My question - my parent has a trust with real estate property. My sibling and I are to get 50/50 of all assets of the estate/trust.

I will be inheriting/keeping one of the properties appraised at $143,500

The estate paid a payment of $75,000 to my sibling about a year ago. (I haven't received any payments from the estate)

How would one figure out how much that I (or the estate/trust) owes my sibling for them to get their equivocal share of this asset?

Thanks!

 

[LdiJ]

Hello - I reside in Milwaukee, WI.

My question - my parent has a trust with real estate property. My sibling and I are to get 50/50 of all assets of the estate/trust.

I will be inheriting/keeping one of the properties appraised at $143,500

The estate paid a payment of $75,000 to my sibling about a year ago. (I haven't received any payments from the estate)

How would one figure out how much that I (or the estate/trust) owes my sibling for them to get their equivocal share of this asset?

Thanks!

Is your parent still living? How is the house currently titled? I can think of many other questions that would need to be answered in order to give any reasonable answer.

 

[Capn Crunch]

Parent is deceased and property is title to trust.

 

[anteater]

Let's ask a few more questions...

My question - my parent has a trust with real estate property. My sibling and I are to get 50/50 of all assets of the estate/trust....

The estate paid a payment of $75,000 to my sibling about a year ago.

Are you saying that there is both a trust and a probate estate? And that the trust contains a piece of real estate? And that the probate estate contains (or contained) other assets? And that your sibling received $75K from the probate estate, but you received nothing from the probate estate?

And that the trust document states that all assets in the trust should be split 50/50? And that the will (or by intestate succession) states that all assets subject to probate should be split 50/50?

 

[justalayman]

Let's ask a few more questions...



Are you saying that there is both a trust and a probate estate? And that the trust contains a piece of real estate? And that the probate estate contains (or contained) other assets? And that your sibling received $75K from the probate estate, but you received nothing from the probate estate?

And that the trust document states that all assets in the trust should be split 50/50? And that the will (or by intestate succession) states that all assets subject to probate should be split 50/50?

Now breathe antie.

The estate paid a payment of $75,000 to my sibling about a year ago

The estate, as in active probate estate?

where did the money actually come from?

was it a early distribution of his inheritance? Was it a loan? Was it a gift?

is the property you are retaining in the trust or in the probate estate?

 

[anteater]

Now breathe antie.


The estate, as in active probate estate?

where did the money actually come from?

was it a early distribution of his inheritance? Was it a loan? Was it a gift?

is the property you are retaining in the trust or in the probate estate?

I was just getting to those.... But oxygen deprivation set in.

 

[Capn Crunch]

No probate estate.

The subject property and checking account are both in the trust. Yes, the sibling received $75,000 (early distribution) from the trust checking account as there was plenty of money in the account that didn't need to sit in checking. Again, NO PROBATE involved here.

Yes, the trust and will documents state that all assets are split 50/50.

 

[justalayman]

So toss a marker in the pot worth $75k. Then divide everything in half. Give the marker to your brother and the rest of his half in whatever form of valuable asset it happens to be. You get the rest.

 

[Capn Crunch]

So toss a marker in the pot worth $75k. Then divide everything in half. Give the marker to your brother and the rest of his half in whatever form of valuable asset it happens to be. You get the rest.

Not sure what tossing in a marker means. But what I'm asking is how to settle the math. I was thinking if you take the amount that was paid to sibling $75k+$150k (total prop value) =$225k, then divide by 2 =$112,500 and subtract sibling payout of $75k (112,500-75) meaning I have to pay $37,500 out of my own personal account. Does this math seem right?

 

[justalayman]

The marker represents the $75k brother already got. Once that is in there you are back to square one. You then calculate the split. The marker is used in place of the $75k brother already got so his distribution now will equal yours minus $75k

But now I see you are tossing in more numbers due to the house being more than 50% of the total trust value. So, start with putting the marker in ($75k)


Calculate the split. If the house is worth more than your share, subtract your 50% share from the value of the houssw. The remainder is what you owe brother out of your pocket (not trust money)

 

[LdiJ]

Not sure what tossing in a marker means. But what I'm asking is how to settle the math. I was thinking if you take the amount that was paid to sibling $75k+$150k (total prop value) =$225k, then divide by 2 =$112,500 and subtract sibling payout of $75k (112,500-75) meaning I have to pay $37,500 out of my own personal account. Does this math seem right?

That math is right if the house and the 75k are the sum total of the estate. However, you said the house was 143,500...so that throws off the math a bit.

 

[justalayman]

That math is right if the house and the 75k are the sum total of the estate. However, you said the house was 143,500...so that throws off the math a bit.

it shouldn't be the sum total, unless there were considerable other expenditures or disbursements to take into account based on this:

Yes, the sibling received $75,000 (early distribution) from the trust checking account as there was plenty of money in the account that didn't need to sit in checking.

If there were other disbursements from the trust, depending on what they were for, it may affect the result.

but using the original numbers OP provided, I get OP owes brother $34,250 out of his pocket.