Keystone Law Group Managing Partner Shawn Kerendian discusses the five most common methods for dividing a home inherited by siblings. Read the complete article below for more details. Click the YouTube “Subscribe” button to be notified when new videos are published.
Having trouble deciding how to divide inherited property between siblings? Learn your legal options.
Although inheriting a house with siblings may seem straightforward, it often is anything but. For example, what happens when one sibling is living in an inherited property and refuses to sell? Can siblings force the sale of inherited property?
When a will, trust or intestate succession laws call for an inherited property split between siblings, disagreements may arise around what to do with the property. Perhaps one sibling wants to sell the property, but the other siblings don’t. Perhaps a sibling is residing in a jointly inherited property rent-free, unfairly benefiting at the other siblings’ expense.
No matter the circumstances, it’s important to understand what to expect, the legal complications that may emerge and how to navigate them to protect your inheritance rights.
In these situations, having an experienced probate attorney by your side can be invaluable — not only in securing a favorable outcome, but also in helping preserve family relationships.
How to Divide Inherited Property Between Siblings
Dividing inherited property between siblings can be complicated. Beyond determining whether you can realistically afford to take ownership of the home, you also need to weigh the preferences and circumstances of your siblings.
The most common ways to divide an inherited home between siblings include:
- Selling the Home: Often the simplest option, siblings can sell the property and split the proceeds according to the shares designated in the will, trust or intestate succession laws.
- Renting the Home: If no sibling wants to live in the property, but they are not ready to sell, leasing the home allows them to generate rental income to share.
- Buyout: When one sibling wishes to keep the home, they can buy out the others’ ownership interests.
- Private Arrangements: Siblings may negotiate their own terms for dividing property. For instance, if the estate includes multiple properties, one sibling may take the primary residence while another takes a vacation home of similar value. Alternatively, if one sibling cannot afford a lump-sum buyout, they may agree to pay installments with interest or secure a loan against the property to compensate the others.
- Partition Actions: When an agreement about how to divide inherited property between siblings cannot be reached, and the siblings who wish to retain ownership are unable or unwilling to buy out the shares of the siblings who wish to sell for at least fair market value, a type of lawsuit known as a partition action can be filed to try to force its sale.
When inheriting a house with siblings, it’s important to review the decedent’s will or trust for guidance on how the property should be divided. Take note of whether you and your siblings were left equal or unequal shares and whether any conditions apply to the property — such as restrictions on selling it.
If the decedent’s estate planning documents are silent on what to do with a property, the executor/administrator or trustee generally can proceed with managing the property as they see fit — provided their decisions align with the best interests of the estate or trust and its beneficiaries.
It is not uncommon for complications to arise when siblings jointly inherit a house. For example, if siblings don’t intend to cohabitate with one another in that house, how can the property be fairly and equitably divided among them?
While some siblings may prefer to sell the house, others may prefer to continue owning the property for its sentimental value. So, who has the right to decide? Can siblings force property sales? Can siblings be forced to retain ownership?
When co-owners cannot agree on how to divide or manage jointly owned property, a partition action may be filed to force a sale or division of the property, but this step can’t be taken until the non-partitioning co-owners are offered the opportunity to buy out the partitioning co-owners’ shares at fair market value, as determined by an independent appraisal.
Keep in mind that, while it is technically possible to defend against a partition action, successfully stopping one is extremely difficult.
What Are Common Problems When Two or More Siblings Inherit a House?
It’s important to understand the types of disputes that can arise when inheriting a house with siblings. Being prepared can help you minimize conflicts or even avoid them altogether.
Discover some of the common disputes that arise when inheriting a house with siblings below.
Can a Sibling Force the Sale of Inherited Property?
When siblings jointly inherit a property, one sibling can generally force the sale of the property through a partition action — even if the other siblings oppose doing so — but not without first giving the siblings who wish to retain ownership the chance to buy out the share of the sibling who is seeking to sell at fair market value.
Suppose three siblings own property together, and one of them loses their job. That sibling may want to sell his share of the property to help make ends meet. However, the other two siblings lack the funds to buy him out and are declining to sell their own. In this instance, the only legal recourse the sibling seeking to sell has is to sue for partition of the property.
To file a partition action, the following conditions must be met:
- At least one co-owner must desire to sell the property against the wishes of the other co-owners, who want to retain ownership.
- The property at issue cannot be physically divided fairly and equitably.
- An opportunity must have been given to the non-partitioning co-owners to buy out the partitioning co-owner’s share at fair market value, as determined by an independent appraisal.
Although it may feel unfair, the law allows even a minority of co-owners to seek termination of co-ownership. In other words, a single sibling can initiate a partition action and ultimately force the sale of the property, even if the majority of siblings strongly wish to keep it.
That said, pursuing a partition action is often not the most practical or cost-effective option. Litigation can be expensive, time-consuming and emotionally taxing, potentially straining family relationships.
A more constructive alternative may be for the sibling who wants out to negotiate a buyout agreement in which their siblings purchase their share. This would allow the siblings who don’t wish to sell the property to retain ownership.
In most cases, a partition lawsuit is considered a last resort when other resolution efforts, such as private agreements or mediation, have failed.
What Happens When One Sibling Is Living in an Inherited Property and Refuses to Sell?
When one sibling is living in an inherited property and refuses to sell, a partition action can generally be brought by the other co-owners to force the sale of the property — even if the sibling who lives there is opposed to selling.
That said, before forcing the sale of the property, the siblings must first give the sibling residing in the property the opportunity to buy out their shares at fair market value.
If the sibling lacks the financial means to do so, it may be worth attempting resolution through alternate means. For example, the sibling inhabiting the property could offer to pay rent to her siblings to remain in the property.
What if My Brother or Sister Is Living Rent-Free in an Inherited House?
Even when a sibling is a co-owner, it can be problematic for them to live rent-free in an inherited house — especially if the property is part of an estate or trust. While the property is part of an estate or trust, it is managed by the personal representative or trustee, who has a fiduciary duty to act in the best interests of both the estate and the beneficiaries.
Because the house could potentially generate rental income if leased, the estate or trust may suffer a financial loss. As a result, a sibling living rent-free could be held personally liable for reimbursing the estate or trust for that lost income.
That said, if the sibling residing in the house is a co-owner, they may have a legal right to occupy it. However, other co-owners could still take legal action to resolve the matter, including pursuing a sale of the property or negotiating a buyout of the residing sibling’s share.
What Happens When Two Siblings Own a Property and One Dies?
When two siblings co-own a property and one dies, what happens to the property depends on how its title is held.
If the siblings own the property as joint tenants with the right of survivorship, the surviving sibling automatically becomes the sole owner through the right of survivorship.
However, if they own the property as tenants in common, the deceased sibling’s share passes to their heirs or beneficiaries according to the terms of their estate plan. That share must go through the probate process unless it is held in a trust. The surviving sibling retains their original interest.
It’s worth noting that tenants in common can hold unequal ownership shares, whereas joint tenants must hold equal shares.
What if a Sibling is Living in a Deceased Parent’s House?
Whether a sibling is permitted to live in a deceased parent’s house depends on whether they have a legal right to the property.
For instance, if the parent left the home to the sibling in a will or trust, the sibling is generally entitled to reside there — so long as no other co-owners object. Similarly, if the will or trust grants the sibling use and enjoyment of the property for their lifetime, they may legally remain in the home.
Outside of these situations, a sibling likely has no legal entitlement to occupy the property. If they refuse to leave, an eviction action may need to be initiated to remove them.
What if Siblings Inherit a House With a Mortgage?
When siblings inherit a house with a mortgage, they will need to take over the mortgage payments in order to keep the house. However, what if one sibling is able to pay their share of the mortgage, but the other siblings can’t?
In this situation, the siblings have several options. They could sell the home and divide the proceeds according to each sibling’s ownership share. Alternatively, they could arrange for the sibling who can afford the mortgage payments to cover them, while the other siblings reimburse that sibling over time, potentially with interest. Another option is for the sibling making the payments to buy out the others’ interests in the property.
Regardless of the arrangement, it’s crucial to ensure the mortgage is paid on time. Falling behind on payments could result in foreclosure and loss of the property.
It’s also worth noting that while a house remains in probate or in a trust, the personal representative or trustee is generally responsible for making mortgage payments. They aren’t absolved of this responsibility until the property is sold or distributed to beneficiaries or heirs.
Useful Tips When Inheriting a House With Siblings
Inheriting a house with siblings can be complicated, not just legally, but emotionally as well. Disagreements over what to do with the property can easily cause tension and strain family relationships.
While conflict may not always be avoidable, it can often be minimized. Below are practical tips for dividing property among siblings.
Carefully review the estate plan.
If the decedent left a will or trust, those documents will usually outline how a property should be divided — often specifying whether the siblings are to receive equal or unequal shares. The will or trust also may specify whether a property can be sold.
If no estate plan exists, intestate succession laws — which are found in California Probate Code sections 6400 – 6455 — will determine ownership and the specific share of the property you may be entitled to if you qualify as an heir-at-law.
Communicate your preferences to the personal representative or trustee.
Because personal representatives and trustees often have the authority to sell property and divide proceeds among beneficiaries instead of transferring title directly, it’s important to notify them early if you prefer for the house to not be sold.
While they may still proceed with a sale if the will or trust allows for it — and provided doing so is in the best interest of the estate and its beneficiaries — communicating your preference ensures your position is considered.
Communicate your preferences to your siblings.
If you are already a co-owner — or will become one — clarify what outcome you want regarding the inherited house and communicate it to your siblings. Doing so early may help you minimize family conflicts and reach a solution that everyone can agree on.
Work with an experienced probate attorney.
While a probate attorney can assist at any stage, having one on your side is especially important when disagreements arise over how to divide inherited property among siblings. An attorney can help prevent conflicts from escalating and guide you and your siblings toward a mutually agreeable solution.
If the dispute escalates to a partition action, having an attorney significantly increases your chances of a successful outcome.
Consider settling property disputes out of court.
When it comes to inherited property splits between siblings, it’s best to resolve matters without going to court, as litigation can quickly become expensive.
Mediation — a negotiation facilitated by a neutral third party, attended with or without a lawyer — is a cost-effective alternative to a full trial. Mediation remains an option through all phases of litigation.
Inheriting a House With Siblings FAQ
Still confused about what’s involved in inheriting a house with siblings? Consult the frequently asked questions below for additional guidance.
If you have specific inquiries, it may be more beneficial for you to reach out to our probate firm directly. We are standing by to assist.
What happens if three siblings equally inherited a house, and one wants to sell but the other two don’t?
When siblings inherit a house together and disagree about selling it, the simplest solution is usually for the siblings who wish to retain ownership of the property to buy out the share of the sibling who wants to sell.
If an immediate buyout isn’t feasible, the siblings can explore alternative private arrangements. For example, the siblings who want to retain the property could agree to purchase the selling sibling’s share over time with interest, or they could offer rent payments in exchange for continued occupancy of the home.
A forced sale through a partition action is usually only available if these efforts fail. Under California law, the siblings who wish to retain ownership must first be offered the chance to purchase the selling sibling’s share at fair market value, as determined by an appraisal. Only if they decline or are unable to purchase their sibling’s interest can the selling sibling obtain a court order authorizing partition by sale.
What is the best way to manage inheritance property with siblings?
Managing inherited property with siblings can be challenging, especially when interests and priorities differ. Focusing on fairness and open communication can help siblings reach a solution that works for everyone.
Start by discussing each sibling’s goals, how expenses and income will be shared and a professional appraisal if a buyout or sale is likely.
If disagreements arise, consider consulting a partition attorney for guidance or using mediation to resolve the dispute without resorting to a court-ordered partition.
Remember, non-partitioning co-owners always have the right to buy out a partitioning co-owner’s share at fair market value before a forced sale occurs.
What if disagreements arise over how to divide inherited land between siblings?
If siblings can’t agree on how to divide inherited land, the first step is for them to determine whether it’s feasible to partition the property in kind (i.e., physically divide it).
While uniform land typically is simpler to divide, it’s not necessarily a requirement for partitions in kind. For example, the court could order non-uniform land to be evenly divided in kind, but require the siblings receiving more valuable shares to compensate the other siblings in cash.
If siblings aren’t open to such a solution, they can always explore buyout agreements or other private arrangements. However, if a mutually agreeable solution can’t be reached, a partition action may become necessary to force the sale or division of the land.
How do I buy out a sibling on shared property?
To buy out a sibling on shared property, you will first need to check whether they are open to a buyout agreement. If, for instance, your sibling wants to retain ownership of the property, they may not be amenable to a buyout of their share.
If your sibling is willing to sell their interest in a shared property, a buyout agreement may be viable. It is a good idea to start negotiations after having the property professionally appraised. This way, you’ll know the property’s fair market value.
Some buyout agreements involve one co-owner purchasing the interest of the other co-owner(s) in full, while others allow for payments to be made over time, often with interest.
If you lack the financial means to buy out your siblings but are adamant about retaining ownership, you may consider leasing the property and paying rent to your siblings — provided they’re open to such an arrangement.
Keep in mind that to be a sole owner of property, its title should be exclusively in your name.
How is property handled when co-owned by a decedent or their trust?
When a decedent co-owned property with a third party, partition actions are often necessary to resolve ownership after their death.
For example, if a decedent shared a vacation home with a friend and left their share to their children, the children may prefer to buy out the friend rather than co-own the property. If no agreement can be reached, a partition lawsuit may be required.
Similarly, if the co-owner is a trust, the trustee can initiate or defend a partition action and negotiate buyout agreements on behalf of the trust.
How do I evict my brother from an inherited property?
While eviction is always an option if your brother is unlawfully living in an inherited property, it’s best to first discuss alternatives, such as having him pay rent or buying out your share. These solutions can save time and help preserve your relationship, since eviction proceedings can be lengthy and contentious.
If he refuses to leave or pay rent, and the decedent’s will or trust does not grant him the right to remain in the property, the executor or trustee may need to hire legal counsel to carry out a formal eviction. Be sure to familiarize yourself with California eviction rules before proceeding.
Are you inheriting a house with siblings?
If you’re facing disputes over inherited property with siblings, the experienced probate attorneys at Keystone Law can help. We’ll clarify your rights, walk you through your options, and guide you toward the best course of action for your situation.
Contact us today to learn what we can do to protect your inheritance.
