The process of administering an estate or trust can be fraught with intense emotions after a parent passes away. Complex sibling rivalries and tense family dynamics often surface as property is sold and profits are divided. In these situations, it’s normal to ask yourself, How is the sale of inherited property split between siblings? We are here to explain it so you can determine if someone is trying to block you from receiving your fair share.
At Gokal Law Group, we have helped countless beneficiaries enforce their rights and successfully recovered millions of dollars in settlements and trial verdicts for clients. Here’s what to know about how inherited property sales are split between siblings.
How Is the Sale of Inherited Property Split Between Siblings?
Several considerations come into play when answering this question. First, you have to consider the trust or will instrument.
Identifying who inherits the property per these documents is critical. If all siblings inherit a house equally, for example, then the proceeds from the sale will also be divided equally. However, if the document excludes specific siblings, they have no right to the profits.
If someone passes away without leaving behind a will or trust instrument to outline how they want to pass along their property, they are considered to have died “intestate” and the property must be distributed pursuant to intestate succession laws. Understanding California intestate succession laws is important because they govern what to expect.
If the decedent has no surviving spouse, the children will inherit everything and divide the profits of a sale equally. If they pass away with a surviving spouse and children, the spouse typically inherits half of the profits while the children evenly split the remaining property.
“It can get complicated if the will or trust designates specific percentage shares that are unequal between siblings. Add the emotional toll of losing a loved one, such as a parent, and these situations can deteriorate quickly. Communication can break down, and working with an objective third party like an attorney is essential.”
– Abbas K. Gokal, Partner, Gokal Law Group
Still, even the most straightforward situation can be riddled with conflict. For example, imagine a mother passing away with $250,000 in the bank and a home that is also worth $250,000. In this case, the mother is considering how she wants to divide her estate before she passes away and might think one of these two situations is easiest:
- One daughter inherits the bank account, while the other inherits the home.
- Both daughters inherit half of the bank account and half of the home.
In the first scenario, for example, one daughter might have an attachment to the home that causes tension and resentment or the daughter who inherits the home might feel short-changed because selling a home comes with substantial sales costs.
Regardless, litigation can easily follow in situations like this, though we advise pursuing mediation before that becomes necessary.
Related Article: The Emotional Toll on Siblings Contesting a Trust in California
When Can You Challenge a Sale of Inherited Property Split Between Siblings?
We’d be remiss if we didn’t explain exceptions or when you can contest the sale of inherited property split between siblings?
If the profits of a sale are not divided per the percentage shares outlined in the trust or will document, then you have grounds to challenge it. Refrain from assuming everyone is entitled to the same shares because this is not always true.
Also, if a trust or will was created or amended just before the decedent passed away and you have reason to suspect it was created under undue influence, incapacity of the grantor, or other suspicious circumstances, you can challenge the distribution of profits.
Further, if the decedent passed away without a will or trust, their estate is subject to intestate succession laws, and if your siblings are trying to disinherit you, it is important to know that you have rights and you deserve an equal share of the estate.
“Step-children need to understand that they may have a right to an equal share, too. In recent years, step-siblings have been afforded more avenues to claim their rightful inheritance.”
– Alison S. Gokal, Partner, Gokal Law Group
When one sibling has borrowed substantial money or assets from their deceased parents or taken them from the trust itself, this is also when we often see litigation regarding what constitutes a “fair” share of the sale of a property.
For example, has a sibling lived in the property rent-free and failed to repay the back payments they owe in rent? These situations are incredibly complex, and getting expert guidance from a probate or trust attorney is crucial.
Related Article: Taking Siblings to Court: Can Siblings Force the Sale of Inherited Property?
Is Someone Trying to Deprive You of Your Inheritance? We Can Enforce Your Beneficiary Rights.
So, how is the sale of inherited property split between siblings? This, ultimately, depends on the trust and will document. Still, if you suspect you are not receiving the share you are legally entitled to, working with an attorney as soon as possible is essential to assessing your case, enforcing your rights, and defending your inheritance.
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