Real Estate Law | Sibling’s purchase of home held in trust can be tricky but doable
Dear Mr. Feichthaler:
My two sisters and I recently inherited a property from our father, which he held in a trust. The property is still there, and one of my sisters is the successor trustee. The house is worth about $450,000. Is it possible for me to acquire or purchase the house without a Realtor? How would it work?
Maureen C.
Dear Maureen:
First, our condolences on the loss of your father. I assume from the above the trust provided for the three of you to have an equal distribution of assets from the trust, including the property. There are several ways your plan can be accomplished.
The successor trustee could deed the property to you directly from the trust. If there are significant financial assets in the trust, your portion could be applied toward your acquisition of the house, which would be $300,000 of the $450,000 value.
If the home is the only asset of the trust and you need to purchase, either with cash or through financing, the transaction may be set as a standard sale, with the three owners (including you), selling to you for the value of the property of $450,000. You would gift your interest to yourself, so only $300,000 would be brought to closing, through cash or financing.
Intra-family transfers can be complicated, and further so when a lender that is not experienced in handling these matters is determining how to structure the loan. The good news is, your goals can certainly be achieved through a variety of means.
Eric P. Feichthaler has lived in Cape Coral for over 35 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Cape Coral to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through the Cape Coral Caring Center, and Cape Coral Kiwanis. He has been married to his wife, Mary, for 22 years, and they have four children. He earned his board certification in Real Estate Law from the Florida Bar, and primarily practices in real estate law and wills and trusts. He is AV Preeminent rated by Martindale-Hubbell for professional ethics and legal ability, and is a Supreme Court Certified Circuit Civil Mediator. He can be reached at eric@capecoralattorney.com or 239-542-4733.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.
To reach ERIC P. FEICHTHALER, please email news@breezenewspapers.com