How to Settle Inherited Property Disputes Among Siblings

When a loved one passes away, it’s not uncommon for emotions to run high, especially

when it comes to dividing property. One of the most common sources of conflict during

probate involves real estate that multiple siblings inherit together. Whether it’s a family

home, a cabin up north, or a rental property in Lansing, disagreements about what to do

with inherited property can quickly turn personal and complicated.

In Michigan, these disputes have clear legal pathways for resolution, but understanding

your rights and options is key to keeping family tensions and costs under control.

Understanding Shared Ownership After Inheritance

When siblings inherit real estate, they usually become “tenants in common.” This means

each person owns an undivided interest in the entire property, even if one sibling lives

there and another lives out of state. Everyone has equal rights to use and possess the

property, regardless of how much time or money they’ve personally invested.

This setup can be fine when everyone agrees on how to manage or sell the property.

However, if one sibling refuses to sell, wants to live there rent free, or disagrees on

major decisions like renting or repairs, it can become a major legal headache.

Common Causes of Inherited Property Disputes

Different Financial Priorities

One sibling may want to sell the home for cash, while another may see it as a

sentimental keepsake.

Unequal Contributions

If one person has been paying taxes, mortgage, or maintenance, they may feel entitled

to a larger share.

Occupancy Issues

Sometimes one heir moves into the property “temporarily” and then refuses to leave or

share rental income.

Unclear Wills or Title Issues

A poorly drafted will or unclear deed can cause confusion about ownership or

inheritance rights.

Emotional Attachments

Family homes often carry memories that make rational decision making difficult.

What Are Your Legal Options in Michigan?

When siblings can’t agree on what to do with inherited property, Michigan law offers

several possible solutions.

Negotiation and Buyout

The simplest resolution is when one sibling buys out the others’ ownership interests.

This avoids court involvement and preserves the property for one heir while fairly

compensating the others. A buyout agreement should be formalized in writing and

based on a recent appraisal to ensure fairness. An attorney can help draft the

necessary documents and update the title to reflect new ownership.

Mediation

If emotions are running high, mediation is often a cost effective and less adversarial

alternative to court. A neutral third party helps everyone communicate and reach a

compromise. Mediation can cover sale terms, use of the property until sale, or how to

divide proceeds. Many Michigan probate courts even encourage mediation before

litigation.

Partition Action

When negotiation fails, a co-owner can file a partition action in Michigan circuit court.

This is a lawsuit asking the court to divide the property, or more commonly, order a sale

and split the proceeds among the owners.

Michigan law allows for two main types of partition.

Partition in kind: The court physically divides the property. This is rare and used mainly

for large tracts of land.

Partition by sale: The property is sold, and the proceeds are divided according to each

owner’s share. While a partition action can be effective, it’s often a last resort because it can be costly

and may strain family relationships further.

What If a Sibling Lives in the Property?

This is one of the trickiest situations. In Michigan, one co owner generally has the right

to occupy the property, but they don’t have the right to exclude the others or live there

rent free forever.

If one sibling lives in the home, the others may be entitled to “occupancy rent” or

reimbursement for property expenses, taxes, or insurance. These credits and offsets

are often handled during a buyout or partition sale.

An attorney can help document who has paid what and ensure that each sibling’s

contributions are fairly considered before proceeds are distributed.

Avoiding Inherited Property Conflicts Before They Start

While disputes can often be resolved, the best approach is to prevent them entirely

through clear estate planning.

Here are a few ways Michigan residents can make things easier for their heirs.

Use a Lady Bird Deed.

This allows property to transfer automatically upon death without probate, while the

original owner retains control during their lifetime. It also lets them name a single

beneficiary or specify shares clearly.

Establish a Trust.

Placing real estate in a trust lets the trustee manage or sell the property according to

the grantor’s wishes, reducing confusion and conflict.

Appoint a Responsible Personal Representative.

Choosing someone impartial and organized can prevent family disputes during probate.

Communicate Wishes Early.

Explaining decisions about property to children before death can prevent

misunderstandings later.

How an Attorney Can Help

Inherited property disputes combine emotional complexity with legal technicality. A

Michigan probate or real estate attorney can:

-Review the deed, will, or trust documents to clarify ownership.

-Represent you in a buyout or mediate negotiations.

-File or defend a partition action if necessary.

-Help draft and record new deeds to reflect ownership changes.

-Ensure property taxes and title transfers are handled correctly.

Having professional guidance can protect your financial interest, and often help

preserve family relationships by ensuring the process stays fair and lawful.

Final Thoughts

Disputes over inherited real estate can turn even the closest siblings against each other.

While emotions are natural, it’s important to remember that Michigan law provides clear

paths to resolution. Whether through a negotiated buyout, mediation, or court ordered

sale, co-heirs have options to settle disputes fairly and move forward.

If you’re dealing with an inherited property conflict, speaking with an experienced

Michigan probate or real estate attorney at Leydorf Law can help you understand your

rights and guide you toward the most practical and peaceful solution.