My question involves real estate located in the State of: Indiana
My 3 siblings and I are the beneficiaries of my mother's estate; our brother is Successor Trustee. She died 10 years ago and there is one vacant property still in the trust. The taxes were paid by the estate until recently. Although the Trustee lives near the land, the other 3 beneficiaries are out of state. For 10 years, he said he was trying to sell the land (his wife is the real estate agent) and nobody was interested, but we discovered he priced it several hundred thousand dollars above appraised market value and suspect he had no intention of selling it. Now he says the estate money is gone and the beneficiaries have to pay the taxes out of pocket; but he’ll do us a favor and buy the property from us.
He recently sold one business and wants to start a new one. He offered to buy 1/4 of the property, the most desirable part, at a fraction of the price he is advertising. We would get the remainder, which has less value, we would continue paying taxes, and have to sell it while residing in other states. We were presented with a hand-written amateurish contract with sections crossed-out, illegible things scribbled in, and a ton of contingencies (all in his favor); we also discovered he expected us to carry a 30 year mortgage with no payment for the first 5 years. In other words, he gets the land for free, can change his mind with no penalty, and doesn't pay us until he has a successful business. If the business doesn't succeed, we get nothing and the land might be tied up with debts from his failed business. We said no. He insists that the only remaining alternative is to subdivide and he will keep the part he needs for the business. Either way, he gets the parcel he wants for free and we don’t benefit. The other beneficiaries want to sell the entire property for fair market value and split the money; it’s a fair and impartial solution. At a reasonable price and with a real estate agent other than his wife, the appraiser feels we should have no trouble selling it. The Trustee claims we are being contentious, uncooperative, and are “throwing up roadblocks to a resolution;” so he is forced to subdivide, whether we agree or not.
Although the trust is a standard document and gives him broad powers (he has the right to subdivide), we think he has a conflict of interest, is violating his fiduciary duty, and this is a case of "self-dealing." Before searching for a competent legal firm in Indiana, spending a lot on retainers, and paying to travel there, we want to verify we have a valid case and will recoup enough money to at least cover legal expenses. Can we stop him from subdividing? How can we change real estate agents so it can be sold if he signed a contract with the broker? We paid taxes for 10 years while he purposely avoided selling the property; does he have to pay back the tax money? How does a court calculate what he would owe us? We are all seniors and can't afford expensive litigation or spending too much time resolving it, but he isn't leaving us a choice.
My 3 siblings and I are the beneficiaries of my mother's estate; our brother is Successor Trustee. She died 10 years ago and there is one vacant property still in the trust. The taxes were paid by the estate until recently. Although the Trustee lives near the land, the other 3 beneficiaries are out of state. For 10 years, he said he was trying to sell the land (his wife is the real estate agent) and nobody was interested, but we discovered he priced it several hundred thousand dollars above appraised market value and suspect he had no intention of selling it. Now he says the estate money is gone and the beneficiaries have to pay the taxes out of pocket; but he’ll do us a favor and buy the property from us.
He recently sold one business and wants to start a new one. He offered to buy 1/4 of the property, the most desirable part, at a fraction of the price he is advertising. We would get the remainder, which has less value, we would continue paying taxes, and have to sell it while residing in other states. We were presented with a hand-written amateurish contract with sections crossed-out, illegible things scribbled in, and a ton of contingencies (all in his favor); we also discovered he expected us to carry a 30 year mortgage with no payment for the first 5 years. In other words, he gets the land for free, can change his mind with no penalty, and doesn't pay us until he has a successful business. If the business doesn't succeed, we get nothing and the land might be tied up with debts from his failed business. We said no. He insists that the only remaining alternative is to subdivide and he will keep the part he needs for the business. Either way, he gets the parcel he wants for free and we don’t benefit. The other beneficiaries want to sell the entire property for fair market value and split the money; it’s a fair and impartial solution. At a reasonable price and with a real estate agent other than his wife, the appraiser feels we should have no trouble selling it. The Trustee claims we are being contentious, uncooperative, and are “throwing up roadblocks to a resolution;” so he is forced to subdivide, whether we agree or not.
Although the trust is a standard document and gives him broad powers (he has the right to subdivide), we think he has a conflict of interest, is violating his fiduciary duty, and this is a case of "self-dealing." Before searching for a competent legal firm in Indiana, spending a lot on retainers, and paying to travel there, we want to verify we have a valid case and will recoup enough money to at least cover legal expenses. Can we stop him from subdividing? How can we change real estate agents so it can be sold if he signed a contract with the broker? We paid taxes for 10 years while he purposely avoided selling the property; does he have to pay back the tax money? How does a court calculate what he would owe us? We are all seniors and can't afford expensive litigation or spending too much time resolving it, but he isn't leaving us a choice.
Co-Ownership: Dispute Over Inherited Property
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