What are your thoughts or have you been through this??

[Blizzyblizz]

No legal anything here, but I have a question. Mom has contract, at her death, it's worth 10 grand. Right now there are five names on the deed. So you'll need to pay inheritance tax on 2 grand. Wouldn't be better to have the deed transferred now?

Estate tax only kicks in when the estate is worth ~$13+ million, so it's not a factor in the vast majority of situations.

 

[AaronEuth]

I will give a different answer - talk to your mom and she may choose to leave it to the two who want it and compensate the others in some other way. She might even be glad to transfer the contracts now and the yearly expenses.

Depending on how the deed is written, this may not be possible. OP said they are all already on the deed.

If it has right of survivorship to all four sisters, then her mother cannot list it as a specific gift to any of them. They would each own an equal share upon their mother's death automatically through the deed, and the deed never hits probate (they actually each own a 20 share right now).

To the OP, regardless of the above, you would need to purchase out your sisters portions. Dues have nothing to do with ownership, and represent the current cost for use. And your sisters are already on the deed, there is no avoiding that unless they willingly sign a quit claim.

 

[New Mouse]

To save the headache your mom should assign that asset to the two of you and then just change something else of equivalent value to go to them. If all 4 of you inherit it, establishing a fair value is going to cause some grief on both sides.

You should also switch the deed in advance if all of you are on it.

 

[jo-jo]

Estate tax only kicks in when the estate is worth ~$13+ million, so it's not a factor in the vast majority of situations.

Ten years ago, I took care of my sister’s will. I forget exact numbers, but in PA , siblings had to pay say 5%, nieces/ nephews had to pay 8% etc. Her total estate was under 300 grand.

Maybe rules have changed???

 

[Sandisw]

Depending on how the deed is written, this may not be possible. OP said they are all already on the deed.

If it has right of survivorship to all four sisters, then her mother cannot list it as a specific gift to any of them. They would each own an equal share upon their mother's death automatically through the deed, and the deed never hits probate (they actually each own a 20 share right now).

To the OP, regardless of the above, you would need to purchase out your sisters portions. Dues have nothing to do with ownership, and represent the current cost for use. And your sisters are already on the deed, there is no avoiding that unless they willingly sign a quit claim.

That is a good point about them all being owners already...similar to the way our contracts are with our adult kids...and that it is not part of the estate and the mom to decide what to do as she is not sole owner.

It can't be sold until all owners agree to sell and in this case, if two want out and two do not, then its definitely a situation that needs resolving with a conversation.

But, I will add the other side of the coin....the two who want out can't force the others to pay them for their share...and would technically be responsible for their share of the dues as long as it is owned.

That is why it is probably a good idea to have these things decided on and changed now in terms of ownership if each sister already knows what they want/don't want.

 

[thanxfornoticin]

Ten years ago, I took care of my sister’s will. I forget exact numbers, but in PA , siblings had to pay say 5%, nieces/ nephews had to pay 8% etc. Her total estate was under 300 grand.

Maybe rules have changed???

PA is one of only 6 states in the country to charge inheritance taxes. This issue depends on where Mom lives.

 

[thanxfornoticin]

To save the headache your mom should assign that asset to the two of you and then just change something else of equivalent value to go to them. If all 4 of you inherit it, establishing a fair value is going to cause some grief on both sides.

You should also switch the deed in advance if all of you are on it.

I so agree with the folks who recommend talking it out now, among the 5 of you, to best understand Mom's wishes. One wish I would be almost certain she has (without even knowing her) is that she would not want something like this to come between sisters. Talk about it, discuss her wishes, and see how to best work it out now so it's not a thorn in the family relationship later. And from experience, there's likely more to talk through than just a DVC ownership.

 

[jo-jo]

PA is one of only 6 states in the country to charge inheritance taxes. This issue depends on where Mom lives.

How did I get so lucky?