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 inherit a house and only one wants to sell?
When siblings inherit a house together and disagree about selling, the simplest option is usually a buyout. The siblings who want to keep the home can purchase the share of the sibling who wants to sell based on fair market value.
If a full buyout is not possible right away, the siblings can consider private agreements. For example, they can structure payments over time with interest, or the sibling living in the home can pay rent while the ownership issue is resolved.
If no agreement can be reached, a partition action may be an option. In California, the siblings who want to keep the property generally must be given the chance to buy the selling sibling’s share at fair market value based on an appraisal. If they cannot or do not, the court may allow a partition by sale.
What is the best way to manage inherited property with siblings?
Managing inherited property with siblings works best when everyone agrees on clear rules early. Start with an honest conversation about each sibling’s goals, whether anyone wants to keep the property, and how costs and income will be handled.
It often helps to get a professional appraisal if a buyout or sale is likely. You should also discuss who will pay for taxes, insurance, mortgage payments, repairs, and utilities.
If disagreements persist, mediation can help resolve issues without going to court. You can also speak with a partition attorney to understand your rights and options. In California, co-owners who do not want a forced sale have the right to buy out the co-owner who wants to sell at fair market value before a forced sale occurs.
What if siblings disagree about dividing inherited land?
If siblings cannot agree on how to divide inherited land, start by determining whether the property can be physically divided. This is called a partition in kind.
Even if the land is not uniform, a court may still divide it in a way that is fair. If one sibling receives a more valuable portion, the court can require that sibling to pay the others cash to equalize the shares.
If a physical division is not practical or the siblings do not agree to it, a buyout agreement may be an alternative. If no resolution is possible, a partition action may be necessary to force a division or sale.
How do I buy out a sibling on shared property?
A buyout starts with confirming your sibling is willing to sell their share. If they are, the next step is usually getting a professional appraisal so everyone has a fair starting point for price negotiations.
A buyout can be paid in a lump sum, or it can be structured over time with interest if the parties agree. If you want to keep the property but cannot afford a buyout, you may consider obtaining a loan to fund the buyout if you siblings are open to that approach.
To become the sole owner, the property title must be transferred into your name alone.
How is property handled when co-owned by a decedent or their trust?
When a decedent co-owned property with someone else, ownership issues often need to be resolved after death. For example, if the decedent owned a vacation home with a friend and left their share to their children, the children may prefer a buyout rather than ongoing co-ownership.
If the co-owners cannot reach an agreement, a partition lawsuit may be needed to force a buyout or sale.
If a trust owns a share of the property, the trustee can negotiate on behalf of the trust and may initiate or defend a partition action if necessary.
How do I evict my brother from an inherited property?
If your brother is living in inherited property without legal permission, eviction may be possible. Before taking that step, it can help to discuss alternatives like paying rent, moving out by an agreed date, or negotiating a buyout. These options can save time and reduce conflict.
If your brother refuses to leave or pay rent, and the will or trust does not give him the right to stay, the executor or trustee may need to work with an attorney to start a formal eviction. California has specific eviction rules, so it is important to follow the correct legal process.
Who pays the mortgage when a parent dies?
When a parent dies, mortgage payments are typically handled by the estate or trust during administration. It is usually wise to notify the lender, since some lenders may provide short-term flexibility on deadlines.
Depending on the loan terms, the lender may have the right to call the loan due after death. Because the rules and timelines can vary, the executor or trustee should communicate with the lender as early as possible.
Can one sibling force a sale if the others want to keep the house?
During estate or trust administration, the decision to sell is usually made by the personal representative or trustee, not the siblings.
After the property is distributed and the siblings become co-owners, California partition rules apply. Any co-owner can seek a sale or a buyout. The other siblings typically have the right to buy out the selling sibling’s share before a court orders a sale.
Do we need court permission to list an inherited house with a realtor?
It depends on your legal role and if the property has gone through probate.
If you are a beneficiary who has already inherited the home, you can list it with a realtor.
If the home is still in probate and you are the executor or administrator, you generally have authority to list the property with a real estate agent. However, you may need court approval before selling the property, depending on whether you have full authority or limited authority. The probate process and court requirements can affect when and how the property can be listed.
Who pays property taxes on an inherited house during the first year?
Property taxes are generally paid by the estate or trust during the first year while administration is ongoing. Once the property is transferred to a beneficiary or sold, responsibility typically shifts to the new owner.
Can we rent an inherited house on Airbnb before deciding what to do with it?
Yes, renting an inherited house can be possible while decisions are being made, as long as the person managing the property has the authority to do so, such as an executor, administrator, or trustee.
Be aware that short-term rentals must comply with local laws and ordinances, and some cities restrict or require permits for Airbnb-style rentals.
What happens if an inherited house is worth less than the mortgage?
If an inherited house is worth less than the mortgage, it is often described as “underwater.” The estate is usually responsible for addressing the loan during administration.
The executor or trustee may negotiate with the lender to explore options like a short sale, refinancing, or other loan workout solutions. The best approach depends on the property value, the loan terms, and the estate’s overall situation.
Are repair costs for an inherited home split between siblings before sale?
Often, yes. If an estate is selling a home and repairs are needed to prepare it for sale, the costs are commonly paid by the estate, which means that each beneficiary is effectively paying for a portion of the repairs.
Can a sibling live rent-free in an inherited house while it is being sold?
It depends on the will or trust. If the estate plan does not give the sibling the right to live there rent-free, an occupying sibling may be required to pay fair rental value to the estate or trust, especially if their occupancy prevents other beneficiaries from using the property.
If there is a dispute, the executor or trustee may need legal guidance on how to handle occupancy, rent, and reimbursement issues.
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.
