Inheritance woes
Discussion
My friend's father died at the beginning of June, bequeathing 80% of his estate to her and 10% each to his two other daughters. The estate basically consists of a dwelling and cash.
Some weeks prior to his [expected] death he signed a statement to the effect that my friend could dispose of the contents of his house how she saw fit and to occupy the house, rent free, at his leisure, along with her teenage daughter. He was of sound mind. Two years earlier she had been widowed and the estate of her late husband had finally been settled when she sold their home at the end of May.
She is estranged from her sisters and can only communicate with them via solicitors; the two of them are on good terms with each other. She has offered to buy their 10% stakes in the house for cash. And that's where the problems begin: they are refusing and are demanding she pays them rent, pro rata.
What are the likely outcomes here?
Some weeks prior to his [expected] death he signed a statement to the effect that my friend could dispose of the contents of his house how she saw fit and to occupy the house, rent free, at his leisure, along with her teenage daughter. He was of sound mind. Two years earlier she had been widowed and the estate of her late husband had finally been settled when she sold their home at the end of May.
She is estranged from her sisters and can only communicate with them via solicitors; the two of them are on good terms with each other. She has offered to buy their 10% stakes in the house for cash. And that's where the problems begin: they are refusing and are demanding she pays them rent, pro rata.
What are the likely outcomes here?
They own 10% of the house and other assets.
Your friend cant buy them out as they are being difficult, probably are going to have an issue selling due to them too, so would need to apply to a court for an "order for sale".
So the only option I would see is that they offer 5% above (or something similar) as a sweetener, pay 10% rent, or finally force a sale.
Your friend cant buy them out as they are being difficult, probably are going to have an issue selling due to them too, so would need to apply to a court for an "order for sale".
So the only option I would see is that they offer 5% above (or something similar) as a sweetener, pay 10% rent, or finally force a sale.
Who is the Executor of the estate? As said, it may be easiest to work out how much the Sisters are owed and pay them that.
If the will only stipulates that they are entitled to 10% of the estate, then a cash sum would satisfy that. She could include a payment for "rent" to date, if it would get them off her back.
Tim
If the will only stipulates that they are entitled to 10% of the estate, then a cash sum would satisfy that. She could include a payment for "rent" to date, if it would get them off her back.
Tim
Taita said:
OddCat said:
.....your friend could always do the decent thing and split everything 3 ways....
That's not what the father wanted though is it 
OddCat said:
If my parents 'fell out' with my brother and left everything to me then, unless he was a crack head who couldnt be trusted with money (I which case I'd create a trust), or maybe a child murderer (or something similarly unforgivably awful), he'd be getting 50% regardless.....
Why? Don't you parents' wishes count for anything.Mate of mine is potentially in this situation with his wife. She is close to parents, but parents have been "no contact" with the other daughter for 15 years.
Now his wife speaks to her sister. They're not best buddies but aren't enemies either. Sister has made some poor choices re men and has 2 kids with 2 dads, neither of whom are around anymore. Parents' will leaves 100% to my mates wife. And they aren't poor. Nice house, holiday home etc.
The sister kind of assumes she is getting half regardless, but mates sister has no intention of splitting it with her.
It's her parents' money, and they want her to have it in full, so that's what she is going to do. TwigtheWonderkid said:
OddCat said:
If my parents 'fell out' with my brother and left everything to me then, unless he was a crack head who couldnt be trusted with money (I which case I'd create a trust), or maybe a child murderer (or something similarly unforgivably awful), he'd be getting 50% regardless.....
Why? Don't you parents' wishes count for anything.Mate of mine is potentially in this situation with his wife. She is close to parents, but parents have been "no contact" with the other daughter for 15 years.
Now his wife speaks to her sister. They're not best buddies but aren't enemies either. Sister has made some poor choices re men and has 2 kids with 2 dads, neither of whom are around anymore. Parents' will leaves 100% to my mates wife. And they aren't poor. Nice house, holiday home etc.
The sister kind of assumes she is getting half regardless, but mates sister has no intention of splitting it with her.
It's her parents' money, and they want her to have it in full, so that's what she is going to do. Of course that also means they have to deal with any legal/tax issue of giving someone money or items.
mathmos said:
No, I do t think so, the person with a will can express wishes but once they have passed on it's entirely up to the recipient, whatever was willed is now theirs and up to them what they do with it.
Of course that also means they have to deal with any legal/tax issue of giving someone money or items.
You can legally vary the bequeath so that there is no possible gifting IHT issues.Of course that also means they have to deal with any legal/tax issue of giving someone money or items.
ked over by your fCider...
Gosh. A lot of this depends who the executor is...is the executor your friend? If so it gets sticky...
If not, then I think it's quite straightforward, the executor can have the dwelling valued correctly..perhaps using two or three reputable independent surveyors. Take the highest valuation,...trust me it's easier that way... and the executor then pays with your friends money the minority beneficiaries fair share.. I think this is the executors call...not the beneficiaries..
I think the minority beneficiaries need a stern chat from a solicitor or the executor as to their rights at this stage...
Where there's a will there is always a war...
Gosh. A lot of this depends who the executor is...is the executor your friend? If so it gets sticky...
If not, then I think it's quite straightforward, the executor can have the dwelling valued correctly..perhaps using two or three reputable independent surveyors. Take the highest valuation,...trust me it's easier that way... and the executor then pays with your friends money the minority beneficiaries fair share.. I think this is the executors call...not the beneficiaries..
I think the minority beneficiaries need a stern chat from a solicitor or the executor as to their rights at this stage...
Where there's a will there is always a war...
Nothing like a death in the family and potential inheritance to get any potential vultures circling.
Seen it before, relative dies and some relative no one has ever met turns up to the funeral and within a few weeks they are attempting to worm their way into the equation.
I remember going to the funeral of a grandparent at their house a few years ago. Immediate family only in the house and some woman turned up with her daughter and sat right down in the main room. Nobody had a clue who they were but nobody made enquiries until after the main event.
Turns out they were the grandparents brothers cousin or something and for the next few months they made several attempts to find out if their was any money coming their way.
Seen it before, relative dies and some relative no one has ever met turns up to the funeral and within a few weeks they are attempting to worm their way into the equation.
I remember going to the funeral of a grandparent at their house a few years ago. Immediate family only in the house and some woman turned up with her daughter and sat right down in the main room. Nobody had a clue who they were but nobody made enquiries until after the main event.
Turns out they were the grandparents brothers cousin or something and for the next few months they made several attempts to find out if their was any money coming their way.
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