'When my wife's mom passed away, the eldest brother took on the role as executor'
"What options does my wife have in trying to figure out her rights?" (Photo subjects are models.)
Dear Quentin,
This sorry saga is like a bad movie. My wife inherited a share of her family's two-unit Florida beach home, when her mother passed away three years ago. It is officially a three-unit home, according to city records, but the space is now equally split into two units, one for each of her brothers to live in free and clear. When my wife's mom passed away, the eldest brother took on the role as executor. There are also other properties my wife's mom owned. My wife was grieving her mom's death, so she let her eldest brother handle all the legal stuff.
During the probate process, the lawyer advised that the younger brother add his wife to the title of the home because they are Florida residents. It had something to do with property taxes, because the brothers used the home as their main residence. My wife, on the other hand, did not get to add me (her spouse) to the title. It is all very vague, and the brothers kept my wife out of the loop when the estate was going through probate. Emotions were high and some drama happened. Everyone was grieving, but for the most part everyone kept the peace and life went on.
The payoff
My wife's brothers received $550,000 in insurance money after the home was destroyed by two hurricanes. After one year, the house is still sitting there, waiting to be fixed. Do they rebuild or repair? All we know is that the insurance money is in the eldest brother's bank account, not to be touched. My wife believes they should take the $550,000 and rebuild the home as a three-unit so she can have access to her inheritance. Both my wife and her elder brother have resources to invest into the home and convert it back into three condos.
The younger brother, whose wife's name is now on the title, does not have funds to invest, but he seems to have the loudest voice in the decision-making process. My wife's two brothers decided most recently to rebuild the home as a two-unit only. They are telling my wife that she is out of luck with enjoying the family home or benefiting from her inheritance. They tell her that she has to wait until one of them dies before she can live in or enjoy the home.
The plot twist
What options does my wife have in trying to figure out her rights? How does she stake a claim to enjoy or assert ownership or even have fair use of the home once it's made livable again? The brothers are going to continue to live there rent-free. They will never pay my wife rent. They will take care of the upkeep and will continue to pay all the bills, which is somewhat the way it was when her mom was still alive. I feel we need legal advice to find out what my wife's rights are, but my wife does not want to rock the boat with her siblings.
The hurricanes last year affected more than just the home, and we know that her brothers are spending money on repairing their other homes. Are they using some of the $550,000 insurance money to fund the repairs to those other homes? Is there some other plot twist we don't know about? Do they have the right to touch that money without my wife's consent? I know the other homes did not get insurance money. What are my wife's options here? We have our own wealth, but I care that my wife should be treated fairly and that my kid's inheritance is secured.
Rocking the Boat in Illinois
Related: 'She lives alone': My mother-in-law, 86, gets $1,300 in Social Security. Is that enough to live on?
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Your wife signed documents to add her sister-in-law's name to the title during a time of grief when her ability to think clearly may have been impaired.
The MacGuffin - an irrelevant detail that moves the plot along in a movie - in this case is the lie that your one brother-in-law, being a resident of Florida, suddenly, after all these years, was compelled to add his wife's name to the title of a property where he was living. This was a property that your wife shared with her two brothers, but now it is split four ways, not three. She did not have to agree to this arrangement. It's OK to say no. But in order to push or cajole her into agreeing to put his wife's name on the deed, thereby giving this couple a 50% share in that home, this brother dreamed up this MacGuffin.
Given that the home is officially a three-unit home, it is not only a residence for your brothers-in-law, it's also a generous source of rental income that will serve them in their retirement. Your wife signed documents to add her sister-in-law's name to the title during a time of grief when her ability to think clearly may have been impaired. What's done is done. It cannot be reversed. She did so without coercion and she was of sound mind, even if the decision was foolhardy. It's perhaps unsurprising that the youngest brother, whose wife is now on the deed, is the one without funds to pay for repairs and yet is the squeakiest wheel.
The subtext
Let me stick with the movie theme and give you the subtext: The relationship between your wife and her brothers is already effectively damaged beyond repair. They have only acted in their own best interests and have shut your wife out of the probate process and the insurance money. They will continue to do what they do. No amount of appeasement will change who they are or their goal in securing this property for their own use, and in using the $550,000 for whatever they think it should be spent on. Their motivations are threefold: money, money and money.
Fortunately, you have your own money and you can decide to fight them - in a court of law, if necessary, or create pressure to ensure they behave in a transparent manner. Let there be no mistake: Taking $550,000 and spending it willy-nilly could be problematic. The insurance money must be spent in accordance with the terms of the policy: Typically, a policy provides for "actual cash value" or "replacement cost." If they wanted to convert the property to a three-unit building, that would probably be OK, given that they would be restoring it to its previous condition. But no matter what, it's time to demand a full accounting - with receipts.
The dramatic arc
All of this brings us to the dramatic arc - the inflection point in the story when your wife has endured enough drama, intrigue and underhanded tactics that she must now act. She could ask her brothers to buy her out of the home entirely and wash her hands of these financial shenanigans. If they refuse, she could file a partition action, the legal process by which a co-owner can force a sale or physical division of a property. This would entail a lawsuit filed under Chapter 64 of the Florida Statutes and could result in a court-ordered sale. It's a big step to take, but your brothers-in-law have already taken many questionable steps.
Finally, here's the theme of this movie: You don't get to enjoy an easy, peaceful and happy life by allowing people, even and especially family members, to walk all over you. Because if they do it once (with a scurrilous lie to persuade your wife to add her sister-in-law to the deed of this property) they will do it again (by using some of the money in the $550,000 insurance payout and keeping the rest). You have two objectives: fair use of this insurance money and fair compensation (or rent) from this property.
Now you get to write your own ending.
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Previous columns by Quentin Fottrell:
'I have a great mortgage rate': I need $80K to buy my husband out of our home. Do I raid my $180K Roth IRA?
'I'm tired of corporate America': My wife and I have $1.65 million. I'm 61. Can I retire already?
'I don't know anything about investing': I'm inheriting a $150K IRA. What should I do with it?
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-Quentin Fottrell
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