Can they take his inheritance?

Nine years ago my husband's grandpa bought a house for us to live in. We lived there until he died last summer, then had to move out for the house to be sold. The will said to sell everything and divide it among his seven adult grandchildren. The house sold for $25,000 less than what was paid for it.

We recieved a letter from the attorney today saying that my husband's share would have been $15,000. But since the house lost $25,000 in equity while we were living there he'll have to make up the difference. Meaning that not only will he not get any money, but he owes the estate $10,000. Otherwise, it's not fair to the other heirs.

Can they do this? Can they take his inheritance just because the real estate market is in a slump?
Additional Details
We didn't sign anything at all, nor did we pay rent. He actually bought it for us to have for good, not just to live in. He kept it in his name because, quite frankly, we're poor and he knew we wouldn't be able to pay the property taxes at the time. Everyone knows he meant for it to be ours someday but never got around to changing his will. The only will he had when he died was written a few years before he bought the house. There was never any mortgage (he paid cash for it) and there are no liens or anything. He owned it outright.

Amanda

First of all, I am really sorry you lost the house you were meant to stay in. It's difficult enough when a loved one dies and then when inheritance issues and wills weren't properly cared for, it becomes a mess. It's frustrating to be in the situation you are in but how awesome you were able to live in the house for 9 years and will likely now have part of the inheritance.

You absolutely need to find an attorney to assist with this. The attorney who contacted you is not looking out for your interests and you need to find someone who can speak to this attorney on your behalf and in the legal jargon. It's not clear who the attorney is who contacted you, the estate attorney? An attorney hired by one of the other children? If you didn't have a written contract or a change to the will that shows that you are responsible for any difference in equity, it won't be the case that you should make up this difference, any more than you couldn't stay in your home because the proper paperwork wasn't completed. It makes no difference that you lived in the house rent-free, any more than a renter in the house would need to pay for the difference in the cost. It seems you would need an estates attorney, not a real estate attorney as this is more of an issue with the disposition of the estate and not the nature of the property itself.

I am not an attorney so please do not consider this anything other advice so you can protect your interests. It will cost something to have an attorney work on this for you, but if the alternative is to lose your husband's portion of the price of the house (which should be split equally from what you state in your question) and have to pay $10,000, you need to spend the money now. There could be other factors involved in this that you don't know or haven't specified in your question and that is where an attorney could review everything and let you know how the law in your state applies. Estate law is specific to each state. Be sure that your husband does not sign anything from the estate attorney until you have spoken to your own attorney and if this matter has already gone to the probate court with its final accounting, you only have a certain amount of time to file an objection with the court. Read everything very carefully that has been sent and will be sent from the attorney or the court.

I hope that you are able to find an attorney who can help you. You can usually email the Bar Association in your state for referrals or look online for any reviews.

airjarrod

If the house lost $25,000 in equity, that would be broken up into 7 equal pieces.

Absolutely not. Your tenancy had nothing to do with loss in equity.
Get an attorney.

kbk823

Did you sign an agreement with the grandfather when you moved in regarding the terms of your tenancy? Is there a stipulation in the will that says "in the case of negative equity blah blah blah"? You've lived there for nine years, I don't know if you paid rent or the mortgage or what, but it's probably in your best interest to get a lawyer to figure it out.

sweet24

Hi, I am having a few insues with my family, my grandmother past away 3 years ago, and there is a pending law suit waiting to be settle and I am one of the beneficiaries of her Estate. My question's are. 1) If I lived in a shelter before would they take my inheritance way? 2) If I have Medicare would they take my inheritance away. Please help me. I am extremly worry.

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