lundi 1 juillet 2019

Buying Out Brother's Interests in a Property Held in Trust

My question involves estate proceedings in the state of: California.

My brother and I are estranged and have a horrific relationship.
My mother knew that when she made her trust. My mom passed away
recently. There is an outstanding restraining order preventing
my brother from coming near me, my mom's house, or my mom (for
that matter). It will remain in effect until 2022. I was living
in my mother's house when she passed away, and I still reside
there.

My mom wanted me to have the option to continue living
here when she passed away. She wanted to remove any power for
my brother to negotiate or influence how the trust would be
settled in any way whatsoever.

My mom's house is titled to her trust. The trust declares me
and my brother as having a 50/50 interest in her trust. There
are no other beneficiaries. I am the trustee. There is a trivial
amount of cash left. The house is basically her only noteworthy
asset and there is no mortgage.

The trust includes a power to self-deal for the trustee, and
the discretion to distribute benefits in cash or in kind.

I have engaged a certified appraiser who does appraisals
for probate courts to establish a fair market value to resolve
disputes between beneficiaries that could arise out of situations
like this.

So, what I would like to do, simplistically, is take the fair
market value, plus what little cash my mom has remaining (if
any), to establish an initial value for the trust. Then subtract
all debts and expenses. What's left will be split. My brother
would get his share in cash, and I would get my share
in kind.

My brother, as you might imagine, doesn't like this. He wants
to direct me in the specifics of how this trust is settled. He
doesn't have the means to buy me out, and he couldn't even live
here, legally, until 2022, even if he did.

I know the standard advice would probably be to get him to sign
an agreement to this approach, but there is just no way on earth
he would ever do that. I also know the path of least resistance
would be to move out and sell the house. But my mom didn't want
that, and I don't either.

I would appreciate any comments or suggestions about my hoped
for approach. And if this is a possible path forward, is it
really just as simple as putting half the net value of the trust
into a trust checking account and then pay it out to my brother?

From a tax standpoint, would my cost-basis for the house be the
full value of the appraisal? Or would it be something different?
What I mean is I basically already own half of the house. Since
I will be selling appreciated stocks to raise the cash, I'd
rather not sell enough assets to deposit the entire value of the
house, only to turn around and give half of the cash back to
myself.

Any thoughts or comments would be sincerely (and desperately)
appreciated.


Buying Out Brother's Interests in a Property Held in Trust

Aucun commentaire:

Enregistrer un commentaire