Q: I am the administratrix of my late brother's estate. My nephew, heir to the estate does not want the property. He ...
turned 18 in March. Is there any way I can have my nephew sign a paper to say that, in effect and amongst other things, he will sign off on the property and not go back on his word (when I am ready to go to a title company)? It will cost close to $4000 to transfer title (which includes PA's 4 1/2 percent transfer tax). It may take me about six months to get up that money. I feel he's getting manipulated by his mother, who wants to keep the house for herself (and said she owned it less than two hours after my brother's death!) I am currently paying the taxes on the house (made an agreement with the tax review board) and I'm putting money into it.... I know that's "bass ackwards" but it worked out like that. Please tell me what can and should be done. I want to do the right thing, but I don't want to be told six months from now that he changed his mind AND I could have legally held him to his word. Thanks!!!
A:
Your nephew could renounce the gift of the property, and it would then pass by intestacy, since your brother did not have a Will. If that would occur, the property would pass to the intestate heirs. I assume that the nephew's mother was not your brother's wife. If she was a wife, even if they were separated, she would be an heir. If your brother had other children, they would be heirs. If you have other siblings, they would be heirs. If you are the only heir, and your nephew renounces, your inheritance tax would be 12%, not 4.5%, as your nephew would be charged. Consequently, you don't want to go this route. You would want your nephew to inherit, and he would then, presumably, convey the property to you. There will be another 2% tax, a transfer tax, on that conveyance. Thus, your total tax will be 6.5%, not 4.5%.
Before the property is conveyed to him, any money you are paying for taxes, etc. is really a loan to the estate. You, as Administratrix, could refuse to transfer the property to your nephew if he does not repay you or does not simultaneously transfer the property to you. That would be your best leverage. It would be difficult to have a legally binding contract now that would force him to commit to giving you the property because, as I have said, the money you are advancing is a loan to the estate, not to him. Therefore, any promise he would make to you would not be supported by legal value, which is required for a binding contract. If your nephew is going to take title to the property without simultaneously conveying it to you, you would have to get a Note and record a Mortgage against the property for all the money you are or will be advancing. That would secure your monetary advances, but it would not require him to give you the property if he changed his mind. You could then recover only the money you have advanced to the estate, and later to him.
Also, as Administratrix, you are a fiduciary, which means that you have special responsibilities.
In short, you need a lawyer to advise you and to help you with the estate and all the documents.
I am also not sure why you are getting involved with a title company. You need a lawyer to handle this transaction.
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