Inheriting a Property with Siblings

Joint tenants mean that the shares of the property are distributed equally among the beneficiaries, in this case, the siblings. If a sibling dies, their share is then distributed equally among the rest of the siblings.

If there is a disagreement among siblings on whether to sell the property, they can decide to proceed as tenants in common. This means they own a percentage of the property. Beneficiaries can sell their individual share or choose to assign their share to someone else. However, this can be a tricky process as the buyer pool will likely be smaller.

The best solution is when property inheritance has been laid out in the will or trust. Most wills name an executor, who is responsible for ensuring the terms in the document are carried out. In these instances, they will need to apply for a grant of probate. Once probate is granted, you can move on to the next stages, such as selling the property.

If there is no will or trust in place, the intestacy rules apply. This means that if the deceased does not have a surviving spouse, the estate will be passed onto their children. The siblings will receive an equal share of the property.

If a sibling dies before their parent, their share is distributed among their own children. Once the Rules of Intestacy have been established, the siblings can then apply for a grant of letters of administration.

Any outstanding mortgages are passed onto the new owners of the property. In most cases, siblings tend to sell the property, pay off the mortgage and distribute the remaining cash among themselves.

The executor can sell a property provided there are no joint owners or terms in the will that prohibit the executor from doing so. However, it is the executor’s responsibility to act in the beneficiaries' best interests. This means they may face legal action if they decide to sell the property without the siblings’ permission.

Ideally, all siblings will want to sell the property. In this instance, the cash will then be distributed according to the terms in the will. Most cases will see the shares split equally among siblings to minimise the chance of major disputes.

You can opt to buy out your other siblings before selling the property. If the deceased parent took out a life insurance policy, any remaining mortgage fees should be covered. If there is no remaining mortgage, the life insurance company will likely pay out a lump sum.

If no policy has been put in place, you will be responsible for any outstanding mortgage payments. Once you have bought your siblings’ shares, you can then apply to become sole owner on the property deed.

The siblings who want to sell can opt to put their share of the property on the market. This can make selling the property difficult as most buyers want to avoid purchasing a share of the property.

If there is adamant disagreement among siblings, those wanting to sell can seek a court order. This is known as a partition action which is a lawsuit concerning jointly owned properties. The party looking to sell the property will request an order to sell from the court.

If granted, this means the property will be sold. It’s important to note that this process incurs high costs and can be extremely lengthy.