Expert: Sue Bernstein - 3/31/2006

Question
My mother recently passed away, leaving her 'mortgage free' property to my sister and I through her Living Trust.  We have had a cash offer of $1,050,000 for this property, which is actually $350,000 below the market.  Is there any reason we should not offer to carry back a first trust deed on the $350,000?  My sister is worried that 1) she won't get her money out of the deal, and 2) that she will lose most of her share to taxes (she is in the 37% tax bracket).

Secondly, if I were to want to carry back this paper on my own, what would be my obligation to my sister regarding her portion of the $350,000.

Thank you for your response.  

Answer
Dear Susie,

You certainly can offer to carry the $350,000 or any amount agreed to between buyer and seller but I can't advise you on whether that is the best route to go.  Anything having to do with taxes should be referred to your accountant or to an accountant on this site.
What I don't understand is that you say you were offered $1,050,000 and that offer is below market.  Is the purchaser even willing to pay you an additional $350,000?
As for your relationship/obligations to your sister that would be however you both decide to break down the profit. You would both need to get advice from your accountant(s).

Sorry I couldn't help you more but I hope I offered some advice.

Sue Bernstein
www.SueBernstein.com