inheritance problems

[rancher]

Jurisdiction

Oregon

I am an inheritor, (one of four) of ranch property. I am trying to buy the property that consists of 4200 acres. I've lived on it for forty two years. One of the inheritors, my sister, is also a trustee along with a cousin. My mother, owner, recently died. She and I had a partnership agreement---involving only me. I have hand written letters from her declaring that all partnership items are mine and not to be shared by the other inheritors. The ranch property itself will be divided by the other inheritors. One of the inheritors is already very vocal about her rights. None of the other inheritors have objected to the partnership. This sister (not the trustee sister) might take us to court with a lawyer who will work on a contingency plan. Also she will be inheriting around $500,000.00 along with me, my sister and the other inheritors, issues of my deceased brother (who receive only 1/16th of the inheritance). Not one of these people are objecting. I have worked on this ranch for 42 years, every year improving it and no one else in the family has. I want to buy out the others' shares. Another aspect of this is I have been paying the trustee sister $1,000. a month for living expenses. Now I'm concerned that this would appear as collusion. I don't want my good (trustee) sister to get in trouble about this. We've all been extra careful to do things correctly, knowing the not-so-nice sister will pounce on it. Any ideas? I don't mind paying for the question if I need to ask more. Thank you.

 

[adjusterjack]

I don't mind paying for the question if I need to ask more.

Then you should hire an attorney.

It's impossible to advise you without reading the specific written partnership agreement. If there is no written partnership agreement then the letters from your mother might not do you much good when put up against the terms of the will.

Another aspect of this is I have been paying the trustee sister $1,000. a month for living expenses. Now I'm concerned that this would appear as collusion.

Depends on what you mean by paying the sister for living expenses.

The property is owned by the estate. Your status for the moment is that of tenant. If you are paying rent to "the estate of ____" then there's no problem. Or is it something else?

I want to buy out the others' shares.

No problem with that. Just pay an amount of money to each heir that would make them happy to sell their share to you. How far have you gotten with that?

I'm reading between the lines here but I'm guessing that you want some sort of compensation for the 42 years you've been working the property. Maybe in the form of paying the other heirs less than the market value of the shares?

 

[rancher]

Thank you for getting back to me.
Then you should hire an attorney.
I have an attorney---I'm just looking for more info. I am also paying the estate lawyer's fees. The other inheritors are not.

It's impossible to advise you without reading the specific written partnership agreement. If there is no written partnership agreement then the letters from your mother might not do you much good when put up against the terms of the will.
I have the partnership papers. It's also stated in the will. All the inheritors have a copy. It states specifically what goes to me in the partnership.

Depends on what you mean by paying the sister for living expenses.
She and my mother bought a house together---it's not part of the estate just like the partnership But she can't pay the mortgage on her own. She doesn't have a job.

The property is owned by the estate. Your status for the moment is that of tenant.
If you are paying rent to "the estate of ____" then there's no problem. Or is it something else?
All the money made on the ranch goes into the ranch. I have not taken a wage. The cattle and equipment is the partnerships' but I pay property taxes, vet bills, vehicle repairs, house maintenance, gas and oil, and everything else with income from the cattle sales. My mother was fine with that. Also, so are the other inheritor's except the sister with more issues. Also, the others have a house they own and jobs. Should this property sell (I am trying to buy it) I am out of a job and a home. It's probably not important but I am 67 and my wife is 65. Together we do fine at our own pace when working on this ranch even though I have Ankylosing and she has Parkinson's we are healthy because of this lifestyle.

I want to buy out the others' inheritance.

No problem with that. Just pay an amount of money to each heir that would make them happy to sell their share to you. How far have you gotten with that?

I will pay out to each the exact amount each will get as a portion of their inheritance.
I have people lined up who will buy a piece of the property at a specific price per share. In this case, $10,000.00 per share but this is after I buy out the other inheritors. Also I recently paid for an appraisal of this property with approval from the trustees.

I'm reading between the lines here but I'm guessing that you want some sort of compensation for the 42 years you've been working the property. Maybe in the form of paying the other heirs less than the market value of the shares?

No, just the portion same as the others, as an inheritor. And it wouldn't be a good idea to pay the others less than fair market value. Plus the mad sister will take me to court immediately if I did that. And rightly so. I intend to pay the mad sister's portion as soon as possible but first the money has to be distributed.

If I ask more things how much should I pay you?

Thanks again.

 

[rancher]

Hi, I'm not sure my post went through.

 

[adjusterjack]

Hi, I'm not sure my post went through.

It went through.

I am a volunteer here, I don't do it for money, and I am not a lawyer. I make helpful comments based on my experiences in many areas and my ability to do online research.

I'm still not sure I understand where the problem is.

Let me give you an example and see if it's close.

The property (land and buildings) is worth $2,000,000 on today's market. There are 5 heirs including you. Each heir inherits a share worth $400,000. You want to buy them out. You come up with $1,600,000, divide that among the other 4 heirs and the property's yours. Your figures may differ but that's how the math works.

You wrote that you paid for an appraisal. How much did the property appraise for?

The property is apparently a farm or ranch so there's going to be assets that are not real property (farm equipment, livestock, bank accounts, receivables, etc). According to the partnership agreement and the will, all of that goes to you.

So far you've indicated that none of the heirs object to either of those two paragraphs, except for maybe one sister who is huffing and puffing about something but you haven't said what it is that she wants.

Is my analysis anywhere close to the reality?

 

[dee_dub]

Thank you for getting back to me.
Then you should hire an attorney.
I have an attorney---I'm just looking for more info. I am also paying the estate lawyer's fees. The other inheritors are not.

It's impossible to advise you without reading the specific written partnership agreement. If there is no written partnership agreement then the letters from your mother might not do you much good when put up against the terms of the will.
I have the partnership papers. It's also stated in the will. All the inheritors have a copy. It states specifically what goes to me in the partnership.

Two things (and it's been a while, so forgive the formatting...)

First, Why are you paying the estate lawyer's fees? Those should be coming out of the estate.

Second, Things that were owned by you and the deceased in a "partnership" prior to her death were, basically, 50% owned by her. She can't dispose of them after her death (i.e. give them to you) through the partnership. She *could* have given them to you when she was still alive, and perhaps that's what these "partnership papers" do. But if she didn't, when she died, these items became part of her estate and should be divided up according to the terms of her will. If the other inheritors haven't squawked about this, they are letting you get something extra out of the goodness of their hearts.

 

[rancher]

Two things (and it's been a while, so forgive the formatting...)

First, Why are you paying the estate lawyer's fees? Those should be coming out of the estate.

Second, Things that were owned by you and the deceased in a "partnership" prior to her death were, basically, 50% owned by her. She can't dispose of them after her death (i.e. give them to you) through the partnership. She *could* have given them to you when she was still alive, and perhaps that's what these "partnership papers" do. But if she didn't, when she died, these items became part of her estate and should be divided up according to the terms of her will. If the other inheritors haven't squawked about this, they are letting you get something extra out of the goodness of their hearts.

 

[rancher]

Thanks for replying. before she died she designated the partnership, involving one son and his wife (that's us) to get all the partnership items. She also hand wrote the same statements in two personal letters to this son, also read by the two trustees and the other inheritors. This son had worked the ranch for forty years improving the property. It took many years to get it done and the last five years the ranch finally was in the black enabling the heirs to receive more money in the event of a sale of the ranch after the death. The son did not take a wage and, yes, we lived on it while we worked it. Ranches always supply a free place to live for the owners, managers and hired people because the ranches are often in a remote area and usually there are more than one homes available on a ranch property. Also. nowadays, ranches are usually owned by millionaires who buy ranches for recreation not agriculture. We are a family ranch; a rarity, and grow hay and raise cattle.

We only paid for a one time visit to an attorney because the estate doesn't have money yet and we'll get reimbursed.

 

[dee_dub]

Thanks for replying. before she died she designated the partnership, involving one son and his wife (that's us) to get all the partnership items. She also hand wrote the same statements in two personal letters to this son, also read by the two trustees and the other inheritors.

Doesn't sound to me like a valid way of transferring property. The property she owned can only be yours if she either gave it to you while she was alive (and I don't see that) or she willed it to you after she died (and I don't see that). I think your sister feels the same way, and she might be right.

So now you want to buy out all the other shares of the ranch. Great. That's not really a wills and estates issue. If you can work out terms where all the other beneficiaries agree to sell you their shares, you're in business.

So... what's the question?