Removing an executor?

[moosegirl]

What is the name of your state? Georgia

My father-in-law died last summer. His will provides his second wife two years to live in their home. However, they had a reverse mortgage that must be repaid within one year of his death. The property itself is the only asset of the estate, and the proceeds (minus the mortgage and fees) are to be split equally between the wife and the two sons.

Because the 2nd wife does not have the cash to repay the reverse mortgage, she put the home on the market. She is also the executor of the will, which has been probated. However, because there has been little traffic on the house, she is claiming now that if it doesn't sell she will just have to let the bank foreclose. Clearly, this is unacceptable to the two sons.

If the sons use their assets to repay the reverse mortgage, would they be able to insist that she move out at that point or does the two-year clause in the will still hold?

Based on her willingness to simply let it go into foreclosure, can they have her removed as executor?

Do they, as beneficiaries, have any say in how the marketing/sale of the house is handled? (Pricing, etc.)

What are her responsibilities to the sons as far as sharing information? At the moment, she won't even tell them the name of the financial institution that holds the mortgage.

Thank you for any input.

 

[pojo2]

Because the 2nd wife does not have the cash to repay the reverse mortgage, she put the home on the market

So the sons would rather see the bank TAKE the property back to satisfy the reverse mortgage. Sound like she is acting pretty prudently to me.

the proceeds (minus the mortgage and fees) are to be split equally between the wife and the two sons.

...

If the sons use their assets to repay the reverse mortgage, would they be able to insist that she move out at that point or does the two-year clause in the will still hold?

They going to buy HER interests out?

 

[moosegirl]

Thanks for your input. Let me clarify.

So the sons would rather see the bank TAKE the property back to satisfy the reverse mortgage. Sound like she is acting pretty prudently to me.

No, the opposite. The sons do not in any case want the bank to take the property. The note will come due in 10 weeks and it's pushing the timeframe where a contract/sale/closing will occur in time to provide the assets needed. So, legally, I'm trying to find out what the options are. The proceeds from this sale will be her only assets going forward, so it's in her best interest to maximize the profits, as well.

The sons can afford to repay the note in full; they cannot afford to buy her 1/3 share of property from her. However, if they have to satisfy the note fully (which, at this point, includes $20K extra that she drew off it after his death) they would like to have control over the marketing and timing of the settlement. What they don't want is to bear the full financial responsibility for the home while she lives there for an extra year.

[My personal opinion is that she's using the threat of foreclosure to get them to pay it off; she's upset because she asked the sons for a larger share of the proceeds (essentially $50,000 from each son) so she can "continue to live like I'm used to" and they flatly told her no.]

Her own children agree she should never have been named executor. That's not a slam; she's just from an era where the man "took care of all that", has never held a job and isn't remotely financially-minded. Coupled with the fact that the death was unexpected and devastating to her, obviously; she very much was in a "I'll think about that tomorrow" mentailty about most of the details and had to be pushed to probate the will, etc. The sons don't necessarily want to deal with it themselves, but just don't feel she's the right one to be doing it and would prefer someone else appointed. IF that's even an option...?

Again, I appreciate the input!

 

[pojo2]

One thing is clear the reverse mortgage will have to be paid under the current terms of what you have described as the contract.

His will provides his second wife two years to live in their home

Do you mean his second wife OF 2 years or that she is allowed to live there for 2 years?

I think before anyone does anything the 2 sons should consult with an Atty BEFORE making a costly mistake.

Curious though why do they want to keep the property instead of just selling it and getting the matter over with, potential for greatly appreciating?

Her 1/3 will have to be ironed out someway in all this no matter what happens.

Why not get an appraisal by someone totally uninvolved, determine the reverse amount to be paid, sell the property and divide the leftover by 3?

Just random thoughts so go get legal advice!

 

[moosegirl]

They were married for 7 years. He specified in the will that she could in the home for two years after his death. Which was ... nice? ... but I don't know where he thought she'd get the money to pay off the mortgage without having to sell.

Why not get an appraisal by someone totally uninvolved, determine the reverse amount to be paid, sell the property and divide the leftover by 3?

That's exactly what's supposed to be happening now. The question is what happens if she doesn't close a sale by the date the note is due.

They don't want to keep it; they want it to sell. She has it listed, but it's overpriced for the neighborhood and not decluttered at all (and it is cluttered) to be appealing. I don't think that's malicious; they both had an inflated sense of their home's value and decor. LOL! She loves her taste, so why won't everyone? But her taste is very strong, so I believe there's a small segment it will appeal to. Add in the overpriced part and the chances of it selling in time are slim.

The goal in having her move out would be so that it could be staged for sale, priced appropriately, etc. Legally, though, I'm not sure the sons have any say in any of this. However, she's the one saying she'll "just let it go into foreclosure", which does not seem like good stewardship for an executor. And, as I mentioned, is not at all forthcoming about any of the financial details of the estate. Just says in response to any question "We'll deal with that later."

They have called the attorney who wrote the will and who has helped her with probate. However, he's close enough to her that he went with her to scatter the ashes, so I'm not sure he's as impartial as one would hope. And, at the moment, isn't returning their calls. Time for someone independent, I suppose.

Again, I do appreciate your time and suggestions!

 

[moosegirl]

I don't know where he thought she'd get the money to pay off the mortgage without having to sell.

Well, I answered my own question on that one. Re-read the will and realized it was written before the reverse mortgage was taken out.

Any input on how much communication she, as executor, "owes" the sons?

Thanks!