35. Jake #2
“The challenge for me as executor is that the actual instructions of the will cannot be followed because of the lack of funds in our father’s accounts when he passed away.
The house, for example, is on the cusp of foreclosure, which means it cannot be deeded to Candace, at least not for long.
I would like to suggest an option to you that maintains the spirit of the will.
I have to give credit for this idea to Luke Jones, who suggested to me that Abbie might like her grandmother’s house either as a legacy or as the result of him purchasing it for her from the estate.
After some discussion with Richard Bradshaw, I have come up with an alternative that is fair to everyone, I think.
Paula duBois, a real estate agent here in Havelock, has created an exhaustive record of our father’s real estate holdings, such as they are, and assigned each an asking price based upon her knowledge of the market.
Most are empty. Most are in Empire. All are in need of maintenance and repair, but they are assets and they do have some value. ”
I pull up a display on my computer and share it with them.
“Paula’s database includes the specifications for each property.
I gave her access so she could photograph them as well, a huge job that has been completed in the past month.
My plan has two parts. The intention is that the portfolio of properties can be sold in the hope that the resulting revenue is sufficient to allow Candace to remain in the house, thus fulfilling that stipulation of the will.
It will depend upon how quickly the properties sell.
The other part of my plan is that each of us, being the listed children with a legacy, should choose a property from the list first, and that would be our respective inheritance in lieu of the cash legacy stipulated. ”
There is a murmur about this. They’re surprised.
“Each of us would have an amount that we can call a credit toward said acquisition. That amount is the same as the cash legacy we were supposed to have. Credit instead of cash, and credit that has to be used in a specific way, but still that’s better than nothing.”
There are nods of agreement at that, some more enthusiastic than others.
“What if I don’t want to live in Empire or own anything there?” Austin demands. He’s got to be the least dependent upon any legacy of all of us, given that he’s the star of a television show, but I don’t rise to his bait. (See? Sometimes I can be nice.)
“Then you can flip it. I don’t care what you do with your inheritance once you have it. My hope is just to give you a legacy.”
“But it’ll be in Empire and we know that market isn’t exactly on fire,” Austin says.
“I can’t help that. Our father bought what he bought, and it’s all I have to work with.”
“I think it’s a good idea,” Abbie says. “I think we should give Jake credit for figuring out a solution.”
“Me, too,” Grayson contributes, again to my surprise. “Let’s hear him out before we start to pick things apart.”
Ah, yes, that’s the part I’m dreading.
“The plan is this,” I continue. “You get access to the database and essentially shop it, choosing the property you want. You can apply your credit against the purchase price. If the property you choose has a price higher than the credit from the estate, you will have to arrange for a mortgage or other financing to pay the rest. Remember that the last property tax payment is due in December in Empire, so that will be your responsibility, as well. I would like to have our choices made and the properties closed by December 1, then the rest of the portfolio can be listed for sale through Paula’s agency.
If you are planning to choose a property and flip it, sooner would be better.
Empire will become a buyer’s market after December 1. ”
“What if it’s less?” Ethan asks. “Will you pay the rest in cash?”
“No. There is no cash,” I say flatly. It’s clear he isn’t listening – he thinks I’m lying.
Neither possibility improves my mood. “There must be a couple of rules. One: there is no negotiation over the listing price. Take it or leave it. Paula has put her experience to work and the number is the number. Two: as just mentioned, there is no change back from your legacy. If you choose a property that has an asking price that is less than the credit, that’s how it goes.
I won’t be paying you the difference because I can’t.
Third, we have some admin choices to make but I’ll get to that in a second. ”
“Always fine print,” Austin complains and we all ignore him.
“Let’s do the admin,” Mike says, doing his part to help things along.
“Because this is a variation from the stipulation in the will, I would like to vote on this proposal, and I would like a unanimous agreement. Richard Bradshaw has drawn up contracts for each of you: in the event that we do agree, I would ask you all to stop by his office and sign yours at your earliest convenience. Secondly, we need to decide whether we will honour our father’s list of his children without additions.
We all know that Luke Jones is his son, too, and it might be fitting to include Luke among the heirs. I want, above all, to be fair.”
There are nods at this.
“We have to include Luke,” Abbie says but I hold up a finger.
“Let me just finish. Finally, we can decide whether or not our father’s legacy spreads to the next generation or not.
It has become customary, Richard tells me, for wills to specify whether grandchildren are to participate in their parents’ share of any legacy or to inherit in their own right.
Our father’s will did not include that language, either way, by his own choice.
Richard and I think it’s fair that we as heirs can decide whether Sierra is entitled to a legacy or not. ”
They’re not sure about that.
“And there are a couple of caveats. There is a lot of property, but given that it’s in Empire, I don’t know how long it will take to sell.
I’ve been over this a dozen times, but if roughly half of it sells in six months or so, that could be sufficient for Candace to keep her house and remain in it.
I am, however, skeptical that such a high percentage of the holdings will sell that quickly.
Maybe you should tell all your friends how great Empire is, maybe in early December.
” There are chuckles at that. “Once we’ve achieved that, we can decide what to do with the remaining holdings, whether they should be deeded to Candace, or whether we require another dispersion among the heirs. First things first.”
“We’re not going to be done with this soon,” Mike says.
“No. Maybe in a year. Maybe it will take longer. But I’d like to get started on this initiative, so that we’re making some forward movement.
I can’t anticipate how much slack the creditors will give us, so I’d like to get to a more stable position as soon as possible.
In the spirit of the will, I would like to ensure Candace’s security in the house, if we can. ”
They nod agreement at this, which is a relief.
I check my list. “The planned procedure is that all of you will get an access code to Paula’s database to begin browsing today.
You will have the option to reserve your choice when it’s your turn.
As soon as you choose, the option of choosing is unlocked for the next heir.
As mentioned, I’d like to have everything close by December 1.
If you want to look at specific properties and you’re not in town, you can book to do as much on the weekend of the celebration of life planned for our father, which will be on Saturday, November 15.
It will be held at the Anglican church in Empire at 2 in the afternoon, with a reception at the golf club to follow. ”
There is audible tapping as people add the event to their calendars.
“There’s only one last detail. Since all of this was initiated with the hope of ensuring that Abbie gets Grandma Margaret’s house, I would like to vote as to whether that property should be reserved for Abbie from the outset.”
“How are we choosing?” Austin asks. “In what order?”
“Birth order,” I say, going with the simplest choice. I don’t want Grandma’s house and I doubt Mike does either, but I wouldn’t put it past Austin to grab it just because. He’d probably then sell it to a stranger, thinking this would avenge him upon us all somehow. He really can be tedious.
“What’s the magic number?” Madison asks.
I tell them and there’s a rustle of interest. It’s not mingy.
“I would have rather had the cash,” Ethan gripes.
“You’re probably not alone,” I say. “There are a lot of properties below that price point. Of course, the larger ones, like Grandma’s house and many of the commercial properties, are priced higher, some significantly higher.
It turns out that our father’s specified sum is a number that would let each of us have a single-family home in Empire, if that was what we want. ”
“If,” Austin notes, his view clear.
“That’s fair,” Candace says, to my surprise. “Jacob is being fair and he’s working hard to make this possibility happen and you should all recognize that.”
I thank them and invite discussion. Most of the debate is about Luke and Sierra. I let everyone have their say and when we run out of comments, we vote.
I’ll spare you the play-by-play and give you the summary instead.
They are unanimously in favour of the plan, which is a huge relief.
There’s more debate about Luke, but he’s swayed that vote himself by how much he’s done recently for Empire.
In the end, they are unanimous in their vote to include him.
Sierra is not in, which doesn’t surprise me as it’s consistent with my father’s expectation.
It’s not like he didn’t know of her existence.