When parents pass away leaving real estate to their children jointly, the siblings must decide together what to do with the inherited property. These decisions combine grief, family dynamics, and significant financial interests – often a challenging combination.
The Inheritance Triggers the Partnership
When siblings inherit property jointly, they become co-owners automatically upon the parents’ death. This co-ownership may be unwanted by some or all of the siblings. The law gives each sibling the right to demand dissolution, but exercising this right affects family relationships.
Common Post-Inheritance Scenarios
Several common scenarios develop after siblings inherit jointly: all siblings agree to sell and divide the proceeds, one sibling wants to buy the others out, siblings disagree about whether to sell and the dispute escalates, or one sibling is living in the property and refuses to leave or pay market rent.
Each scenario requires different legal strategies.
The Sibling Who Lives in the Property
If one sibling has been living in the inherited property – perhaps caring for the parents before their death – they often resist dissolution and sale. While they cannot permanently prevent dissolution, they may have claims for compensation for their caretaking work, or rights to purchase the property at a special price.
Equalization for Caretaking Contributions
A sibling who contributed significantly to caring for the parents, to the detriment of their own career or finances, may have grounds to claim a larger share of the estate – including the property. This claim intersects with the inheritance proceedings and must be addressed properly.
Reaching Family Agreement
Family mediation, conducted sensitively and with respect for the family relationships involved, often produces better outcomes than adversarial dissolution proceedings. An attorney can guide the process while being aware of and responsive to the family dimensions.
