'He has never paid rent or utilities:' Do I have the legal and moral authority to charge my brother rent to live in our family home?

By Quentin Fottrell

'My brother has been living there while my father was alive - and still is. He did not pay any rent or utilities'

Dear Quentin,

I will be inheriting my parents' house along with my two other siblings. My brother has been living there while my father was alive - and still is. He has never paid rent or utilities.

Once the deed is transferred to the three of us and the one who is currently there remains, is it reasonable and legal (even if he objects) to charge him market rent minus his one-third value?

I don't expect him to sign a lease. Can the utilities be shut off so he would need to have them put in his name?

Cautious Before Fury

Related: My ex-husband tried to secretly sell our rental home. He now suggests a 70-30 split as he paid maintenance for 20 years. Is that fair?

Dear Cautious,

Brother, where art thou? He's sleeping in his parents' basement.

During the administration of your parents' estate, your sibling is technically living in a house that he does not own. At least, not yet. In that case, some attorneys argue that the administrator would have leeway to ask him to pay market rent for the time he occupies the house during this period. When you legally inherit the home, it gets more complicated.

"If a brother or sister is living rent-free in an inherited house, there are a few questions to consider before taking action," says the Keystone Law Group. "First, is the brother or sister a co-owner of the home? Second, did the previous owner of the property provide them with use and enjoyment of the property for their lifetime?" The answer is yes and yes.

"If the property is co-owned by siblings, and one sibling is living rent-free in the property without having been given explicit permission to do so, the other siblings generally have the right to take legal action against them," the law firm adds. "For example, they could try to get a judgment against the sibling for unpaid rent or try to evict the sibling from the property altogether."

You may ultimately be forced to file a "partition action" to the probate court forcing the sale of the home and dividing the proceeds between the three siblings. In that case, your brother would have to sling his hook and move out. Your parents allowed him to coast, but he's not dealing with his parents anymore. Bad news for him. Good news if he wants to practice "adulting."

Related: 'I don't want anyone telling me what to do': My second husband wants to put our $750,000 home in a trust for his children. Does he have the right?

If partition is a last resort, and you actually wish to use the property as rental income, you could use the threat of a partition action as leverage to persuade your brother to pay. You would also have to come to an arrangement about taxes and upkeep of the property. Once probate is complete, your parents' estate should not continue to be billed for the utilities.

"If the sibling residing in the inherited property rent-free is not a co-owner, then they are subject to the same rules any tenant would be subject to if they were to refuse to pay rent," Keystone adds. "if the previous owner's will or trust provided the sibling with use and enjoyment of the property for their lifetime, then the sibling is free to continue living in the home rent-free."

Here's a rundown of the kinds of ownership that exist for multiple parties: If you were "tenants in common" you could, if something happened to you, leave your share to a third party. The same goes for your siblings. If you own the property as "joint tenants," you and your two siblings each own an equal share and, should one of you die, you cannot leave your share to a third party.

Sometimes, parents leave an adult child who is not financially independent or a second spouse a "life estate." A life estate is a formal agreement that would have allowed your brother to remain there for the rest of his life. Doing this would, in theory, protect the estate from Medicaid liens, for example, and ensure that the home is kept in the family.

The Moneyist regrets he cannot respond to letters individually.

More columns from Quentin Fottrell:

'I'm guilty of helping too much': My married adult son constantly demands money. How do I put an end to his mooching?

'Things are rocky between us': My girlfriend and I sold our Florida home. Our $200,000 profit was wired to her account. She refuses to give me my fair share. What's my next move?

'Not one sibling wants to pony up the money to purchase the property': My father owns a family home with 3 siblings. He spent $100,000 on renovations. Can he force them to sell?

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-Quentin Fottrell

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09-23-24 1621ET

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