How to split up the willed family home
By Jay MacDonald • Bankrate.com

The most popular final directive in many a last will and testament reads: My estate shall be divided equally among my children.

But what happens when most, if not all, of an estate's assets are real property, most commonly the family home? How do you divide that three ways?

In a best-case scenario, the siblings would agree unanimously on a fair and equitable settlement: Sell the home and split the proceeds, distribute other assets so one heir retains the property or negotiate buyouts for those wanting cash.

But best-case scenarios can be as elusive as family harmony when the second parent dies, according to Katherine Tennyson, chief probate judge for Multnomah County in Portland, Ore.

"If there is more than one sibling, you usually have very different ideas about what should happen to the family home," she says. "What is stunning to me is that the resentment that has been building over time in a sibling group really comes out after Mom and Dad aren't around anymore. Then people are looking for payback."

Willed family homes Even if there's no acrimony among family members, an executor can make plenty of missteps, legal and otherwise. Here's what you need to know.

1. The executor job is not easy 2. Wait for court order before acting 3. The main job: maintain and organize 4. Beware of homestead exemption 5. Seek an equitable, fair solution 6. Shortcuts, good and bad

Executor job not easy
Determining the fate of the family home when both parents have passed can be the most knotty and explosive issue an executor -- also called a personal representative -- will face in executing the terms of a will.

In addition to refereeing what discord exists among siblings and other heirs, you'll almost certainly have to go through regular probate to transfer the deed unless the change of ownership is provided for outside the will via a living trust or similar instrument. A simplified or summary probate that's faster and cheaper is only allowed for "small estates" in most states.

"The dollar limit (for summary probate) varies a lot by state, from just a few thousand dollars up to about $200,000," says attorney Mary Randolph, author of "The Executor's Guide." "If you're going to liquidate a house, you're probably over because it is based on the value of the entire estate."

Retaining counsel is advised, and frequently required, when entering probate, especially if real property is involved or you are unfamiliar with the probate process.

"When you are put as the head of the estate, you have some serious responsibilities and liabilities," says Jonathan Alper, an estate attorney in Heathrow, Fla. In the case of a house, you must maintain the house, keep it insured, make repairs. If you let the insurance lapse and something happens, the executor can be personally liable for negligence."

Because we may only be an executor once in our lives, few of us get any good at it.