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This issue can arise with real estate or personal property, but the discussion will focus on real estate. When multiple heirs inherit the same property, the outcomes depend on whether none of the heirs want the property, only one of the heirs wants the property, or multiple heirs want the property.
If none of the children want the property, then the property will be sold, and they will split the net proceeds equally. This can be done as part of the estate, or heirs can all take title and sell the property later after the estate closes.
If only one child wants the property, then that child can simply take over ownership of that property, and its value will be deducted from the total value of the assets that child would have received apart from the property. They will get the home but will have a much lower share of the remaining assets than their siblings.
What happens if multiple children want the same property and can not agree on how to share it? In this case, if the estate is supervised, the court will likely determine what happens to the property.
In an unsupervised estate, the dispute could be resolved through a private agreement, a private auction among the heirs, or through a forced public sale. In most cases, each child will be given the opportunity to make an offer on the real estate, which will eventually be sold to the child willing to pay (or give up) the most value for it.
What if one heir wants to force a sale? In cases where the estate no longer possesses the property, but it has been given to multiple heirs, any one of the new owners can force the sale of the property through what is known as a “Partition Action” through the courts. These forced sales generally do not yield the best value, so it is always better to try to work out a resolution while the estate is pending rather than transfer the real estate to multiple people who may later discover that they don’t agree on its use, leaving a partition action as a viable solution to any one of them.
Attorney Thomas Scifres is a practiced, respected estate planning attorney serving Indiana. For over 30 years, he’s helped clients just like you navigate complex probate issues, including disputes over property and asset division.
Have questions, or in need of legal help? Reach out to Thomas E. Scifres PC, for an initial consultation today.
Probate laws are designed to ”give effect to” the wishes of the person who made the will after they pass away. Therefore, any complaint that an heir has about what was left to them (or what was not left to them) will not usually go very far unless there are grounds to contest the will itself.
If disputes arise as to how a personal representative of the estate is distributing assets, your estate attorney and the personal representative can first attempt to resolve the dispute without the court intervening. If no agreement can be reached, any party, including the personal representative of the estate, can seek a ruling by the court.
Generally speaking, no, the executor of an estate (also known as the estate’s “personal representative”) can not generally “favor” one heir over another. The personal representative’s role is simply to execute the will (to “give effect to” the decedent’s wishes) or to distribute assets according to state laws if the deceased person did not have a will. In carrying out this job, the personal representative has a “fiduciary duty” to act in the best interests of the heirs. To “favor” one heir over another could be a breach of that duty.
However, some wills give the personal representative the power to allocate specific assets to specific people if and when conflicts arise between heirs. In such cases, such “favor” might be allowed.
In other cases, a personal representative could be granted the authority to determine which beneficiary will receive assets that were not left to anyone in particular, especially in cases where two or more children want the same item.
It is a common observation we hear that, “a family member’s death brings out the ‘greed’ in everyone.” That is not our observation. We find that most between heirs are not so much legal or financial as they are personal or emotional. These disputes often result from a lifetime of unresolved past hurts that become visible now that a parent has passed away.
Should your family see such disputes, we will spend time with those who are upset over asset division and explain that the role of the executor is simply to carry out the terms of the will as we try to better understand their complaints.
In cases where there is a dispute over a specific item, we often find that a “family auction” between heirs is helpful. This process allows interested parties to give up other assets in exchange for the contested item. Whoever is willing to give up the most receives the item. The other option would be a public, formal auction, where heirs are allowed to bid against the general public.
For more information on navigating probate with multiple heirs in Indiana, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (812) 359-8007 today.
Attorney Thomas Scifres is a practiced, respected estate planning attorney serving Indiana. For over 30 years, he’s helped clients just like you navigate complex probate issues, including disputes over property and asset division.
Have questions, or in need of legal help? Reach out to Thomas E. Scifres PC, for an initial consultation today.
