How to protect our inheritance and still be kind about it...

[allfiredup]

What is the name of your state (only U.S. law)? GEORGIA

My grandmother is terminally ill and isn’t expected to survive more than a few more weeks. She has been fighting lung disease and crippling rheumatoid arthritis for years. We learned on Thanksgiving day that she has an inoperable cancerous tumor that has perforated her stomach lining. It is causing her to hemorrhage at a gradually increasing rate and she will die from the loss of blood at some point in the next few weeks....

My father is an only child and my sister and I are the only grandchildren. My grandparents were always more like our ‘other’ set of parents to us because we grew up next door to them and ate dinner with them every night. This is also evident in my grandmother’s will leaving one-third of her estate to each of us.

The vast majority of her estate is real estate- her home and two small ‘bungalows’ in the same neighborhood. The total value of life insurance, investments and any other cash or cash equivalents will be no more than $40k after final expenses are paid.

My dad is married and that is one of the main reasons I need some advice on a few things. He and my step-mom were married in 1990, separated from 1999 to 2001, divorced in 2004 and remarried in 2007. Whether they will remain together for the rest of their lives is a concern for me in how we handle the property situation.

My grandmother’s will states that my dad can choose to live in the house OR sell it and divide all proceeds equally between the three of us. BUT, as I read it there is no provision to provide for a situation where dad chooses to live in the house for a period of time, then sells it- which should be the same three-way split. Or if he chooses to live there for the rest of I life, can my grandmother’s will state that it be divided 50/50 or would he need to will it to us???

What about how to title the property if dad decides to live there? Should all three of us share the deed [right of survivorship, or similar] or? Or should it just be in dad’s name and have him create a will leaving us the house to split 50/50. My fear with the latter is that he could be persuaded to change it prior to his death

My two primary objectives are-

A] Obviously, the most important is to protect any future inheritance for my sister and me. It needs to be protected in case my dad got divorced or if he died prior to my step-mom. I am also concerned about any possible way that my step-mom could manipulate my fathers’ ownership rights to steal our shares and gain 100-percent ownership for my father and/or her. Is there any way we can prohibit dad, step-mom or anyone else from borrowing money against the home???

B] Because I do have a conscience and I am a decent person- what would be the safest way to provide for my step-mom to continue living in the house for the rest of her life if my father dies first? Alternately, the house could be sold and she would inherit dad’s third.

I apologize for eing so verbose. I’ve needed to get this posted and off my mind for weeks now but I’m just finally getting around to it. I haven’t slept since I got up at 10 am on Friday [41hrs and counting], so my brain is trying to go to sleep even if the rest of me am not quite yet. I can honestly say that working an Alaskan Crab Boat is an easier job than being a Caregiver.

Thanks in advance for any advice or info.

Jasom

 

[anteater]

My grandmother’s will states that my dad can choose to live in the house OR sell it and divide all proceeds equally between the three of us. BUT, as I read it there is no provision to provide for a situation where dad chooses to live in the house for a period of time, then sells it- which should be the same three-way split. Or if he chooses to live there for the rest of I life, can my grandmother’s will state that it be divided 50/50 or would he need to will it to us???

What exactly does the will say regarding ownership if Dad decides to live there?

It seems a bit late to be talking in terms of "can my grandmother’s will state."

 

[curb1]

Is grandmother willing to change her will to facilitate the problems you see?

Wouldn't it be simple for her to will the house to you and sister and then you could let father (and step mother)live there if that is the desire. Or, you and sister could sell the house and split the money with father.

 

[justalayman]

I think grandmother already considered the situation in full:

This is also evident in my grandmother’s will leaving one-third of her estate to each of us.

the house, unless specified as not being included in the above, is part of her estate. That means, you are still entitled to your 1/3 regardless of what dad does with the house. If he chooses to live in the house, you and your siblings 1/3 shares will be derived from other assets of the estate if there is enough assets without the house dad would be living in. If it takes part of the house father is living in to fulfill your bequests, then dad cannot simply do as you suggest. You would be put in title as a fractional owner in whatever share would represent what is owed you.

Some of the suggestions you are making are not possible unless the will allows for such.



I would strongly caution you if you consider altering the will at this point. If she is in as poor health as you suggest, she may not be capable of being of clear enough mind to alter the will. That could allow any new will to be contested.

Given the amount of time you are limited to, I would suggest running to a lawyers office who can review the will and interpret it and give you an opinion as to the scenarios possible.