Inheritance Situation with Sibling: Need Advice
Our mother died last year in Nevada, leaving my sister and I her almost ($40k short) paid off home in a desirable area. There were no other finances to work with except a $15k insurance policy. I live several states away and have two little ones, including a toddler. She is older and has managed everything for the last several months of our mother's life when she was sick, from moving her into the nursing facility and then making hospice and end of life arrangements. We have a great relationship and friendship. I flew in to visit as I could and came in for ten days with baby in tow to help clean out as much as possible when she died and again to hold an estate sale that I coordinated. There was still a lot of stuff left in their 47 years of living in the house.
Here's what I need help with. She is going to buy me out of the house and keep it. Several months ago, we agreed on a sale price of $450k for her to purchase her half (so $225k plus her half of the remaining mortgage) The area comps are closer to $550k, but I knew the home needed some updating AND of course I'd rather sell it to her than Joe Schmo. She managed the life insurance account and has been paying all the bills for the house through it while she gets it cleaned out and fixed up. She has been making great strides, but now the money has dried up as the monthly costs to take care of the house are nearly $1000/month. However, she feels slighted for all the work she has put in and claims to have saved us money by doing much of the upkeep herself.
She is now asking for us to pitch in for a few months and cover the house costs while she finalizes updates and prepares her own house to sell, which should sell at a hefty appreciation, but no idea how long it might take to sell. She is doing far more to our mother's home than we would have if we were to sell it on the market, but I don't want to be insensitive nor do I want this to affect our relationship. I know she has worked hard, often by herself, and dealt with all the things I am not there to do. So how should this proceed? Please be kind as we're trying to be good to each other, but it is complicated!