real-estate estate-planning
Estate planning? Or something else?
<p>I know that estate planning is typically for those that are planning for their future and distribution of assets in a will. However, I'm close to a situation that is after the fact, so to speak. Please bear with me for a minute and I'll explain, then ask my question. </p>

<p>My father-in-law passed away this past summer. He and his wife had several large properties, and most of the family (except my wife and I) live on one of those properties. My mother-in-law decided that the property is far too much for her to handle so she's signed over the trust deeds to three properties to her children, without specifying how the land is to be divided up. </p>

<p>There is a working ranch (I call it a hobby ranch because it's for their pleasure, not a real business) on the property where the family lives. The mother-in-law is leaving it up to the children to decided how the land will be divided up. She doesn't want to be the "bad guy". </p>

<p>My question is this. Given the circumstances described above, would the kind of thing fall under the category of "estate planning"? And if it does, will any attorney with estate planning experience be able to handle this kind of situation? Or do we need to look for specific expertise?</p>

<p>No, this falls under the heading of <strong>negotiation</strong>. You will need a lawyer and probably an accountant because if this is done badly you will owe waaay more tax than you should. However, most general lawyers will have sufficient experience with property transfer to be able to help you.</p>

<p>What will matter in this is how the properties were owned by your mother-in-law and how the transfer is structured to the children. The three children <em>can</em> just hold equal share in each of the properties but I gather that is not what you want.</p>

<p>You need to agree among yourselves who gets what property and in what proportion. This doesn't have to involve valuations and equal shares <em>unless you want it to</em>. So long as everyone is satisfied with the division, equality is irrelevant. A lawyer may help with negotiation but then, so could a good friend who is a cod fisherman.</p>

<p>What you really, really want to avoid is having the property pass to the siblings and <em>then</em> redistributing it - this will trigger property taxes twice. However, it seems that this may have already happened. </p>
