Inherited “tenants in common” property—Help!

Inherited “tenants in common” property—Help!

Washington D.C. · Member since 2018 · 3 posts · 1 vote

Greetings!

When my mother passed away, she was a co-owner of an office space condo property. Because it was a “tenants in common” property in Virginia, I became co-owner of the property as her sole heir.

This was in 2013, and my uncle (the other owner, her brother) has been less than forthcoming with information concerning the property. Looking through my mother’s tax records, she got roughly $10k/year in revenue from rental income on the property. I have only ever received $1,000 once in 2014 & once in 2016. My uncle recently informed me that he is going to take a “salary” from the property since he is handling everything. However, I offered to help take care of things, pay taxes, necessary renovations, etc. He has not allowed for me to do any of this. He also has never provided me with documents such as financial information, deed, etc. even though I have asked several times throughout the years.

All of this being said, I am wondering if anyone can advise on my rights and responsibilities concerning this property. Because my mother had a will & trust, it stayed out of probate upon her death. Which also means that the property deed is still in her name, nearly 6yrs later.

I never fought any of this with him in order to “keep the peace” in our family (he felt entitled to the entire property and was gravely disappointed when he found out my mother’s portion did not legally go to him). However, he is also the trustee of my mother’s estate (I am the sole beneficiary) and I have discovered recently that he has been mismanaging that as well. For this reason, I would like to gather more information on what my next steps should be as co-owner of this property.

Step one that I have already taken is obtaining a copy of the deed and title for the property. From here, however, I am lost. What—if any—responsibility does he have to report financials to me as co-owner? Do I need to file paperwork to have the deed placed in my name (rather than my mother’s name)? And is it even possible to do so this many years later?

Ideally, I would like to sell my share (50%) to him. Or, I would like to help contribute to costs as well as collect revenue from the property (there are tenants in there now & have been for the last 6yrs). If that were to be the case, however, I would like copies of the lease agreements, financials, tax information, etc. He has been refusing to provide me with this information though, so I would also need to know what legal right I have to this information and/or how to find it myself.

Any advice or help on this would be greatly appreciated. I’ve done quite a bit of research on it myself, but google has only been able to tell me that I am indeed the rightful co-owner (which I was already informed about at the time of her death), but nothing beyond that.

Likewise, if anyone has advice on whether I should sell my portion to him or keep it as an investment property, I would appreciate that as well.

I hope this wasn’t too confusing! Please let me know if I need to provide any further information about it.

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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
7y

I would have thought at a minimum you need the information to make sure your taxes are filed properly.  There has to be money coming in if not, he would have tried to sell it.

I don't know enough about trusts or estates to offer any help.  I thought the role of the trustee ended once everything was settled and if your mom passed away in 2013, it should have been settled by now.

I'd suggest talking to a lawyer, possibly the same one that handled her estate as there seem to be concerns about how that is being handled.

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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    7y

    I would have thought at a minimum you need the information to make sure your taxes are filed properly.  There has to be money coming in if not, he would have tried to sell it.

    I don't know enough about trusts or estates to offer any help.  I thought the role of the trustee ended once everything was settled and if your mom passed away in 2013, it should have been settled by now.

    I'd suggest talking to a lawyer, possibly the same one that handled her estate as there seem to be concerns about how that is being handled.

  • Lance LvovskyPro Member
    Accountant · Fort Lauderdale, FL · Member since 2013 · 1k+ posts · 753 votes
    7y

    @Kam Jefferson

    Didn’t read your entire post. Too long and it is tax season. But for tax purposes there would have been a step up in basis and so depreciation would have been adjusted at year of death. Something to look into.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    7y

    My advice....talk to a lawyer and don't rely on some people on the internet to offer you solid and reliable advice on a situation like this...

    This is gonna get messy......your uncle obviously resents you being involved and has probably been stealing your legal cut of this property.

    Talk to a lawyer ASAP...

  • Washington D.C. · Member since 2018 · 3 posts · 1 vote
    7y

    Thank you! Good advice :) I have contacted a lawyer & have a meeting scheduled for next month, but wanted to come prepared to the meeting. I appreciate your help and insight!

  • Columbus, OH · Member since 2018 · 218 posts · 134 votes
    7y

    I am not a lawyer but I am glad you have a meeting scheduled with one. I imagine the lawyer is going to prevent you with a few different options. It sounds like your uncle has been stealing from you. I think you need to decide what price you are willing to pay to "keep the peace". You could probably drag this into court and get money that is owed to you, or you can cut your losses, keep the peace and move on. Personally, I would fall somewhere in the middle. I would definitely want to make sure the estate is being handled appropriately but would not want to continue a long term partnership with him. Lastly this may be a situation where you want to check in with a few lawyers. If this is going to drag out, make sure you are working with someone you feel confident with. Good luck!

  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    7y

    I suggest you get an attorney too.  

    To not waste time with the attorney you should bring a copy of the Trust as well as your mother's will and the house deed and any records such as her old tax records and account balances/statements that show the assets value and income based on when your mother passed, if you have these items.

    You might as well get everything straightened out in one action, rather than deal with the property and still have him as the trustee for the trust.

    You do need to see if the property was titled to your mom or to her trust.  If it is titled in the trust's name, then you do not need to retitle it.  If it is in your mom's name, it should be retitled to you, or at least her half.  THEN you can sell it to him, buy him out and sell it open market, or together sell it, or have the court ordered it sold.

    You likely could sue him for you loss of income, and you likely have some tax deductions and bills you should have paid such as half of taxes, repairs, insurance. There likely is an account for major repairs called CAPEX and minor repairs so look for a bank account that is shared with the uncle too.

    Now for the Trust, it will have him as the new Trustee once your mom passed, but it may have a way to change that to you, sometimes at a certain age, or happening like marriage.  IF not, you can have your uncle removed for not acting in the best interest of the beneficiaries--by law he must act in your interest not his.  So discuss removing your uncle from this role and replacing it with you, especially if you are the sole beneficiary, or have a bank or other person as the Trustee if you are young and/or cannot do it. This may take court action, but some attorneys are good at explaining to cheats that if they step down from the role and return part of their theft criminal charges may not be pursued and then bad folks will give up the role.

    The Trust MUST file taxes in most cases under a EIN umber.  You should have your attorney or tax person find that number and get a copy of all the taxes filed for the trust since your mom passed away.  This may let you see bank accounts or other assets, you do not know about and any money taken in or out of the trust.  Likely your mom filed Trust taxes under her SSN mixed in with her regular taxes when she was alive.

    These are just suggested topics that may he worth bringing up with the attorney.  I am not trying to be bossy, just give ideas of things that you may want to discuss.

    I have been through this with my relatives a few times now.  The last time, I let everyone know to play nice with me or that is the end of the relationship with me.  I am done playing nice to cheats, thieves and mean people.  Only one family made the wrong choice.  Seriously think about if it is worth being cheated, taken advantage of and treated like dirt to keep the peace with people that do not care about you.  And take this sentence with the understanding that I am old, and did this too many times with ungrateful thieves....and I an happy without contact from such people.  If you will miss the person, maybe you can be more accommodating than I.

  • Raleigh, NC · Member since 2017 · 347 posts · 94 votes
    7y

    @Lance Lvovsky

    Why would inheriting it cause a change in depreciation rates

  • Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y
    Originally posted by @Chris C.:

    @Lance Lvovsky

    Why would inheriting it cause a change in depreciation rates

    It resets so if they had sold the year their mother passed they’d owe no Captial gains on it.  But then depreciation restarts for the individual whom inherited the property.  It isn’t free forever.  

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Be prepared emotionally to have your lawyer take over your case. Step back and allow him to do what is necessary. Your uncle has been stealing from you and it is going to get messy. It will be your decission whether you get what you deserve or walk away. Ultimatly you will need to get out of the partnership.

    When it come to money or family you need to make the hard decisions. I choose money and  never partner with family.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    7y

    You did the right thing to get a lawyer and there is a lot to ask them.   

    A couple of additional points:

    - act sooner rather then later if he hasn't paid you there are other thing he may not have dealt with since 2013

    -- Before you see the lawyer maybe you want to send an official written request for documents if you haven't already (friendly, specific with a list) , you probably won't get a response but if you have only asked to date it will help document your request. 

    - I don't know about trusts but her personal assets and final tax return should have been filed make sure it was. 

    - Organize and prioritize your lawyer questions and make sure you have the right type of lawyer for the issues. They aren't cheap.  At minimum it seems you need to see about removing him as executor if that even matters now.  

    - Have a rough idea of the property value before you go to the lawyer, that will help inform your decision on how far to go legally. 

    Personally your option is to sell ,  buy him out, or walk away.   He obviously doesn't want you as a partner.

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