Expert Advice When You Need It Most

Intestate estate administrator selling home to sibiling. Can I do this during the probate process?

I am the administrator of my father's estate. He passed without a will and his only real asset was his home. The home currently does not have any mortgage on it and my sister would like to move in. She would like to take a mortgage in order to 'pay-off' my brother and I. A few questions:

1) Is this acceptable according to PA laws for me to do as administrator?
2) Will there be any problem if we 'sell' the home to my sister below market value?

I understand the estate taxes would most likely be valued according to the fair market value and we would plan on paying these with the money taken from the house in the form of her mortgage. Thanks.

Save

Attorney answers (2)

Reputation Level 14
You should have the home appraised to determine the fair market value, which will also be the value of the property for inheritance tax purposes. You may decide to sell it to her for less, but doing so must be agreed upon by the beneficiaries of the estate. You should make sure that the estate does not wind up short of money to pay creditors, or such an arrangement would be improper.
1 person marked this answer as good

Reputation Level 20
To answer your specific quesion, you can transfer this property during probate, but all beneficiaries must agree to it in writing. As the prior attorney, stated you need to have the house appraised. You need this not only for setting the value of the transfer to your sister and equalizing your interests, but also for inheritance tax return purposes. Remember, the value should be accurate to avoid problems with PA and to insure everyone gets their fair share.

Hope this helps.

LEGAL DISCLAIMER
Mr. Fromm is licensed to practice law in PA with offices in Philadelphia. He can be reached at 215-735-2336. He is featured as a 5Star Wealth Manager in the current issue of Philadelphia Magazine, November 2009 on page 123. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question.
Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency.

Other answers (1)

No photo

Latigo

Without proceeding upon the advice of an attorney competent and experienced in probate law, you be will foolishly treading among mine fields, my friend. So hire one, and among other things, obtain court approval of any proposed sale of estate assets pending probate and avoid the risk of incurring fiduciary liability.

Your proposal to pay any death taxes on the come raises a myriad of red flags!
2 people marked this answer as good

Can't find what you're looking for? Ask a Lawyer

Get free answers from experienced attorneys.

 
Ask now