The Cost of Verbally Promising Your House

It's very common for families to want to pass down their real estate from generation to generation.  There's a feeling of pride in home ownership and a strong desire to carry on a legacy by providing shelter to the next generation.  We include specific gifts of real estate in Wills often, but what happens if the gift of real estate is just a family promise or understanding? In Pennsylvania, these verbal promises aren't enforceable and create a "domino-effect" of issues for the administrator of the estate and other beneficiaries.  These verbal promises become legal messes.   

Here's a sample scenario: 

• Mom promises the house to her adult child, A, after she passes away. 

• Mom executes a Will leaving everything equally to her three children, A, B and C, and nominating child B as executor. 

• Mom passes away and child B is appointed as executor.

• Child A refuses to leave because he was promised the house.

• The estate assets aren't significant enough for child A to take the house as his share of the estate.

• Child A either can or cannot afford to "buy-out" his siblings' interest in the house through other funds (i.e. securing a mortgage).  If he can, we can work around the circumstances.  However, in many cases, child A cannot afford to do so. 

• While child A is refusing to leave the house, the real estate and utility bills continue to come in, estate funds begin to be depleted, and legal and tax deadlines may be missed due to the delay and lack of funds from the sale of the house. 

• Frustration builds between the siblings and child A may destroy the house out of anger causing even more difficulties and unnecessary expenses for the estate. 

  
  

What is the executor supposed to do? Evict him! 

This is a terrible position for their mother to have put them in, especially the executor.  This process is lengthy, costly, and emotional for everyone involved.   As part of this "domino-effect", if the estate can't afford to carry the expenses of the house through the lengthy eviction process and until the house is sold, the executor is often expected to advance the funds (if he can afford to).  In some cases, the executor becomes so overwhelmed and exhausted by the process, or so paralyzed by the idea of having to evict his own sibling, that he stops carrying out his duties.  

The bottom line - this scenario is completely avoidable. Put it in writing!

To schedule an initial appointment, visit bartonestatelaw.com/appointment.