i inherited a third of my grandmas estate.how does this work?

Question

my two uncles and i inherited a third each of my grandmothers estate. my one uncle and i are selling the house to my other uncle for below market price for $455,000 AS IS. does my uncle that is buying the house from us, get a third of the $455,000 and the house or do me and my other uncle split$455,000 and the other uncle gets the house? how does this all work? i am confused!

Answer 1

You and your uncle who are selling your interest each get 1/2 of $455,000 or $227,500 each. The 2nd uncle gets full title to the house.

Addendum: As a matter of clarification, in response to your e-mail to me:

I should probably expand upon my answer a bit. If you 3 have agreed that the value of the home is $455,000 then each now owns a share worth $151,666.67. You and the uncle selling to the 2nd uncle would each get that much. If you have agreed to sell your combined 2/3 share for $455,000 to the 2nd uncle you'll get what I stated in my answer above.

Answer 2

Believe me when I say this is not cut and dry like you think. Check the will again and make sure there are no clauses as to what may be done with the house. Just because you all think it is divided into thirds it isn't that simple.

Also check to see how you all have Title. This is very imortant to know if you all are Tenants in Common or Joint Tenants. There is quite a difference between the two and you need to know this.

Also make sure that your Purchase Contract is done correctly and taken to an Escrow Company so they can act as a third party to your escrow. That way money is kept in a trust account and not personal account which will become an issue down the road.

Escrow will get from Title a Preliminary Title Report to see who actually owns the property and if there is any liens against it. This will also tell you how title was taken and it could be free and clear as well.

Think the steps through, you don't need an agent for this transaction but use the Escrow Officers knowledge so that you won't have family lawsuits either.

Answer 3

Invent an "imaginary" fourth party who gets nothing but acts as an intermediary; pretend the house got sold to them. Each of you gets a third of the $455,000. Then the imaginary party sells the house to the buying uncle for $455,000...

So that uncle actually buys the house by paying you two $151,666.66 each

Answer 4

You each get 1/3 of the $455,000, or $151,666. The Uncle that is buying the house, gives you and your other uncle $151,666 each and his share is now the equity in the house he owns by himself.

Answer 5

That's basically a $75,000 question, isn't it?

What do the documents say? It depends on whether he is buying the individual interests from two individuals for that price, meaning you would get half of it (after costs), or if he is buying the entirety from the estate itself for $455,000, meaning you get a third of it (after costs).

It sounds like (i inherited) that you have a deed from the estate with three names on it. If that's the case, the price SHOULD mean for the two interests he doesn't already have.