91

Shared property is tricky when agreements aren't made up front, but the right answer in a situation like this is basically whatever you agree to. That said, you own 5% of the property, not 5% of what it used to be worth. I would encourage you not to dismiss the value of that equity over all these years. If you had gotten 5% of the value 25 years ago you ...


62

Lots of people will post lots of advice about what to invest in, or which research blog to read, but definitely the best advice is: Talk to a financial planner As newbie investors there are lots of basic mistakes you can make that will cost you dear. A good financial planner will avoid them, even if they don't get you the absolute best theoretical return. ...


54

I cannot afford a lawyer unless I recover some of the money. That is why many lawyers work on contingency. If you bring them the makings of a strong case, they might represent you in exchange for a share of the payment, only if you win. So doing an initial consultation with a lawyer and showing whatever documentation you have, what you remember, what you ...


41

Technically it is worth what you are willing to sell it for and what he is willing to buy it for. Failing that, it is worth the current market value. If you were going to buy a home, and the you said to the sellers "Hey this property was valued at 25% less five years ago, I would like to pay that price". What would they tell you? They would tell you to ...


16

Let’s make a slight change: instead of your brother buying your share, I’ll buy the whole house at market price, give 95% to your brother, and 5% to you. In each case you should get exactly the same money. If your brother insist you should get paid 5% of $20,000 then you offer to pay him 95% of $20,000 obviously.


14

In my opinion that there is no better resource than bogleheads.org. This site is founded on the opinions of John Bogle, who is credited with founding the first index fund. There are tutorials, articles, and very helpful folks that help get you started. If you ask a question, they will ask for more information like your current income and assets, your ...


13

Technically, yes. But it may not be a good idea. You will need to declare it, because it's over $10000. And you will have to explain to the officer why you are carrying $1M. If they don't believe your explanation, they will take the money from you.


10

Surely the simple answer is 'market value'. But this isn't an open market. It's a very small market, probably consisting of just you and your brother. No-one except him is interested in buying your 5%. So the price is what he'll pay and you'll accept. Period. 'Fairness' doesn't come into it. If your 5% interest is blocking his ambitions for the property ...


8

You can usually tell when banks suspect money laundering, because they go very quiet, and refuse to discuss things. Banks will no more contact you to say they suspect money laundering, than the phone company will to say your phone is being tapped. It would be illegal for them to do so. The first thing is: who is the executor for your fiancee's father's ...


8

Understand how investing works for yourself You need a freshman's understanding of investing and how the industry works. Fortunately this isn't hard at all: John Bogle's book "Common Sense on Mutual Funds" is a great place to start. You need that so you have enough intuition to recognize poppycock when you see it. We're not asking you to get an MBA. I ...


8

If you were to instead sell the house would your brother expect 95% of $20,000 or 95% of $300,000? You currently own 5% of a house worth $300,000 and any payout you get for that ownership should be based on the actual value.


7

Note that 5% of what it was worth 25 years ago in today's dollars may be more than 5% of its current worth. $1,000 in 1995 is worth about $1,729 today. Say the house was worth $100,000 in 1995 and it's worth $1,000,000 today. If it was worth $0 today, say it burned down or was discovered to have toxic waste that would cost more than the value of the ...


6

I think you have things slightly backwards in your head. The £3000 gift exemption is not yours, it is theirs. TL;DR: In no circumstances would you have to pay out money as tax on the gift after the fact, even if the person dies within 7 years. The worst that might happen is that any subsequent inheritance you received would be lower to account for the tax. ...


6

This sounds like a scam. How well do you know this fiancée? There are no such processes as you describe, so chances are that the fiancée is a scammer and is making this up to milk you for money.


5

Since it's a sole proprietorship, all of the business's assets and liabilities will now be owned by the estate. The estate (in the person of the executor or executrix) then handles winding everything down. While still of sound mind and body, the spouse who owns it all should get with an estate attorney and plan all this out (including who will be the ...


5

First question is who is the executor of the estate? Typically it falls upon that person to do things like file the final tax return. If it is your girlfriend, then she should do so. What I would do is contact a person in the state where her father lived to do the tax returns. Most of the work can be done online. A couple of products to look at are ...


5

Yes your inherited share disqualifies you from using the LISA for a first home, without being affected by the penalty. As I see it your options are to keep the money in the LISA to use for retirement, take the money out of the LISA and take the hit on the penalty, or if its not too late, hold off on accepting the inheritance or don't claim it at all. The ...


5

Your father's intent was to sell the property. He put it up for sale and a deal fell through. Your brother chose to buy the property and it appreciated in value. Unless you can prove that your father was not of sound mind and your brother took advantage of him, there's nothing you can do. Your brother had the foresight to make the purchase and take on the ...


3

There is no US tax of any kind on inheritances, whether received from the estate of a US tax resident or someone resident outside the US. There may be death duties etc to be paid in the UK but in the US, these are paid by the estate before the beneficiaries get their bequests from the estate. If this is different in the UK, then there may be taxes to be paid ...


3

IRA Designation of Beneficiary: Most are written assuming that the beneficiaries of the IRA will outlive the owner. Will they? Will they all? Are there contingent beneficiaries designated? Are they guaranteed to outlive the owner of the IRA? If not, and if there is no will, the proceeds may be distributed according to your state's rules regarding intestancy. ...


3

One possibility is the IRA contains non-deductible contributions. If non-deductible contributions were made (meaning, no deduction was taken on the contributor's taxes the year the contribution was made for those contributions), then those portions were taxed prior to being contributed, and so they are not taxed - only the income beyond those contributions ...


3

Invest the entire amount into an index fund as soon as possible. You're not going to be able to time the market. You're not going to beat the market. You'll be amazingly lucky if you can even get close to average returns since you have to account for fees, even on index funds. Source: https://www.moneycrashers.com/reasons-shouldnt-time-market/ Your current ...


3

The answer to your question is 5 % of the current market value. All the other issues mentioned are emotional baggage. That doesn't mean you can't consider them. Maybe since you aren't too personally invested in the property and your brother spent a lot of time effort and money, you are emotionally satisfied with accepting 4 % or 3 %, or perhaps you feel ...


3

I once saw a similar question and tried to find it but can't; the short answer given there was that unless you enjoy being a landlord, stocks would be the better way to go. A few years back I went the real estate route and after all the expenses, the headache of finding renters when the apartment was vacated, repairs etc, an index find would probably have ...


3

I don't know about other jurisdictions or Germany, but in the UK the solution to this problem would typically be to set up a "discretionary trust", sometimes called a "bloodline trust" for this sort of application. Some more details can be found here https://unite-wills.co.uk/guides/bloodline-wills-and-trusts or https://www.aprilking.co....


2

Real estate is a legitimate business but you should go into it with deliberate intention. There will be taxes to manage, proper insurance put in place, renters to deal with, and the property to manage. You may want to outsource some of those but they will cut into your profitability. And that is if you pay for the property with cash. Once you add leverage ...


2

No, your assumptions are wrong in multiple ways. First, Mr & Mrs A are unlikely to die simultaneously, so there will be two separate inheritance events. Second, the Inheritance Tax threshold is £325,000, not £320,000. Third, the allowance is per estate, not per recipient. However, the longer-surviving spouse gets any unused allowance from the first ...


1

Note: My main goal isn't to pay off the loans 100% before saving for a house, it's to get your loan amounts lower with the same payment amount so that you are paying less in interest in the long run. At no point would I refinance any of the loans. I also know that my math takes into account a future value of the car loan but a present value of student loans. ...


1

The math on questions like this is pretty easy, really. Excess funds goes toward the loans earning the highest interest rates, first. Where the difficulty comes from is psychologically, in my opinion. That is, say you use the windfall to knock off all those 6.55% loans. You need to use the money that was going monthly to pay those to then follow the same ...


1

After someone dies, the property may receive a step up in basis. If this is the case, the capital gains tax would be based on the difference between the value at the time of death and the sale price. This is not tax advice and the rules could change between now and then, so be sure to talk to a tax professional. https://www.investopedia.com/terms/s/...


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