Where math and money intersect, quite often emotions can make simple math sound confusing.

Your basic understanding as to the numbers is correct as noted above in several places, and the lawyers will confirm that.

What should happen is not that $7500 would be 'taken out' of your inheritance and you will not net out paying 100%.

1) The initial accounting for the estate will show the car at its full blue book on the asset list,

2) you will purchase the car for that amount,

3) the final accounting of assets of the estate will show one less car but $7500 more cash than before, and

4) you will get your share of the final estate assets according to the will. Assuming it's equal splits amongst four, then you'd get back your 1/4 of your $7500 that way.

I hope it turns out well for you, I have seen too many times when this type of thing causes a riff in the family.

Maybe I’m misreading but 7500 sounds correct. You buy the car from the estate, the estate receives 7500 and when all is divided you get one quarter of that amount back, your inheritance. If you paid 75% or 5800ish now then when all is divided up the estate would have to make a separate 3 way division of the cars value. Ie, you pay the lesser amount but then when they divide up the estate you will get one quarter of that lesser 5800 amount. Ie, you get your “share” twice.

I think they are doing it right. Pay now get your “share” later.

quote:

Originally posted by Rey HRH:
I'm just here for the math, not for the family dynamics.

Rey HRH explains it well.

First of all, good for you in honoring your mom by your service to her. I know that road myself. It's not an easy one.

Second of all, I think that the estate is handling it correctly as you understand to be paid back your 1/4 portion of entire total at the end.

My thought would be you pay blue book into the trust, then when the estate is settled you would get your 25% interest back at that time.

I would check Carvana, CarMax any online car buying service to validate that number, the KBB number could be high or low compared to market rates.

If the rules of the Trust are KBB, and market research says the value is $5K based on miles, condition, market forces, then it may be better to let the Trust sell it to the market. I presume the use of KBB is the Trust's method to get the value only if any beneficiary of the trust wants it?

You need to be sure it's value is equal or more than what the trust thinks it's worth before committing your portion to buy it.

You could take the money you would have used from your inheritance to buy her car, and fix up your car or get another. If you are emotionally tied to it, and it's within market prices, then, you have to decide if you want to give up $5,625 of your money for it.

It's all about the numbers.

quote:

I would check Carvana, CarMax any online car buying service to validate that number, the KBB number could be high compared to market rates.

I agree... now you just have to decide if you think it's worth $7500.

If not, you could always make an offer to the executor for what you think it's worth. Provide evidence, as suggested by HRK. They will probably take your offer, if it's reasonable.

quote:

Originally posted by joel9507:

4) you will get your share of the final estate assets according to the will. Assuming it's equal splits amongst four, then you'd get back your 1/4 of your $7500 that way.

That's not what is showing.
It's showing that my siblings are getting each the same amount. I am getting that amount - $7500.

quote:

Originally posted by chellim1:

quote:

I would check Carvana, CarMax any online car buying service to validate that number, the KBB number could be high compared to market rates.

I agree... now you just have to decide if you think it's worth $7500.

If not, you could always make an offer to the executor for what you think it's worth. Provide evidence, as suggested by HRK. They will probably take your offer, if it's reasonable.

The value of the car is not at issue. I've already taken possession of the car, registered it and have been driving after getting my siblings to sign the proper form regarding inheritance and interest in Mom's vehicle, all w/ the understanding it would be reflected in future payment.
The Michigan Secretary of State does not let you transfer a car in this situation w/o signatures.

quote:

Originally posted by dsiets:

quote:

Originally posted by joel9507:

4) you will get your share of the final estate assets according to the will. Assuming it's equal splits amongst four, then you'd get back your 1/4 of your $7500 that way.

That's not what is showing.
It's showing that my siblings are getting each the same amount. I am getting that amount - $7500.

If your understanding is correct, then there is something wrong. If you were gifted the car for free, then yes your share later on should be $7500 less. But if you paid fair market value for it, then you made an even swap with the overall estate. You gave cash worth $7500 and they gave a car worth $7500. Your final payout should be exactly the same as everyone else's because the net value of the estate did not change due to the sale of the car. This is what you and others on this thread have shown makes sense.

This makes me think one of two different things is going on.

1) The trust and the estate (what is in the will and not in the trust) are operating separately, so the $7500 and the car are in different pots. The executor might be correct due to some complexity. The executor needs to clearly demonstrate how these details mesh so as to get to the results they claim. I think you should still end up even with your siblings, unless...

2) There is an error in the trust and/or will that shorts you the 25% interest you had in the car before you purchased it. Again, the executor needs to clearly explain how this works.

Just giving you the bottom line is not enough imo. With documents in front of you, the executor needs to walk you through it to your satisfaction.

quote:

My question: Why am I having $7,500 taken out (blue book value of car) if I have a 25% interest in the car? I'm buying the car minus my %25 share I would think.

Lets pretend the estate has $100,000 value, just for example purposes, and in that $100K there is a car valued at $7500 and $92,500 in cash.

Its established that each beneficiary is entitled to an equal share of the total $100K which includes the cars value, which is $25,000 each.

If you didn't want the car the estate would sell it and whatever is recovered would be divided up by 4 and distributed equally.

However you are taking $7500 out of the Total estate/trust, in this case a car.

They take your $25K share, deduct the the value of the car $7500, leaving you $17,500 as the remaining amount of your portion of the $100K/4

Everyone is being fairly compensated, you just chose to take part of your compensation in the form of a car.

quote:

Originally posted by dsiets:

quote:

Originally posted by joel9507:

4) you will get your share of the final estate assets according to the will. Assuming it's equal splits amongst four, then you'd get back your 1/4 of your $7500 that way.

That's not what is showing.
It's showing that my siblings are getting each the same amount. I am getting that amount - $7500.

If that's not fixed, then the issue may be the precise wording of the document you referred to in the OP, quoted here:

quote:

... her trust allowed me to purchase her car for the mean blue book value of 7500. I had to get a signature from each of my other three siblings stating they were giving up their interest in the car knowing that when my mother's house/estate was sold, I would have my purchase of the car taken out of my inheritance.

If whatever doc they signed had been poorly phrased, it may have been worded to have the subtraction done as you understand their current math indicates. Take a long hard look at that agreement.

If it turns out that doc had been mis-drafted, see about getting it re-worded and re-signed.....or if they won't, then don't buy the car and make the executor deal with selling it.

quote:

Originally posted by HRK:

However you are taking $7500 out of the Total estate/trust, in this case a car.

They take your $25K share, deduct the the value of the car $7500, leaving you $17,500 as the remaining amount of your portion of the $100K/4

Everyone is being fairly compensated, you just chose to take part of your compensation in the form of a car.

This is basically the response I received from the firm. And it makes sense.
Thank you.

quote:

Originally posted by dsiets:

quote:

Originally posted by HRK:

However you are taking $7500 out of the Total estate/trust, in this case a car.

They take your $25K share, deduct the the value of the car $7500, leaving you $17,500 as the remaining amount of your portion of the $100K/4

Everyone is being fairly compensated, you just chose to take part of your compensation in the form of a car.

This is basically the response I received from the firm. And it makes sense.
Thank you.

My mom died in June and I'm inheriting the old Chevy Impala. It's value is added to the value of the trust (cash), then the total value of the trust is divided equally among siblings. Mine is valued the same, but tangibly it's cash plus the Chevy's value which woudl be equal to other's actual cash value.