Posted by CarolFL on March 07, 2000 at 11:48:33:
kind soul that you are, could end up there! I think that’s a riot.
This is a very common practice in France, where the ads in the paper read : " viager sur deux tetes " … life right on two heads (meaning two folks) or one, as the case may be. I found it somewhat appalling at first, but can see where it can serve everyone’s purposes.
Can this be worked? - Posted by Jeff
Posted by Jeff on March 05, 2000 at 21:06:58:
Here’s a strange one for you. Can an inheritance be purchased if the inheritance (a home - and only a portion of the home since it is willed to more than one child) cannot be sold until the passing of the widow? (a second wife; the home goes to the children from the first marriage) The real complication of course is that the ‘term’ is unknown. The seller understands that the value would be discounted to the purchaser, and will be giving up the future appreciation of the property. (a real possibility in the area) It seem as though someone wishing to invest and willing to wait on the appreciation for an unknown period could make some money but I have no idea on how to structure it or how to approach an investor. (or who to approach) There are no leans on the property, the will is uncontested and the seller would not be circumventing any party, either the other inheritors or the widow. The total value of the property is probably (unknown at this time for sure) around $130 - $150K, split four ways so it would be a relatively small investment.
Any ideas?
Re: Can this be worked? - Posted by John Behle
Posted by John Behle on March 06, 2000 at 12:12:33:
Yes, they can sell it, but have an attorney handle this one.
Possibly… - Posted by Michael Morrongiello
Posted by Michael Morrongiello on March 06, 2000 at 12:08:30:
Jeff:
If the property is free and clear of any Debt, I believe it is possible for one of the four intended heirs to contracturally sell their 1/4 interest in the property to take effect upon completion of probate.
Your right however the unknowns create a serious discounted pay price for that future interest.
Michael Morrongiello
Re: Can this be worked? - Posted by Jeff
Posted by Jeff on March 06, 2000 at 16:54:53:
Just curious, John. Why have an attorney handle this one as opposed to any other transaction? What specifically would concern you on this deal? The other inheritors perhaps? Also, without knowing the term, how would you structure the deal, (in general terms of course, I’m not asking YOU to be the lawyer) and how can you determine what a good discount would be on a deal such as this?
My concerns - Posted by John Behle
Posted by John Behle on March 06, 2000 at 23:51:14:
With the little details I have, I would have some concerns. If I were looking at the deal, I would read through all the documents and details and I might be willing to forgo an attorney. Yet, I have some extensive training in real estate law and some in estate planning issues.
My concern is verifying the interest of the seller and then securing your interest. If it was for my own purchase, I might be confident about it after reading some of the documents and verifying details. Not knowing your background, unless you were an attorney, I have to be quite concerned about potential risks to you.
On simple note deals, no problem. On simple documents and contracts, no problem. In complicated situations, I think a competent attorney can be valuable.
My discount would be based on “worst case scenario” like this person lives to 110.
Re: My concerns - Posted by phil fernandez
Posted by phil fernandez on March 07, 2000 at 08:28:32:
I once gave a woman a life estate when she was 89. She lived to be 104. So certainly the lifespan is the wild card in this scenerio.