8/13/10 4:13 AM
I've been true to my word in keeping it as civil and trying to stay diplomatic with this fragile issue of divvying up family inheritances and house deed changing.
After I sent my first email added into the first post introducing my current family issues, I received a reply from my (half) brother, S.
His reply:
"Yep, I've had the same problem from my mom when I was a kid. I could never get the full truth form my mom, and decided that when I am out on my own that I really don't want to depend on her. But here the what's going on.
After Dad passed away, it seems all legal papers were processed so that all property transferred to her. Previous children that Dad was responsible for could challenge that. But that road I had no interest in.
When your mom was going to rent the house using Government Rent assistance (the U.S. government pay for part of the rent and the impoverished renters pay a partial rent). The government requirement to keep landlords honest kicked in, which included a search on the owner ship of the house. That is when it was found that the owner ship was split accordingly. Wife is 50%, Dad's 50% was split 3 ways 1/3 wife, 1/3 Bryan, 1/3 Steven (1/3 of the 50% is 16.7%). So you and your mom has 83.3%. To use the government subsidy, all owners must agree/benefit (that's how government keeps people on their program honest). But if it is rented without the government subsidy, all owners do not have to do this sign-off. Fixing the Deed - it could be transferring power of attorney or ownership to her - don't know.
Now where did the $8000 number come from.
When people responsible for children from more than one family passes away, inheritance is usually settled/divided after they pass. That did not happen with us, and everything appeared to have passed to your mom. At the time dad passed away, the house was valued at $129,220 (from property tax roll), but had a bank loan against it of $77,498. The difference is $51,722, which would be the real value of the house. 16.7% of that is $8637. Now if you were to sell the house the cost to sell it would be 4.5% to 7% if you did not have to fix the house up. Using 7% deducted, that would be $8032. I helped you mom calculate that based on her monthly payment, length of loan and loan start date when she asked me - she didn't have a handle on it originally.
When your mom called, she wanted me to sign-off on the papers, all rent will go to the mortgage. She says when she pass away, the sale of the house would be split between you and me. I heard different stories from her on what she wanted to do with the house, and just don't know. My mom also made such promises and I was disappointed. I don't want to go down that road again. I said that I can sign the papers for the government if we had an agreement that she could reimburse the 16.7% share to me any time in 10 years or if the house is sold sooner. This is basically "kicking the can down the road" for ten years and changes nothing for her plans now. So I never asked for cash now. She wanted to push for a price and started haggling about the poor condition of the house and so forth. The house was not kept up in recent years and the market also dropped (maybe $115,000 now). I said I'll look in to selling costs and get back to her tomorrow. All this news hit me in one night. She call me a short time later and said she did not like the ten year deadline and forget everything and she was going to stay with the house.
Next question - What I need, or what is right.
As I see it: Our dad spent the first half of his adult life with family #1 (26 years with me) and the second half of his adult life with family #2. Before this week family #1 got 0% inheritance, and family #2 got 100%. After what happened with renting above family #1 got 16.7% and family #2 got 83.3%. This still don't seem fairly weighted to me, but who said life was fair.
What could I have done with the 16.7% in the next 10 years:
Market value is 5% over the property tax or $135,681. Minus loan of $77,498 is $58,183. 16.7% is $9716.
3 years have passed, if this amount was delivered back then it would be 6% higher (using 2% CDs avg. over 3 years) or $10,298. In the next ten years at 3% CDs average would be up to $13,387. That's what I could have done with that in the next 10 years.
But, the agreement I proposed to your mom would have pegged it around $8,000 to be paid any time in ten years. The real value of the future dollars would be (4% average inflation for 13 years) actual buying power would be $4160 relative to when dad passed away. No bank of any kind would operate in those terms. I believe hyper-inflation will be starting in 3 years from now, so I think the buying power in 10 years would be more like $2000. No, that proposal was not made to make money, and never required cash now.
I don't want family #1 to be zero. And yes, my offers still on the table.
Why 10 years? I don't want things to drag on forever. A friend of mine with the same eating habits as me died this year at age 51, in 10 years I would be 56.
That's my point of view of what happened. This doesn't help but at least you know more.
S.C.
PS - You really need to pick a four year degree that you can make a good living off of in case things fuck-up.
The above is the type of shit that would happen with my mom, that's why I'm still single, and don't think I will ever get hitched - too much baggage. Also, why I'm tight with money and don't want to mix mine with anyone's. It's the stress you are feeling right now because of other peoples decisions."
I love how much faith he has in me to succeed in the life I've chosen so far. I'm an extremely pessimistic person, but my future career choice is the one thing I feel really sure I'd be comfortable with. I find it funny that it's also the one thing that he picks on the most. I don't mind, though. At least he's caring for me... in that strange almost backhanded supporting way. His admittance that his terrible eating habits and lifestyle (he is... very overweight) are expediting his fall into the grave make me sad because I know he doesn't change out of pure laziness.
My response:
I accept your points, but would also like to bring up a couple other things that have been floating around.
-
- The Lin family (the old family friends that Dad was very close with) would like to remind you that mother gave you a $30,000 loan with no interest or deadline when you bought your first house.
- Family #2 (what you call us) paid for all of Dad's medical bills and funeral costs, which totaled over a million dollars without the cancer insurance.
- Something about the calculations that you two worked out did not even include closing costs and agent fees and whatnot.
- A significant portion of the paying off of the house that resulted in the ~$51,000 was from mother after Dad's passing because Dad never really paid for the house as much as he just refinanced it over and over.
Honestly, I don't mind you trying to get your fair share, but I'd just feel better if you waited until AFTER we change the deed and all. If there's some way we can draw up an agreement to say something along the lines of (in blunt terms) "fix the deed now and argue about your share later", that would be preferable as the storage room we're currently keeping all of our furniture in is about to hit a deadline and we have not been able to get the house inspected yet. You should know that the main reason we're trying to fix the deed and rent out the house is so we can pay off the house ASAP. The hope is that by renting out the house for a higher price than she rents an apartment close to work, Mother will be able to pull out a decent margin with which to pay off the home. Mother's hopeful calculations were putting the total pay-off date for the house in four years--right as I finish my undergrad. That would probably leave you with a bigger share later anyway compared to the hyperinflated $8000 that's technically ~$2000.
I can definitely see mother maybe misunderstanding something you said about paying the money now because when she gets worked up, she doesn't listen to anything and takes everything as a threat. Whether or not she admits it, it is true and I should know. I honestly don't know what kind of angle she is working on right now, but I know she's getting vindictive and more stressed out by it than you probably are. She is also playing the "disrespect the family" card when she says you referred to Dad as "[her] husband" instead of our Dad. (That does not matter to me as much--probably just semantics she uses to work herself up, in my opinion.)
All in all, I don't want to take any sides in this other than the "get this done smoothly and reasonably fairly" side. Reasonably fair because I know you probably missed out on a lot of things with "family #1" that can't really be fixed. What's important to me right now is getting things to go through so I can leave to college knowing I have a home to come back to. At this point, mother has literally told me that I can pack and leave for college, and then call her when I'm driving back to find out where I'm going to be living, an option that doesn't sound pleasant at all.
-b.
PS: I feel like you should watch your health more, bro. I know it seems like you've surrendered yourself to a life full of unhealthy habits, citing the cliche "old habits die hard", but I feel like there's a certain satisfaction and serenity that comes with making positive changes in your life. Just sayin'. And I'm sure I'll figure out a way to live if I can't make it to med school--I'm resourceful enough. Thanks for caring, though. I appreciate it.
I suppose we'll see how this goes. There has to be a way to work this out and please everyone decently.
-b.
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