DEAR JEANNE & LEONARD: When my father died, he left me a small retail building that for decades has been a stationery store and card shop, owned and operated by the same family. The rent they're paying is about 50 percent less than the rent on comparable properties, and I know why. Dad liked these folks, and as the internet eroded their business, he knew they couldn't afford to pay more. So for the past 15 years, he never raised the rent. Well, I like the family, too. But what they're paying barely covers the taxes, insurance and maintenance expenses. Were they or another tenant to pay the going rate for rent, my family would be able to move from our overcrowded apartment to a nicer home. What should I do? The lease is coming up for renewal, and a large rent increase would put the store out of business.
-- Dan
DEAR DAN: Of course you don't want to put these people out of business. But surely they can't expect you to subsidize them indefinitely at the expense of your family. After all, it's not as if these folks just need a little time to recover from some unfortunate event. On the contrary, the store apparently is no longer economically viable, and the only reason it has survived this long is your father's generosity.
Still, if in exchange for being left the building you promised your father you'd keep the rent low for his tenant, you need to honor your commitment. And even if you made no such promise, you should try to see if there is an increase that they can afford and you can live with. But the bottom line here is that it's your building, and it's not unfair or unreasonable for you to put the best interests of your family ahead of your tenant's.
DEAR JEANNE & LEONARD: My husband and I disagree over how we should divide our estate. Here's the situation: I have a now-adult daughter from a previous marriage, "Samantha," who lived with my husband and me from the time she was 3. Together my husband and I have an adult son. Since Samantha probably will be the beneficiary of a substantial inheritance when her biological father dies, my husband wants to leave our son two-thirds of our estate and Samantha one-third. That way, they should end up with roughly the same amount. But I feel like Samantha's inheritance from her father is irrelevant -- that to be fair, my husband and I should divide our estate evenly between the two children. What's your opinion?
-- Sloane
DEAR SLOANE: Nothing in life is certain, especially inheritances. People change their minds. People lose their money. People get sick and spend all their money on caregivers. Any number of things could derail the bequest your ex-husband is expected to make to your daughter. So until she actually inherits that dough, you shouldn't assume she'll be receiving it, and you should make your estate plans accordingly. If, down the road, she inherits a meaningful sum, you can always reconsider.
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Family on 03/15/2017