5 inherit Fl. condo; one has interest in property...?

Question

My Mother recently passed leaving a condo located in Fl. to her 5 children, yet one has interest in moving in(we all live out of state of Fl.).

Approx. $3000 left on mortgage before it's paid off.

How can this situation work?

Thanks in advance!

Answer 1

The person who wants the property needs to pay the rest of you FMV for your shares of the condo.

Anything less is a gift from you to him.  And if your gift is $12,000 or more, there are gift tax consequences.

Answer 2

Only one solution. Sell it to pay off the mortgage and split the earnings.

Answer 3

It usually hard to get five people to agree on anything , therefore the best route maybe for the one who wants to live in the unit to buy out the other four, since it seems there is equity in the place  

Answer 4

The only fair way to do this is to have the one sibling purchase the condo from the estate at 80 percent of fair market value (the 20 percent is already his/hers through inheritance.)  The remaining four of you would then each get 20 percent of the purchase price from the estate.  Of course, the remaining mortgage balance would be paid from the estate's assets.