Real eastate value

[stannan]

What is the name of your state? Virginia

Is it possible to value property in a will the value you think it is worth no matter what the actual value is? Ex: If a house is valued and taxed at 300+k but you think it should really only be 100k can you state in your will that the amount to be divided between surviving children be 100k? Plus this gives an added benefit of having one child being able to buy the house from the others (as stated in will that he/she has first chance to buy it from the others before it is offered on the open market) at an incredibly reduced cost.

 

[BelizeBreeze]

What is the name of your state? Virginia

Is it possible to value property in a will the value you think it is worth no matter what the actual value is?

Of course it's "POSSIBLE"

Ex: If a house is valued and taxed at 300+k but you think it should really only be 100k can you state in your will that the amount to be divided between surviving children be 100k?

Of course you can. However, when the home is sold what will happen to the rest of the funds?

Plus this gives an added benefit of having one child being able to buy the house from the others (as stated in will that he/she has first chance to buy it from the others before it is offered on the open market) at an incredibly reduced cost.

guess what? You try this you'll invalidate the will. no judge will allow such a manipulation.

 

[stannan]

Thanks for the reply. This is the exact situation we are facing now. Of course the value difference between the actual value and the value stated for the sibling to buy are of much greater difference. There is no extra. The sibling gets the house by buying the rest out at the stated value and it goes to them completly. We were just wondering if we had any chance of fighting it by perhaps contesting or if we would be wasting our time.

 

[BelizeBreeze]

Thanks for the reply. This is the exact situation we are facing now. Of course the value difference between the actual value and the value stated for the sibling to buy are of much greater difference. There is no extra. The sibling gets the house by buying the rest out at the stated value and it goes to them completly. We were just wondering if we had any chance of fighting it by perhaps contesting or if we would be wasting our time.

What EXACTLY word for word, does the will state as to the situation?

 

[stannan]

That the house will be valued at 116k or the value at current market prices which ever is lower and only said sibling shall be granted the chance to buy the property at 116k by offering each sibling an amount equal to 1/5 of 116K. If said sibling declines to make the offer then the property is to be sold at fair market value and the sale amount is to be divided equally between all children.

 

[tranquility]

Conditional wills are frowned upon, but I don't think they are illegal unless they evidence some purpose that causes or tends to encourage a disruption of a family relationship. I don't see that here. Just because some may get less if the person exercises this "option" for lack of a better word, does not make the will invalid. The decedent gave the property to the person with the privision to make sure the other heirs will receive something as well. I don't see a problem with the validity of the will.

For estate tax purposes, the house is worth what it is worth--regardless of what the will says. For income tax purposes down the line, I'm not sure what the basis of the house would be. My best guess would be that it is worth the person's share of FMV at death plus the amount paid to purchase of the other share's at the cost listed in the will. But, I can think of other arguments I'd make if he were my client. (Such as FMV at death.)

 

[BelizeBreeze]

That the house will be valued at 116k or the value at current market prices which ever is lower and only said sibling shall be granted the chance to buy the property at 116k by offering each sibling an amount equal to 1/5 of 116K. If said sibling declines to make the offer then the property is to be sold at fair market value and the sale amount is to be divided equally between all children.

I guess you didn't read my words. I said EXACTLY word for word. If you don't think this is important then neither do i.

 

[stannan]

Thanks again. There are some other things involved such as influencing by one sibling in their favor but that is another question. As far as exactly word for word other than putting 'said sibling' instead of a real name that is as close as I can remember it as I don't have a copy readily avail to me at this moment. Again thanks very much, you've been very helpfull. I know a lot more now than before.

 

[stannan]

Oh one last question....
Do the other siblings have to accept buy out or can they hold out to sell on the open market?

 

[BelizeBreeze]

without knowing exactly what the will says word for word I won't guess. As tranquility said, conditional wills are not readily accepted by the courts. However, to determine if this is such, and the extent to which it can be voided, we would need to know EXACTLY what the will states.

 

[stannan]

I'll do my best to get that paragraph down word for word and post it. Again you both have been a great help. I didn't even know this site existed. I'll post again as soon I as get it.