More often than not, a home is the most valuable asset in an estate. It follows that many people want to pass their home down to their children. However, a home is a difficult thing for siblings to share unless they plan to live in the home together. Further, adult children may have their own homes and their own agenda for the inherited house.
It is not uncommon for sibling sets to disagree about what to do with an inherited house. One may want to sell; another may want to keep it for the family. A heir might worry that they will be forced to own property they do not want, or forced to sell property they would like to keep. Fortunately, there are options to mediate disagreements between siblings before a partition action is filed.
What is a Partition Action?
A partition action is a legal action to force the sale of a property owned by more than one person or entity. In a partition action, either the other property owners buy out the owner who wants to sell or the entire property is sold and the proceeds split between the owners according to their interest.
In Georgia, research determined that partition actions provide few protections for low- and middle-income families. In 2012, Georgia became the first southern state and the second state overall to pass the Uniform Partition of Heirs Property Act. This act establishes appropriate notifications and a hierarchy of actions a co-owner should take before and while filing a partition action.
Overall, a partition action could be harmful for all parties involved and should be the last action a sibling takes if they’d like to sell an inherited property. There are other agreements that siblings can come to.
Options if My Siblings and I Disagree on What to Do with an Inherited House
Buyout: One sibling might consider buying the other out of the home. If a sibling wants to keep the home, but cannot afford a buyout, the two siblings might be able to mediate an agreement for installment payments with interest.
Renting: The sibling that wants to sell might charge the other sibling to live in the house, or the siblings might decide to rent the home to a third party and split the profits.
Selling: In the end, siblings may find that their only option is to sell the home and share the profits. Regardless of what siblings decide to do, it is important to have an agreement in writing to avoid all future conflicts.
We Handle Estate Disputes
If you and your sibling are struggling to come to an agreement on an inherited house, Gaslowitz Frankel LLC are experts in alternative dispute resolution. When you contact our law office at 404.892.9797, you’ll be in touch with the premier fiduciary litigators for the state of Georgia.
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Gaslowitz Frankel LLC is the Southeast’s premier fiduciary litigation law firm. Our legal team specializes in all aspects of fiduciary disputes with over 30 years of experience representing individuals, executors, trustees, and more in complex fiduciary disputes involving wills, estates, and trusts.
