Hey, I was working with a family recently, the parents had both recently passed away and the four children were getting together and they retained us to handle all the succession, or probate, matters. They had a question about a particular piece of property that their parents had owned.
During the parent’s lifetime, the parents had donated a 10% share in that property to one of the children. Now that the parents have died, and all the parent’s assets are going to the children equally, the children were asking me who ends up with this piece of property? Well, as you might imagine, the child who owned the 10% will continue to own the 10% and then the parents 90% would wind up being transferred equally to the four children. If you do the math, the child with the 10% would continue with the 10% and each of four children would inherit 22.5%, which is one-fourth of the parents 90%. The child that already had 10% winds up with 32.5% of the property and the other three children each own 22.5%.
You might figure how does that work because it is a house. How can you own a 22.5% interest in a house? Well, people can have an undivided interest, which means that each child, at least those three, own a 22.5% undivided interest in the whole house. There is not particular tracks or rooms for each child. Each child has an undivided interest in the whole home. I
If you have a situation like that and you want to get it all straight, feel free to reach out to us and we can have a conversation together.