This feels “too personal for internet,” but it seems SO ESSENTIAL for advice-giving purposes on the SIL/house situation. I’ve seen the appraisal on Paul’s mother’s house, and it’s $25,000. That’s in as-is condition and includes the land.
This feels “too personal for internet,” but it seems SO ESSENTIAL for advice-giving purposes on the SIL/house situation. I’ve seen the appraisal on Paul’s mother’s house, and it’s $25,000. That’s in as-is condition and includes the land.
Is that the tax appraisal or Fair Market Value? Also, DAMN, we would be lucky to find a dump around here for 10 times that!!
Hey – if you are only giving up 1/2 the house, doesn’t that put you on the favorable side of the gift tax situation????
Give it up!
I agree with the comments to consult a tax lawyer or someone, to make sure you have the papers you need etcetera, but oh my, just give it to her! It seems like so much more worry than it’s worth!
That settles it. GIVE. Even if technically you and Paul don’t own it jointly, $12,500 is less than the gift tax-free minimum.
I cannot even imagine! Seriously. You cannot even get a TOWNHOUSE in this area for less than 300,000 dollars. Average house is 500,000.
Twenty five thousand is, like, the price of a car.
No advice, just shocked at the price. Holy cow!
Well, my answer doesn’t change, though I don’t think I commented on your most recent post about this because I was confused and thought it was the tax question post, but I would say GIVE IT UP. No question. And now knowing the actual value of the home (because “very low could be 100K to some people, in some markets), I say KICK IT TO THE CURB. You’re going to spend more on a new roof and the other upcoming repairs that are bound to follow than you’d receive after you paid taxes and sold the place.
Goodbye house!
If that is it’s appraised value then yeah, give it to her,make sure she knows you won’t be helping with repairs, taxes & things and walk away
In our town they publish all house sales in paper. Many of these are
things like: A Smith and B Smith to A Smith, $1. So it’s possible you
could sell for cheap to avoid tax issues. But I’m no accountant. As a million people said you should ask one.
But I also agree with others — just get rid of it before you sink more money into it — new roofs are EXPENSIVE.
Type (little) a– Oh! It’s the Fair Market Value, I think.
Seriously, as others have mentioned, getting a new roof and doing some relatively minor repairs will likely set you back more than 1/2 of $25K. I’d give it to her and be done with it. As I said before, of course consult a professional, but from a strictly emotional standpoint, it would be nice to be free and clear.
on the bright side you’re not losing that much! (on the other side…geesh…she can’t pay 12,000!!!!)
Give SIL the house. You’d probably end up paying more than it’s worth on repairs and TMJ treatment for all the jaw-clenching you’d be doing.
Oh holy hell. Get out of that mess. Get out now!!As much as it pains me to say it in principle (on so many levels), Just give it to her and be done with it!
Wow. Just…WOW. Get out and never think of it again. $12,500 is not worth getting upset over. And! It will cost that amount for the demolition people to knock that sucker down.
The part that upsets me is that she sounds like someone who doesn’t need to be gifted $12500. I have at agree with posters on the previous thread that suggest your SIL is taking advantage of your husbands kindness. The situation leaves a bad taste in my mouth, it would be tough for me to live with.
Ha ha, you should gift your half to a church or charity that could actually use the money or the shelter.
Wait–where is this? I would like to buy a house for $25K. Unless the neighborhood is actually dangerous.
I’m kidding, kind of. Only that appraisal makes clear: GIVE. You are not giving $12,500, because there is no way on earth you are ever going to get that $12,500. Even if you had a perfectly reasonable and normal SIL who was approaching this like a responsible adult you would not get $12,500.
So this news eventually gets you out of gift-tax obligations (correct? probably? from what everyone else possessing valid information has said?) if you and Paul end up giving the damn thing to her BUT BUT BUT what about the money you’ve already practically gifted Paul’s sister for repairs? Even if she believes it’s his rightful half, his investment, his responsibility (and it seems like he agrees with her), I feel she should pay that stuff back. That’s only fair, right? I personally would expect reimbursments, especially as you are married to him and share finances (unless he has been helping her with private personal money? I don’t know, I’m just trying to be thoughtful and fair), but seems like it may not be worth the trouble now…ugh, what a frustrating situation. Hoping things turn out well! Or at least not super extra stupid.
Could you possibly sell your sister-in-law your half of the house for the (nominal) price of what you’ve contributed in repairs so far? So it feels like less of a straight-up gift for both of you but puts you financially back where you were when you first inherited it?
The good thing is, we haven’t paid anything in repairs yet: his sister has wanted to wait until the estate was settled (presumably hoping to use cash from the estate to pay for everything). So far it’s been all theoretical: she tells Paul that “they” need to have the roof replaced, etc.
Even more enthusiastically than before, I say give it to her! You’d be SO much better off. And so would she. Wins all around!
I wrote about this when you brought it up a few days ago but while I was showering this morning, I came up with a solution. Then, I read this blog and nearly fell over with the value of $25,000!!! (I just bought a car for more than that and I’m a realtor and have never, ever seen a property for so little.) Anyway, that’s still 12,500 that is YOURS! Tell your sil that you will give her the property but that you will put a $10.000 lien on the property so that when she sells it or dies, the first $10,000 goes to you or your heirs. (see, you’re giving her a deal) This is what is done in divorce. For instance, husband and wife get a divorce, wife (for sake of argument) stays in the house with children. Husband turns deed over to wife but maintains a certain interest in the property.(a lien against the property much like a mortgage lien) Say they have no mortgage and the property is worth $100,000 at the time of the divorce. The judge gives him $50,000 in equity and the wife $50,000. When she sells, (usually when the kids are out of high school which is stipulated in the divorce) he gets his 50,000 and she gets whatever the remainder is. Historically, it’s been more than the original amount because of appreciation but lately, of course, values have fallen. Anyway, he no longer owns the property upon signing over the deed and therefore has no liability or obligation to it. If the wife were to run it down and come out with nothing then she’s sol. So, Swistle, Paul would become a lien holder much like a mortgage. His sister could not put a mortgage on the property or borrow against it without his permission, which he would not give, hopefully. (not that a mortgage company would get anywhere near this property as things are now) Anyway, my suggestion is that IF she doesn’t like the offer, then Paul says, “then we sell, Sis.” I’ll take my money now or later, it’s up to you. You own it or find somewhere else to live. By the way, unlike a mortgage, she would not make payments to you.
My advice is still the same: $11,750 is $11,750. ($25,000 minus 6% real estate commission and then divided by 2). That would buy a lot on clearance at Target! It would be a handsome down payment on a vehicle, it would be $2350 a piece in your kids’ college accounts. However, a new roof would eat that up entirely. If I were Paul, I’d let my sister know that I’m not interested in sinking any money into the property and that she has 2 choices: either sell the house “as is” and split the proceeds or she buys out his half. BTW, I don’t think this conversation need be confrontational, just matter of fact. I think you teach people how to treat you and if Paul lets his sister walk all over him in this situation, I promise you it won’t be the last time. Good luck!
I so want to know more about the SIL. Like, do we like her or is she kinda like MIL and all the details and whatnot. Now I’m just SO curious. I like in GA and even I am amazed at 25K home price! That is nuts! But still, 12,500 is 12,500. I probably wouldn’t just leave that on the table, but I am also at a point in my like where I’d just about do anything for a surprise 12, 500.
Wow. I don’t envy you in this situation ONE iota.
My initial thought on reading this debacle (all installments read in one sitting), was GIVE IT! GIVE IT! GIVE IT!
But now, reading the entirely rational thoughts above and how $10-12K is still $10-12K and it is YOURS, oh DRAT I just don’t know.
But then I am remembering that there are no logical solutions here, as logic ceased to exist when SIL decided she could live there for free and force YOU to pay for it, and then DH acquiesced. So, unless DH is willing to fight for his share in ANY way, the point may be moot. But, if DH will go for the lien, that sounds like a good idea. BUT, then you are still legally linked to the house. Yuck.
I guess I would be inclined to run, run, RUN away, and never, ever again have to deal with the house or SIL for any legal reason whatsoever. Make 2010 the last year you have to address this issue on your taxes. Otherwise, when SIL sells, in 10 years or 30 years or whatever, and you are trying to collect lien, will the legal hassle and tax problems THEN really be worth the stupid $10-12K?!?!?
Sigh. So hard. Sorry.
I like CC Donna’s lein suggestion, IF and only if SIL will respect the fact that it means you and Paul are off the hook for repairs (any increase in the house’s value won’t affect you, after all, so she’ll get the full benefit from it). But if there are likley to be future arguments that Paul would cave on, it might be financially better to just bail.
It sucks, sucks, sucks, SUCKS that the $ that could have gone to kids’ college funds won’t be there, but it all boils down to what approaches Paul is comfortable with. Wisdomandpeace has a good point about just being upfront with SIL and standing firm, but that only works if you want to, you know, stand firm.
And thirding (or whatever) the advice to make sure that the lawyer handling everything makes sure that there aren’t outstanding legal obligations or tax implications in whatever you decide, and asking SIL to cover the costs associated with giving her the house, if that’s your choice.
i, too, just died at the assessment of her house. AND PROPERTY! OH MAH GAH. i realize $12k is $12k but… OH MAH GAH. i know housing markets are more depressed, like, everywhere else aside from where i live, but if i were OFFERED a $25k house/lot with no strings attached i’d probably turn it down because it MUST be in such bad shape it would be a money pit, right..!?? $25k! for an entire HOUSE and the land it’s on! i will stop exclamation pointing now!
It seems like even though it has a fair market appraisal, is there really a market for a house like this? Could it actually be sold? If it’s in such a cheap/depressed area it seems like one of those houses that just ends up abandoned eventually. It seems like there is the possibility of money from the house, but the reality of the situation seems like there will never be money from the house. (I greatly dislike dealing with crazy people and I would give away the house.) Good luck!!
I don’t think you could even get a cardboard box in an alley for that price here in Vancouver. But with that new info in mind: Dooooooo eeeeetttt. Give it to her. Wash yours hands of the whole thing.
What CC Donna said! That sounds like something I could live with if it were me, and she sounds like she knows what she’s talking about.
Get an attorney. Draw up paperwork and walk away from the house. I wouldn’t talk to her about “giving” her anything until you are all seated in front of an attorney with paperwork to sign legally giving her the house.
Family. It just makes you wonder…
What anon says above. Attorney paperwork house gone. WTF? You will spend more in repairs and strife and fretting than you will ever get out of that house. EVAR!!1!
Megan- I had to think about it a bit! I’ve only met her a few times, though two of those times she was staying with us for a week or two so I got a pretty good idea. I’d say we mostly DON’T like her: she’s a stubborn irrational bossy type like her mother. All her roommates have thrown her out, and she’s been “let go” from several jobs. But, probably because she’s younger, I feel like there’s HOPE for her still. Also, she rolled her eyes at her mom.
I just sent you a message on Twitter (I just now read all of these entries about the house stuff). I can give you all kinds of Facts and Numbers about the tax side of this, if you haven’t gotten enough info from the Internet already. I’m actually a CPA specilizing in real estate (CONVENIENT!) so this is related to what I do all day, every day. You have my email address.
A house isn’t always an asset, sometimes it’s a BIG OL WHITE ELEPHANT, and HUNGRY white elephant. Give it to her, and may God Bless.
I would give it to her as well. In this market, I doubt you could sell for full appraisal. Most buyers expect the sellers to help with closing costs, there will be commission to pay, plus any taxes you incur as a result of getting the money from selling. In the end even if you do sell the house you won’t get $12,500 out of it.
Save yourself the headache and the out of pocket expenses.