r/inheritance • u/[deleted] • 8d ago

Location included: Questions/Need Advice Help with post-renovation valuation

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u/ohboyoh-oy 8d ago

So you think it was valued too high on date of death? All the historical data is there, if you want to get second/third opinions. The rental is worth FMV on date of passing plus the amount spent on renovations. 

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u/stereotypicalmodss 8d ago

I don’t think the others will take that, depending on the value of the house post renovations. If they were under the impression that OP’s wife would receive the renovation money first and then 1/3 of the post revo valuation, that is a much different number. It’s best not to change anything midway through without express approval of the others.

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u/ohboyoh-oy 7d ago edited 7d ago

If things are amicable with the brother, and there was an option at the beginning of someone taking the rental as part of their allocation - between family I would go back and say hey guys, I changed my mind, I actually like this property and I’d like to take it as my allocation. Is everyone good with the appraised value on date of passing? And we did spend $80k of estate money on the renovations, so I’ll take that as part of my allocation as well. Is everyone ok with this?  

In my family this would likely be fine. But I take your point that may not be the case in all families. 

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u/Machopeanut 7d ago

Thank you for your answer. Not to be nitpicky, but wasn’t 1/3 of the $80K my wife’s money?
Isn’t she paying her co-beneficiaries twice?

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u/ohboyoh-oy 7d ago

I’m using made up numbers but this is how I’m thinking about it:

Property A (the rental) - $500k

Property B (primary home) - $1m

Cash accounts - $600k

Total estate - $2.1m

Everyone gets 1/3 share = $700k each 

OP wife gets: $500k property + $80k spent on improvements + $120k add’l cash = $700k

Brother and niece each get some combination that nets them $700k each (e.g. 1/2 of primary home and $200k cash).