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What can three siblings do if one refuses to sell inherited property?

What can three siblings do if one refuses to sell inherited property?

Q: Does a remainderman get a step up in basis at death?

Yes, when a remainderman dies, their interest in the property receives a step-up in basis to the fair market value at the time of their death. This means that if the property is sold after their death, capital gains tax will be calculated based on the stepped-up value, potentially reducing tax liability.

Q: What is the basis of inherited property with a life estate?

The basis of inherited property with a life estate is typically the fair market value at the date of the decedent's death. This stepped-up basis applies to the remaindermen, allowing them to minimize capital gains taxes if they sell the property after the life tenant's death.

Q: Who pays property taxes on a life estate?

In a life estate, the life tenant is generally responsible for paying property taxes, as they have the right to use and benefit from the property. However, the remaindermen may also be liable for taxes if the life tenant fails to pay, depending on the specific terms of the life estate agreement.

Q: What happens if the remainderman in a life estate deed dies?

If a remainderman in a life estate deed dies, their interest in the property typically passes to their heirs or beneficiaries. The life estate remains unaffected until the life tenant's death, at which point the property will transfer to the surviving remaindermen or their heirs.

Full question:

My father created a life estate for her four kids for farm property in Iowa. My mother receives the income from this property until her death. After her death, the four kids can sell the property. My question: What options are available if three of the four want to sell the property but the fourth does not? How do the three force the fourth to sign the sale document?

Category: Real Property
Subcategory: Joint Tenants
Date: 04/07/2025
State: Iowa

Answer:

The options for the three siblings depend on how the title was established when the life estate was created. Typically, if the siblings hold the property as joint tenants, they share ownership equally. In this case, all joint tenants must agree and sign to sell the property. If one sibling refuses, the others cannot force a sale without that sibling's consent.

If the siblings are tenants in common, they each own an undivided interest in the property. This means they can sell their individual shares without needing the consent of the other owners. However, selling the entire property would still require unanimous agreement unless a court intervenes.

In both scenarios, the siblings may consider legal action to resolve disputes, but the specifics will depend on Iowa law and the details of the ownership arrangement.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What happens when the remainderman dies in a life estate?

If a remainderman dies before the life tenant, their interest in the property typically passes to their heirs or beneficiaries, depending on their estate plan. The life estate remains intact until the life tenant's death. After the life tenant passes away, the property will transfer to the remaining remaindermen or their heirs, as specified in the estate plan or by law.

Does a remainderman get a step up in basis at death?

How does a life estate work in Iowa?

In Iowa, a life estate allows one person, the life tenant, to use and benefit from a property during their lifetime. Upon the life tenant's death, the property automatically passes to the remaindermen, who hold a future interest. The life tenant cannot sell the property without the consent of the remaindermen, as their interest is tied to the life tenant's rights.