- Joined
- Aug 25, 2020
- Messages
- 1
Hi Everyone.
This question is for me and is emotional to ask. Hopefully I can give you the readers digest version.
There are 3 adjacent, waterfront, drive to properties on Georgian Bay in the town of Parry Sound that have been in my family for 5 generations all with year round homes and in my parents trust. Both my parents are now deceased.
Two of the properties have been appraised. One (83 Oakridge Rd.) is for $600K and the other (85 Oakridge Rd) is $570K. The third was my parent's principle residence and was appraised for tax purposes only at $1.5M. None of these have been listed yet.
The executors, a retired lawyer and retired accountant are to sell these properties and the funds to be distributed equally among myself and my 3 siblings, so 25% each.
My family, meaning my children and grandchildren don't want the money but want the properties instead. This means I have to payout my siblings 75%. This is the challenge.
As mentioned these properties are all in a trust. I can't take the properties "in lieu of" and then get a mortgage for the balance because of the trust. So I have to get funding to buy one, two, or 3 of them.
My son and his family is presently living and renting 85 Oakridge Rd and want to buy it. However, he can only afford around a $400K-$450K mortgage. The executors can only accept $570K. Any suggestions for them?
I have been finding ways to try to buy 83 Oakridge for the $600K. I automatically have 25% equity. There are other assets in the estate which would allow me to payback a mortgage or reduce it considerably if I could get one. The kicker here is I don't know when, can't guarantee anything and the worst of my parent's will is everything must be transferred from either of my parent's trust to my trust. BUT I have a co-trustee which is my sister who has to agree to anything that I want to do with anything in my trust. So if she says no I don't want to payback that mortgage I am in a stalemate.
My husband and I don't have the income to support a mortgage of this size. There are the other assets though. If somehow we were able to get a mortgage it would have to be as either a rental property or I was thinking my husband & I could live there as our principle residence but then rent it out so many weeks of the year as weekly rentals to pay back the mortgage until such time as my trust and the assets in it become available to me. Again, don't know when or how much.
I have spent thousands of dollars on lawyers. Most advise to break the trust but my one brother who is representing himself won't or can't make that decision. It has been 3-4 months now.
My sister, lives in B.C. who has agreed to resign as my co-trustee but in order to do so I have to go to court and they are backlogged due to Covid. In the meantime the executors can proceed with listing and selling the properties and there is nothing I can do to stop them. It seems so unfair.
The third property I was thinking of making it into a triplex which can easily be done because there is an apartment in the basement already. The up two floors can easily be divided. Might as well dream big. The huge advantage of this property is it has most of the beach between the 3 of them.
The other thing I would like to add is that my husband and I presently own 2 rental properties. The one is worth $250K with a mortgage of $175K which we just remortgaged last October to take out the equity to buy our other rental property. The second rental property is about $300K with a mortgage of $221K. Both have 5 year fixed terms. Looking into penalties and interest charges if we were to sell these 2 properties.
My family have done everything we can think of to try to keep these properties. My children have even sent personal letters to each of my siblings to please keep these properties in the family, rent them and take out a monthly income. Once these properties are gone we will never get them back. The response from my siblings is, through their lawyers, "sell them and at the highest price".
This is a very long post and hopefully enough information for comments. Please don't be afraid to say, given the trusts and all the legal ramifications let the properties go, wait for the dust to settle and then go from there. I have to ask though in case I am missing something.
Thanks in advance.
This question is for me and is emotional to ask. Hopefully I can give you the readers digest version.
There are 3 adjacent, waterfront, drive to properties on Georgian Bay in the town of Parry Sound that have been in my family for 5 generations all with year round homes and in my parents trust. Both my parents are now deceased.
Two of the properties have been appraised. One (83 Oakridge Rd.) is for $600K and the other (85 Oakridge Rd) is $570K. The third was my parent's principle residence and was appraised for tax purposes only at $1.5M. None of these have been listed yet.
The executors, a retired lawyer and retired accountant are to sell these properties and the funds to be distributed equally among myself and my 3 siblings, so 25% each.
My family, meaning my children and grandchildren don't want the money but want the properties instead. This means I have to payout my siblings 75%. This is the challenge.
As mentioned these properties are all in a trust. I can't take the properties "in lieu of" and then get a mortgage for the balance because of the trust. So I have to get funding to buy one, two, or 3 of them.
My son and his family is presently living and renting 85 Oakridge Rd and want to buy it. However, he can only afford around a $400K-$450K mortgage. The executors can only accept $570K. Any suggestions for them?
I have been finding ways to try to buy 83 Oakridge for the $600K. I automatically have 25% equity. There are other assets in the estate which would allow me to payback a mortgage or reduce it considerably if I could get one. The kicker here is I don't know when, can't guarantee anything and the worst of my parent's will is everything must be transferred from either of my parent's trust to my trust. BUT I have a co-trustee which is my sister who has to agree to anything that I want to do with anything in my trust. So if she says no I don't want to payback that mortgage I am in a stalemate.
My husband and I don't have the income to support a mortgage of this size. There are the other assets though. If somehow we were able to get a mortgage it would have to be as either a rental property or I was thinking my husband & I could live there as our principle residence but then rent it out so many weeks of the year as weekly rentals to pay back the mortgage until such time as my trust and the assets in it become available to me. Again, don't know when or how much.
I have spent thousands of dollars on lawyers. Most advise to break the trust but my one brother who is representing himself won't or can't make that decision. It has been 3-4 months now.
My sister, lives in B.C. who has agreed to resign as my co-trustee but in order to do so I have to go to court and they are backlogged due to Covid. In the meantime the executors can proceed with listing and selling the properties and there is nothing I can do to stop them. It seems so unfair.
The third property I was thinking of making it into a triplex which can easily be done because there is an apartment in the basement already. The up two floors can easily be divided. Might as well dream big. The huge advantage of this property is it has most of the beach between the 3 of them.
The other thing I would like to add is that my husband and I presently own 2 rental properties. The one is worth $250K with a mortgage of $175K which we just remortgaged last October to take out the equity to buy our other rental property. The second rental property is about $300K with a mortgage of $221K. Both have 5 year fixed terms. Looking into penalties and interest charges if we were to sell these 2 properties.
My family have done everything we can think of to try to keep these properties. My children have even sent personal letters to each of my siblings to please keep these properties in the family, rent them and take out a monthly income. Once these properties are gone we will never get them back. The response from my siblings is, through their lawyers, "sell them and at the highest price".
This is a very long post and hopefully enough information for comments. Please don't be afraid to say, given the trusts and all the legal ramifications let the properties go, wait for the dust to settle and then go from there. I have to ask though in case I am missing something.
Thanks in advance.