How can I get money from a home I own with siblings?
DEAR BRUCE: My mom passed away some years ago and left her home to my siblings and me. However, we gave her brother, our uncle, life rights to continue living there. The home is in good condition, he pays all the bills and generally we all get along well with him. The problem is, I need my share of the money out of the house to pay for some unexpected medical problems. Is there some way I can get my share of the equity? ? L.S., Exton, Pa.
DEAR L.S.: Unless you can persuade one of your siblings to buy out your interest, there?s not much you can do. If your family members are in a position to advance you money against your ownership, it would be a decent thing for them to do. Your uncle was given life rights for a very specific reason and that was to keep anyone from selling the house during his lifetime. As long as he meets his obligations, he will get to stay there.
DEAR BRUCE: This summer, I will be inheriting approximately $100,000. My current mortgage balance is $40,000. Should I use this money to pay off my mortgage or invest the entire amount? ? Reader in Idaho
DEAR READER: Your letter lacks a few major facts, such as your age and other financial details. But assuming you are under 60 and have reasonable investment acumen, I would be inclined to keep the mortgage. What?s the interest rate on your mortgage? If your rate is substantially more than 8 percent, it may be a good idea to see if you can refinance a lower rate. And what?s your income? That would have a bearing on your tax liability. On balance, until one starts to approach that ?seasoned citizen? range, you can do better by investing the money and retaining the mortgage.
DEAR BRUCE: We are considering retirement but question if we are secure enough financially. We have $13,000 invested in a CD. We also have $10,000 in savings and $35,000 in an IRA. We need suggestions. We have some income property and are considering selling it, but we?re not sure. Maybe we should hang onto it for now. What are your thoughts? ? Reader, via e-mail
DEAR READER: You didn?t indicate what your Social Security benefits will be once you retire, or if you had any other pensions, so it?s a little difficult to tell you which way to jump. One thing is clear, though: You are very conservative in your investing. That may be a virtue to some, but the problem is, you are barely receiving a rate of return over the inflation rate. I would urge you to consider some other forms of investment. I suggest you have a professional analyze whether you are truly earning enough from your income property. If it were converted to cash and appropriately invested, the net result would be more cash in your pocket with less effort.
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