How do you force the next generation to cooperate as they share inherited property?

Dear Liz: My husband and his six siblings inherited a large family farm. No one lives there; it is used recreationally. Our limited liability corporation is set up so that only blood relatives can inherit. If they don’t want it, they can sell their share (only to family) for 40% of the value. The seven current owners all pay equally for the upkeep.

Our question is what to do with the next generation if some don’t want to pay their share of the upkeep, and also don’t want to sell. This is a very likely scenario. How to “force” them to pay? About half of the grandchildren (13 of them) will be all in, the other half probably won’t care to pay. My husband and I are the youngest of the owners, and we most likely will need to deal with this someday. If you don’t have a solution, what type of lawyer would be best to consult with?

A. It’s impressive and perhaps even astonishing that seven people have been able to successfully share ownership of this property so far. Expecting the next generation to do the same, with nearly twice as many people involved, is almost certainly asking too much.

An experienced estate planning attorney can offer suggestions on how to manage this property and address options if heirs don’t pay their share, either due to unwillingness or inability. (Keep in mind that heirs who are ready to pay their fair share now may not always be able to do so if their economic fortunes change.) Most likely, forcing payment would require the cousins to resort to the courts, so the current owners need to think deeply about what’s most important: keeping this property in the family or preserving family harmony.

Dear Liz: I need some help understanding health savings account distribution rules. I was injured and bought medical supplies with my credit card, then reimbursed myself from my HSA. When I didn’t need the supplies, I returned them for a refund. What now? It seems like the money should go back to the HSA, but it’s not clear how to do that. Are there tax implications for a non-qualified HSA withdrawal made in good faith?

A. You typically have until April 15 of the following year to return funds mistakenly withdrawn from a health savings account. Otherwise, the withdrawal would incur income taxes and a 20% federal penalty.

Mistakes aren’t uncommon. Contact your HSA custodian, which likely has a procedure to get the money back into your account.

Dear Liz: I’m confused about required minimum distributions from my retirement accounts. I’d like to avoid taxes on my withdrawals, but it seems there is no way to avoid them. Please give me some guidance.

A. If you got a deduction for contributing this money, and you want to keep the funds you’re required to withdraw, then yes, you have to pay taxes on these distributions.

Required minimum distributions from retirement accounts currently have to start at age 73. There are a few exceptions. Roth accounts don’t offer deductions on contributions and also don’t have RMDs. You can postpone RMDs from a workplace plan such as a 401(k) or 403(b) as long as you’re still working for the employer that sponsors the plan, the plan offers this “still working” option, and you don’t own 5% or more of the company.

If you don’t need the money, you could consider donating your required minimum distribution to charity. Known as “qualified charitable distributions,” these donations can start as early as age 70½. As long as the money goes directly from an IRA to a qualified nonprofit, you can avoid paying taxes on the distribution. For 2025, the maximum qualified charitable distribution is $108,000 per individual. (You can’t make a qualified charitable distribution from a workplace plan, but you can roll some or all of the account into an IRA and make the donation from there.)

Sometimes RMDs can be large enough to catapult savers into a higher tax bracket and trigger higher Medicare premiums. If that’s the case, and you’re still a few years away from starting RMDs, consider talking to a tax pro about ways to manage the tax bill. Starting distributions early or converting some funds to a Roth IRA might be options.

Liz Weston, certified financial planner, is a personal finance columnist. Questions may be sent to her at 3940 Laurel Canyon, No. 238, Studio City, CA 91604, or by using the “Contact” form at asklizweston.com.