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Family home now LLC owned. Please help

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chrish3985

Junior Member
What is the name of your state (only U.S. law)? Georgia
I am dealing with a probate court situation I need some help or advice on. When my mom’s health began to fail, I saw Medicaid was a real probability. To protect the biggest asset, the family home, it was separated from the estate and put into a L.L.C. An L.L.C was chosen rather than a cooperation due to my sister owing money to many people, including Uncle Sam as she defaulted on a farmer’s home administration loan. This L.L.C is a majority rules situation. So far, I’ve been able to persuade my brother to vote with me, so together we have control. Before my mom died there was a time when both my brother and sister tried to stay in the family home. Mom was in the hospital or nursing home at this time. Sister called the local police and told them that brother has threatened her. Brother says this was a lie, but I was many miles away. Brother was hauled off to jail. Sister had the house to herself. (That was clearly the goal of this act). As a result brother cannot go anywhere around sister now, by threat of jail time. Sister was evicted by a majority vote from the home, and brother was allowed to stay there for one year if he paid all the expenses. Now the year has passed. I need to clear out all of mother’s possession, clean up, and put the home up for sale. What I hear from sister is frightening to me. She is threatening, vindictive, obstinate, illogical, and dishonest. I know she wants some of the household possession, but I am afraid to meet her there for her to get them. She could call the police on me, even if I am doing nothing wrong. Sister has a long history of this type of behavior. Another big concern is that if allowed into the family home, she will simply sit down, and refuse to leave. She tells everyone she is a 1/3 owner, but is refused entry.
I am open for suggestions. The possible risks far, far out way any benefit to me, but as executor I am supposed to divide everything in 1/3 far portions, but I am quite afraid of her. She is crazy! The LLC agreement gives us the ability to vote out a member with a majority vote. This would change the dynamics in such a way I am afraid we would come to loggerheads. I am at my wits end. My attorney is of little help. He says I could evict my sister if she “squats”, but that is a 2 month process in Georgia. I fear she will trash the place if given the opportunity. This situation is complicated by the fact that I live in the next state, while brother and sister are local. Mom's will was created before the L.L.C., so I believe it has precedence. Can you explain how this is different from an estate item with regards to division, and what would be the consequence of not following that division exactly? I am hopeful you guys can give me some good advice on this. Thank you.
 


adjusterjack

Senior Member
My attorney is of little help.

Then fire the attorney and get one that knows what to do.

Your family created quite a mess by trying to cheat medicaid.

Seems to me that if the LLC is the owner on the deed and you and your brother vote to sell the house, then just sell it and split the proceeds three ways.
 

Zigner

Senior Member, Non-Attorney
Mom's will was created before the L.L.C., so I believe it has precedence. Can you explain how this is different from an estate item with regards to division, and what would be the consequence of not following that division exactly? I am hopeful you guys can give me some good advice on this. Thank you.

You believe wrong. If the house is no longer owned by your mom and is actually owned by the LLC, then it's not part of your mom's estate at all. The will has absolutely no bearing on it.

With that said, was your mom a member of the LLC?
 

LdiJ

Senior Member
You believe wrong. If the house is no longer owned by your mom and is actually owned by the LLC, then it's not part of your mom's estate at all. The will has absolutely no bearing on it.

With that said, was your mom a member of the LLC?

And if not, does mom recognize that she no longer owns her home? (I think mom is still living?)
 

ALawyer

Senior Member
Family Disputes Are Usually No Win Situations

The legal system is not the best way to resolve family disputes, but unfortunately it sometimes has to be used as the last resort.

The situation you are asking about is, unfortunately, all too common, as old sibling rivalries and long held grudges interfere with what should be a quick and fair resolution of one issue -- selling the family home at a fair price and dividing up the proceeds.

Fighting things out in court which will cost everyone money in terms of ever increasing lawyer fees, while the items such as property taxes and property insurance must be paid and the costs of upkeep continue. All the while you all face the risk that something may happen to cause the property to decline in value (perhaps weather, rodents, or even an increase in interest rates -- making it harder for likely buyers to get or afford a mortgage). And as you don't have access to the value of the property, and are losing the opportunity to earn interest or otherwise invest your shares of the proceeds you would get from a sale.

You might want to see if it possible to bring in a mediator. The mediator could be an experienced lawyer, ideally a retired judge, or a non-lawyer you all trust such as a clergy member -- to try to resolve things.

If that fails, the courts are your last resort.
 
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chrish3985

Junior Member
You believe wrong. If the house is no longer owned by your mom and is actually owned by the LLC, then it's not part of your mom's estate at all. The will has absolutely no bearing on it.

With that said, was your mom a member of the LLC?

No. Mom was not an L.L.C. partner. She has been deceased for a little over a year. I do not wish to cheat my sister, but if i had complete control over the LLC perhaps she would behave, and stop the foolishness.
 

chrish3985

Junior Member
You believe wrong. If the house is no longer owned by your mom and is actually owned by the LLC, then it's not part of your mom's estate at all. The will has absolutely no bearing on it.

With that said, was your mom a member of the LLC?

So if my siblings were unhappy about the division of the LLC assets, would it even go to Probate court? Wouldn't that be a breach of contract? I am in another state. What would that process look like?
 

Zigner

Senior Member, Non-Attorney
So if my siblings were unhappy about the division of the LLC assets, would it even go to Probate court? Wouldn't that be a breach of contract? I am in another state. What would that process look like?

No, it would NOT go to probate court. Your mom didn't own the house.

I'm curious - WHEN did you transfer the house to the LLC?

Was your mother competent at the time?
 

chrish3985

Junior Member
No, it would NOT go to probate court. Your mom didn't own the house.

I'm curious - WHEN did you transfer the house to the LLC?

Was your mother competent at the time?

February 2015. One year and a month before she passed. Mom owned the house before this. I used my power of attorney to transfer it. Brother qualified as a caregiver. It was transferred to him, then the LLC. Mom's competency at the time was questionable. There were good days and bad. I hope this helps.
 

Zigner

Senior Member, Non-Attorney
February 2015. One year and a month before she passed. Mom owned the house before this. I used my power of attorney to transfer it. Brother qualified as a caregiver. It was transferred to him, then the LLC. Mom's competency at the time was questionable. There were good days and bad. I hope this helps.

Yes, it helps make it clear that the transfer was fraudulent.
 

Dandy Don

Senior Member
Was it an attorney or someone else who advised you all to separate the home from the estate?

You should consider having a Georgia business law attorney look at your situation to determine whether or not Georgia law legally allowed you to use the POA to transfer ownership of assets and any other concerns you have about the LLC.

What does the will say about the distribution of household possessions? That is what you should be following.
 

LdiJ

Senior Member
Why was it fraudulent?

It was fraudulent because a POA cannot use the POA to do something that benefits himself/herself. You benefitted yourself using your mother's POA. What's more, you fraudulently hid the home from the government who I assume provided some of your mother's care, and you may have hid the home from her creditors as well.

Now, you are trying to find a way to take away your sister's membership in the LLC, which of course you cannot do without compensating her. All in all you have made a big mess here. Do not make it worse.
 

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