Mom's Real Estate trust for 15 kids

[tbringas12]

My elderly mother owns and occupies a house on an acre of property in New Mexico which she will leave to her 15 kids for use as a group upon her death. She draws limited income through Social Security.

Problem: The house has a certain extent of deferred maintenance and is coming into disrepair.

Question 1: What vehicle can be used to fund the current cost of maintenance and repair? What sort of an entity can be organized where the ultimate inheritors of the property (the children) pay into some sort of account now in order to (a) fund the current required maintenance, OR (2) form the basis of income so that the newly-formed enitity could borrow money against the equity of the house for the repairs?

Question 2: If the property is actually owned by two sisters as tenants in common, how can the occupying Sister #1 require Sister #2 to fund her share of the maintenance costs up front (as opposed to, say, simply deducting the cost of repairs later at an eventual buy out of Sister #2's interest)?

Question 3: Can "maintenance and repair" include remodeling/updating of a kitchen or bathroom?

Is it a line item punch list sort of thing (where maybe replacing cabinets that are falling apart would count as "repair", but a new top of the line refrigerator or jacuzzi would not qualify as "repair"?)

 

[dee_dub]

Question 1: What vehicle can be used to fund the current cost of maintenance and repair? What sort of an entity can be organized where the ultimate inheritors of the property (the children) pay into some sort of account now in order to (a) fund the current required maintenance, OR (2) form the basis of income so that the newly-formed enitity could borrow money against the equity of the house for the repairs?

You don't need an entity. A properly-drawn contract will suffice. Set out what needs to be done, everyone agrees to kick in $X, someone is given authority to spend the money on the specified repairs. You might want to add that in the event someone does not receive their expected inheritance, the remaining heirs agree to repay them their contribution.

Question 2: If the property is actually owned by two sisters as tenants in common, how can the occupying Sister #1 require Sister #2 to fund her share of the maintenance costs up front (as opposed to, say, simply deducting the cost of repairs later at an eventual buy out of Sister #2's interest)?

It is very difficult, if not impossible. One sister could threaten to obtain an order for partition and sale and kick the other out, but that's cutting off your nose to spite your face.

Question 3: Can "maintenance and repair" include remodeling/updating of a kitchen or bathroom?

Rather than using a general phrase like that, it would be most desirable to set out precisely what is to be done. If it comes to a dispute later, I would think the person arguing that "maintenance and repair" does not cover remodelling would have a very strong argument.