What Should You Do When You Inherit a Home With Siblings?

By Richard Warner

I have been an investor and landlord for 5 years. When I got my official real estate license, I started as a First Time Homebuyer Specialist and have since received specialization certifications in Luxury Homes, Probate, and Divorce.

How can you honor a loved one’s memory while dealing with inheriting a home with your siblings? Losing someone you love is always extremely hard, but having siblings you can lean on makes it somewhat lighter. That being said, inheriting a house is more trouble than you might think. If there’s inheritance involved, please be advised that it might be critical for you to stay strong, at least until the will has been executed, and evaluate the situation with a calm mind.

In Kentucky, if you die without a will, your spouse normally gets half of your assets, and your child gets the other half. If you have more than one child, the assets will be divided equally among them. If you have no living children, that half goes to your parents; if no parents, it goes to your siblings.

If you don’t make a will, your spouse and siblings could easily sit at a round table arguing over who gets what. Let me help you navigate the situation. I’m here to give you practical advice on how to avoid family drama and honor your loved one’s legacy:

1. Understanding your options. After the funeral and a chat with the estate lawyer, gather everyone for a discussion, preferably with snacks to keep things calm. You have a few options:

• sell the house and split the profits

• rent it out and share the rental income

• have one sibling buy out the others.

Just make sure to get the house appraised first to avoid any accusations of favoritism. If there is more than one property, siblings may agree on a private arrangement, where one takes the primary residence while another takes a vacation home of similar value.

Experts suggest the easiest route is selling and splitting the money right away.

2. Legal considerations. If a will or trust exists, you should carefully review its instructions with a lawyer or real estate professional. Be familiar with legal concepts such as tenancy in common, where each owner has an undivided interest, and joint tenancy, in which ownership is shared equally and transfers automatically to surviving co-owners.

If you decide to sell the property, consider potential capital gains taxes. If this is the case, consult a trusted attorney specializing in probate law who can clarify and protect your interests.

3. Maintaining family harmony. Strive to communicate pleasantly with your family.

If you say anything at all, tell the truth. Grieving people are often looking for someone to blame, so you don’t want to tell Cousin Jerry that he was Granny’s favorite if she left nothing to him in the will.

Discuss your wants and expectations about the home and try to reach a compromise that respects everyone’s wishes. If there is a disagreement, let them know that you are feeling a lot of emotions right now and just want to be fair. If things get heated, bring in a mediator, like the estate lawyer who wrote the will for the deceased. Hopefully, this will help resolve the conflict and preserve family relationships.

Be aware of a few types of siblings:

• The squatter who decides they’re moving in with no rent,

• The disappearing act when heirlooms mysteriously vanish,

• The financial wizard who wants to invest in crypto and

• The micromanager who appoints themselves CEO of the house and emails you a PowerPoint about how to manage it.

Inheriting a house with siblings is part legal maze, part emotional roller coaster, and part soap opera. The key is finding a solution that works for everyone while honoring your loved one’s memory. If you’re in the middle of this, do not wing it. Consult a probate lawyer and get clear advice.

If you need help managing or selling that property, please reach out to me. I am probate certified to make this process as smooth as possible. Call me at (502) 338-2861 or email rich@howtoaffordhomes.com. I’d be happy to assist you.