Distribution among Family Members

Dated: May 5 2020

Views: 24

Chapter 7

Distribution among Family Members

            The most decent and courteous manner of equally dividing the inheritance from a deceased family member would follow accordingly:

#1. Select Items that You or Your Family Members Intend to Keep

            The first step requires time and energy to go through every item in the house that you or your family members intend to keep. It is a grave loss, and painful feeling to endure the loss of a loved one, not to mention going through all their possession they have left.

            Before moving on to next step in selling or auctioning the items, it is crucial to establish a boundary or limit to whoever possesses the right to keep the sentimental items or properties between the family members especially among siblings.

            If the deceased family member left a will, then all should be abided by what is stated within that will, otherwise by controlling state law or law of intestate succession if there is not will written.

            If the will or law requires the property to be divided equally, then you must follow it.

            For better organization, you are encouraged to separate the items you wish to keep in a separate container or at you place to avoid confusion of selling, donating or throwing away the objects.

            Mutual agreement between your siblings or other family members can come into terms of who will keep the sentimental objects without having any disputes. There is an algorithm developed to fairly distribute an inheritance among the siblings within the family. The algorithm developed is to divide the inheritance between them equally. There are a number of items ranging from furniture, clothes, jewelry, to the house itself.

 

 

37

The family can resort to working with a mediator to resolve a fair distribution of items or properties between the family members or siblings.

            This would be a fair system when the family does not wish to liquidate the assets or rejects joint ownership between the siblings. However, only under the following circumstances will the algorithm be carried out effectively and fairly.

            Each family member will receive the same number of items. There are some items that may not be assigned to any of the members, and will require time to further consultation consideration outside of this algorithm. Each member then will submit his or her own prioritized list of items to the mediator.

            After the allocation, the mediator will prepare a list for each member of the family of the items allocated for each of them.

            Each member will then show their list of preferred items to the other members.

            It is important to note that it is not completely compulsory for you to store or keep any of the items your loved ones left behind unless the items really possesses sentimental value or is significant to you. In this way, you will not become a hoarder by keeping any items inside your home that takes up living space unnecessarily.

            If you come across any papers, be sure to thoroughly review each one before proceeding to throw them out.

            Important key financial documents such as wills, trusts, addenda, real estate deeds and titles should be kept. A simple tip on what items you should keep is to preserve any sentimental photos or memorabilia that are irreplaceable.

 

 

 

 

 

 

38

#2. Sell Any Valuable Items or Property and

Distribute the Net Profit Equally

            In a scenario where you and your siblings have inherited real estate from your deceased parents, it is important to seek mutual terms as to whether the property should be sold and split the profit immediately or simply keep and share the use of the house.

            Any auction or estate sale company would recommend that you keep every single item in the house before discarding them. People will pay you for these items, plus it saves you time and hassle of throwing them out. In certain circumstances, one sibling may want to keep the home while others have no interest in it.

            Non-prorate distribution or equal division of value is the option if there are other assets in the estate. Through this agreement, the one who wants the house gets to keep it while the others get cash or other assets, but ultimately everyone will receive equal value of assets.

            The final option would be that the sibling who wants the house would simply have to buy out the other siblings’ interests in it. You may also seek professional advice such as from real estate investors, agents or attorneys.

            They can give your personal reviews or feedback on how to sell your house at the highest possible value in the market. Information you might want to look out for is the cost basis, what is owed on the house or any outstanding liens.

            They can help you in making selling decisions. You can hire an estate appraiser to value furniture, jewelry and antiques.

            Such professional can provide you an estimate for any valuable item, charging an hourly fee depending on location of the house, and type of appraisal you want.

            To find a trustworthy appraiser, you can do online research and see their credentials.

 

 

 

39

Nowadays, it is more convenient and common practice to sell any unwanted item that you wish to throw out while earning extra cash online.

            There are several platforms on the internet where you can sell discarded items such as eBay and Amazon.

            Simply take a picture, write a few descriptive sentences about the item, and name your price. Online shoppers will simply bid on the items they wish to buy.

            Another traditional method would be simply to sell it in public such as having an estate sale. Here is a tip on running and effective sale in your neighborhood: price every single item you want to sell.

            Seek extra hands to help you conduct the business such as running the cash box, or help in promoting and selling the item. Remember that when you are running the sale, you will be doing it for more than a day, at most four days.

            Make sure to do online advertising in your community to get word out about your sale.

            This will help to attract more customers from areas close-by to come to your sale. It is important that you do not post the location of the sale until the very day itself to avoid any suspicious people snooping around the house looking at the items or the possibility of theft and robbery.

            You can share the location of the city or district to let people know the venue, and then you share the address on the day you wish to make a sale. Certain cities require some sort of permit for holding a sale. Do ensure that you comply with the local authorities.

            It would be helpful for the customers if you post signs or directions in the neighborhood to assist people in directing them towards your sale.

 

 

 

 

40

If you are unable to sell all of your remaining items on the last day of your sale, it is recommended that you set 50% discount price, or simply give it away for free.

            However, if running an estate sale it too much of burden for you or your family members to handle, you can hire an estate sale or auction company to handle the sale for you.

            They will get paid based on the percentage of the sales after they have quoted it with you upfront. Expect to pay at least 30% to 50% of the entire profit of the sale.

            Another option would be to hire an estate liquidation company to handle a sale. A liquidator is someone you can hire to clear off any items you don’t intend to keep, and have decided to sell, discard or donate.

            Nevertheless, it is critical that you would interview the firms to find the most reliable, credible and qualified company since the industry is rarely regulated, thus having little training or experience.

            Like searching for real estate agent, it is important that you do a background check on the company, search for contact information, and call any previous clients regarding their opinions and experiences of working with them.

            Typical estate liquidators keep about 35% to 40% of the sales profit, but this percentage can vary depending on services offered.

            So, discuss with the company regarding the research, appraisal and price your items, duration of the sale, and how much negotiating with the buyers it will do.

            You may also do a clean-up or catalog each items so that you might sell in a garage sale or estate sale.

            Discuss the clean-up plan after the sale has ended such as clearing out items or cleaning services to determine if requires any additional fees.

 

 

 

41

If you are not keen to sell the house, you may also rent it out. You and your siblings can benefit from the profit shares while still possessing ownership of the house.

            This will also give additional time to gather thoughts and discuss among each other to decide on the next phase in ownership of the property.

#3. Donate Any Recyclable Items to Those in Need

            At a certain point, you may find yourself wanting to donate certain items either during or after the sale.

            Donation can be beneficial, as it is a generous charitable act to help those in need instead of simply throwing items away into a dumpster. You have options of donating junk to orphanages, the homeless, or disaster victims.

            Items that you no longer need can either be clothes, books, cutlery or even toys. Sometimes, you can request a transport service truck if you wish to donate a lot of unwanted items.

            It is a great way to give back to the community, and to be rewarded for a kind act. Furthermore, you can also get tax deductions for you contribution. The available tax deduction to the donor depends in part on the donor’s items value, which is the value of the items for taxation purposes at the time that it is inherited.

            Bear in mind that if a charitable donation is not exactly authorized in a will or trust, the estate may not properly take a deduction for the donation.

            So, the estate is not eligible for deductions for the transfers to charity by the beneficiaries, even if their intentions were good.

            However, the individuals may donate certain items, which were passed to them from an estate and can claim a charitable deduction on their personal tax returns.

 

 

 

 

42

            An income tax deduction for a charitable contribution donation of assets is normally the fair market value of that asset, minus any appreciation or capital gain.

            The value of the charitable deduction depends on the time the property was acquired. You must also consider the laws in your local area regarding charitable donations and estate taxes, since these may change at time. There may be additional regulations regarding taxation on estates and property transfers.

            Community property states have different rules for the calculation of value of the property inherited from the family members. It is advisable to consult with a local certified tax professional to assure that your donation of inherited property is carried out in the most economical and efficient manner in accordance to time and place of you donation.

            If you are unsure or confused about tax deductions for charities and estates, you should refer to you attorney or online for better understanding.

#4. Throw Away Any Remaining Items that Have No Significant or Sentimental Value

            After you had gone through the process of separating items for yourself, for your family members, for sale and for donation, the last step to finally clear the remaining items, would be to throw them away.

            Remaining junk can vary in size and the proper way to discard them depends on the amount of junk as well. You may fit them in garbage bags or empty boxes and safety discard at the nearest disposable waste sites. You might need to call your local garbage pickup service to dispose of the items properly if you line up piles of garbage at the street curb.

            Otherwise, the garbage men may simply ignore it. Depending on the city you reside in, there may be a fee for this service, but it doesn’t hurt to do a bit of research. Charges may include delivery and pickup of a dumpster when it is full.

 

 

 

43

            A helpful tip would be to get the largest dumpster than you need because there is a high chance that it may fill up quickly. Clearing old items out will require extra time and energy. You may need extra hands to do some clean up. An alternative would be to hire a junk removal company that can provide both dumpster or dump truck and labor.

            Last reminder before throwing away any old items is to always ensure that you would never regret discarding them unless they possess any sentimental value at all. Otherwise, it is wise to donate it if no one wishes to buy it from you.

            In life, nothing can tear a family apart more that money. Honesty and integrity will play an important role in the distribution of the inheritance between families as well.

            Despite careful planning and a will to guide the inheritance distribution, this is a subjective and sensitive matter in terms of rights and ownership.

            Another way is to assign specific items that will go to a specific person in a letter of instruction. You could also set up a process for the heirs to use to decide who gets what, for example letting the executor decide, sell the disputed object be force and distribute the money equally. Last resort would be to put all items up for auction and let heirs bid on them first.

            Favoritism can also lead to dispute between siblings unless the parents can show fairness and impartiality towards their children. Open floor discussions between parents and growing children will be great alternatives to explain the inheritance distributions.

            Issues or any objections can be discussed instantly with reason and understanding.

            Do remember that equal distribution of inheritance does not necessarily imply fairness.

            At certain times, you may need to provide extra support in life to one of your heirs while other may be financially stable.

            Your inheritance needs to be allocated to your heirs such as share from a family business in proportion to their workload.

Blog author image

Oscar Vasquez

For the majority of people, the purchase or sale of a home is their largest single investment. My goal is to guide you successfully and easily through the contractual, investment and emotional decisio....

Latest Blog Posts

Buyer & Seller Perks In Today's Market

Buyer & Seller Perks In Today's MarketRight now, the housing market is full of outstanding opportunities for both buyers and sellers. Whether you’re thinking of buying your first

Read More

Mortgage Assistance Options for Homeowners

Mortgage Assistance Options for HomeownersLearn how the coronavirus relief bill passed in March aims to help homeowners manage loan payments.If you think you’re going to be late on a mortgage

Read More

´╗┐Home Prices What Happened In 2020

Home Prices What Happened In 2020? Will It Happen Again?The real estate market was on fire during the second half of 2020. Buyer demand was way up, and the supply of homes available for sale hit

Read More

3 Ways Home Equity Can Have a Major Impact on Your Life

3 Ways Home Equity Can Have a Major Impact on Your LifeThere have been a lot of headlines reporting on how homeowner equity (the difference between the current market value of your home and the

Read More