Reply to Parents wanting to leave $1M home to sibling

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[quote=Anonymous][quote=Anonymous]My parents have a home that is worth about $1M in a vacation destination, no mortgage. They mentioned leaving it my older sister because she doesn't have a house and we already have one. My house still has a mortgage and won't be paid off for another 20 years. I think it's unfair that they would just give it to her outright and leave nothing for me. I would like it left to both of us. How can this be done with the least amount of trouble for our families? Like after we die, could it be divided equally to our children? She has 2 and I have 2. Also, I don't wouldn't want anyone to sell it and if it could be kept in the family as a vacation home or rental I think it would be nice for generations to enjoy. If it were left to my sister, I suspect she would just sell the home and use the money to purchase elsewhere. How could it be done, where it's kept in the family and everyone owns it equally? Anyone have good/bad stories about their experiences? [/quote]

Ok here is what worked for my brother and me:

Aside:  We live in California, so we did this for tax reasons (inheriting the CA Prop 13 tax cap, which transfers from parent-child but not sibling-sibling so we didn't want to inherit the house jointly and then have me buy him out) but this can work for you for your purposes:

In their will, my dad left the house to me and the full market value of the house (valued back to the date of death) to my brother.  So let's say the house, on date of death was worth $1M.  My brother would get $1 of cash and stock etc.  However; if my dad's monetary estate did not have $1M in it, then I would take a mortgage on the house, and pay him off.  That way I inherited the full title.

And the valuation of the house actually happens after death; you just get the valuation to back it up to date of death given the market at that time.  Or you can do "date of death or six months after."

It totally worked.  And if I needed more $ than the mortage provided, I could use my own $ or take out a loan.  Because I needed full title.

HTH![/quote]

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