Inherited House
Discussion
That’s a surprisingly complex question. Generally liabilities are paid out of the “residue”, specific bequests are just that. So if the will says i leave x my house and a,b,c the balance of my estate three ways, a,b,c will pay the nursing home fees. If the will says i leave a,b,c £100k each and the balance of my estate, which includes the house to X then X gets whatever is left after debts, funeral expenses, IHT etc. If the house has to be sold so be it.
Worth taking specialist advice - look for a solicitor who is STEP (society of trusts and estate practitioners) registered.
Worth taking specialist advice - look for a solicitor who is STEP (society of trusts and estate practitioners) registered.
paoloh said:
The issue is.
The house has been left to one sibling and all cash to all three siblings.
If property is sold, would the proceeds now be considered “cash” and be split among all siblings?
Who’s going to sell it? The executor has to follow the Will- if they sell it that wouldn’t be following the wishes of the deceased. The house has been left to one sibling and all cash to all three siblings.
If property is sold, would the proceeds now be considered “cash” and be split among all siblings?
Do you have legal cover on your house policy / car policy? If yes - call them and they will be able to help (for free).
Are the 3 stating if it’s cash and no house they want 100% and this other person gets 0%? I know people always have a vested interest but I cannot imagine how this would play out
The executor(s) are obliged to settle the debts owed by the deceased. This can involve having to sell assets such as a house or car, even if there is a specific bequest leaving it to someone.
There may also be other things in play regarding a house, such as a charge on the property.
OP - as an earlier reply said, a lot can turn on how the will is drafted and what is regarded as the residual estate. You should get a proper view from an executry solicitor who can see the terms of the will and any other paperwork.
There may also be other things in play regarding a house, such as a charge on the property.
OP - as an earlier reply said, a lot can turn on how the will is drafted and what is regarded as the residual estate. You should get a proper view from an executry solicitor who can see the terms of the will and any other paperwork.
Debts are to be paid first from the residue, then from pecuniary legacies and finally from specific legacies.
So in this case the bill must be paid out of the cash left to the three siblings. It's unfair, and unlikely to be what the deceased intended, but that's the problem with leaving specific properties to people, rarely a good idea.
Of course there's nothing to stop the sibling to whom the house was left agreeing to share it with the other two ...
So in this case the bill must be paid out of the cash left to the three siblings. It's unfair, and unlikely to be what the deceased intended, but that's the problem with leaving specific properties to people, rarely a good idea.
Of course there's nothing to stop the sibling to whom the house was left agreeing to share it with the other two ...
Pro Bono said:
Debts are to be paid first from the residue, then from pecuniary legacies and finally from specific legacies.
So in this case the bill must be paid out of the cash left to the three siblings. It's unfair, and unlikely to be what the deceased intended, but that's the problem with leaving specific properties to people, rarely a good idea.
Of course there's nothing to stop the sibling to whom the house was left agreeing to share it with the other two ...
If he was to share it with the other two wouldn’t he then be gifting it to them so 7 years to ensure it is tax free else if he dies in the 7 year period tax is due. So in this case the bill must be paid out of the cash left to the three siblings. It's unfair, and unlikely to be what the deceased intended, but that's the problem with leaving specific properties to people, rarely a good idea.
Of course there's nothing to stop the sibling to whom the house was left agreeing to share it with the other two ...
Idle curiosity, if the house had to be sold to settle the debt, the residue of that is now cash, so would that flip who gets what? The person who was left the house can’t receive it as it’s been sold. The people left the cash get the residue?
In practice you’d hope a sensible compromise was found, but where there’s a will, the worst b3havioyrs can often appear.
In practice you’d hope a sensible compromise was found, but where there’s a will, the worst b3havioyrs can often appear.
Heres Johnny said:
In practice you’d hope a sensible compromise was found, but where there’s a will, the worst b3havioyrs can often appear.
How very true, leaving a house to only 1 sibling is never going to end well.Surely the answer is to sell the house, put the money in the pot, pay off all the outstanding bills/debts and then split the pot between the siblings.
Of course it's not this simple if there has been a family feud and each sibling gets/expects a different amount! Then you're in the
NGee said:
Heres Johnny said:
In practice you’d hope a sensible compromise was found, but where there’s a will, the worst b3havioyrs can often appear.
How very true, leaving a house to only 1 sibling is never going to end well.Surely the answer is to sell the house, put the money in the pot, pay off all the outstanding bills/debts and then split the pot between the siblings.
Of course it's not this simple if there has been a family feud and each sibling gets/expects a different amount! Then you're in the
But yes difficult.
Wills should always be discussed before death so there are surprises
Nursing home fees can be a minefield. Mrssospan’s aunt went to one. The payment of fees depended on the level of care needed. Basically, pue residential paid by her. If medical assistance needed then the local council/nhs would be involved in an assessment and they might then contribute. With our aunt this changed as her health improved/deteriorated and her needs increased/decreased.
It is not always straight forward. In the end her fees were covered by the state due to medical needs.
When she died her house was sold and some of the money used to cover some outstanding care costs. In her final days her health was very poor and fees were paid 100% by the state.
That sounds straight forward. IT ISN’T !
Red tape, changes in care level etc meant a fluid situation.
There are basically two areas to deal with.
The funding of care during the stay at the care home.
The will and pecking order for distribution to parties involved, i.e. HMRC, care costs owed, named beneficiaries.
Hopefully the beneficiaries won’t be argumentative about their share. There are some real t###s in families. Inheritance seems to bring out their sense of entitlement and greed.
It is not always straight forward. In the end her fees were covered by the state due to medical needs.
When she died her house was sold and some of the money used to cover some outstanding care costs. In her final days her health was very poor and fees were paid 100% by the state.
That sounds straight forward. IT ISN’T !
Red tape, changes in care level etc meant a fluid situation.
There are basically two areas to deal with.
The funding of care during the stay at the care home.
The will and pecking order for distribution to parties involved, i.e. HMRC, care costs owed, named beneficiaries.
Hopefully the beneficiaries won’t be argumentative about their share. There are some real t###s in families. Inheritance seems to bring out their sense of entitlement and greed.
paoloh said:
The issue is.
The house has been left to one sibling and all cash to all three siblings.
If property is sold, would the proceeds now be considered “cash” and be split among all siblings?
What does the will say?The house has been left to one sibling and all cash to all three siblings.
If property is sold, would the proceeds now be considered “cash” and be split among all siblings?
This is actually quite a common scenario, and a good solictor would have drafted the will to protect the beneficiary of the house in the event the house is sold before the person dies . (Assuming the will was drafted by a solictor and was not a DIY job)
If the will was drafted by a solictor, and the person who would have got the house ends up with nothing, then the beneficiary potentially has a case for negligence, but you should seek advice from a solictor who specialises in private client work.
Edited by mdglen on Monday 23 May 11:06
mdglen said:
What does the will say?
This is actually quite a common scenario, and a good solictor would have drafted the will to protect the beneficiary of the house in the event the house is sold before the person dies . (Assuming the will was drafted by a solictor and was not a DIY job)
If the will was drafted by a solictor, and the person who would have got the house ends up with nothing, then the beneficiary potentially has a case for negligence, but you should seek advice from a solictor who specialises in private client work.
Yes, we know a sort of "old money" family where the fairly magnificent house, which they inherited, has been left to the eldest child, who is pretty wealthy herself through marriage. Apparently the parents are close to broke so the other two siblings aren't expecting anything. The older one will probably send the others a share of the inheritence tax bill.This is actually quite a common scenario, and a good solictor would have drafted the will to protect the beneficiary of the house in the event the house is sold before the person dies . (Assuming the will was drafted by a solictor and was not a DIY job)
If the will was drafted by a solictor, and the person who would have got the house ends up with nothing, then the beneficiary potentially has a case for negligence, but you should seek advice from a solictor who specialises in private client work.
Sheepshanks said:
Yes, we know a sort of "old money" family where the fairly magnificent house, which they inherited, has been left to the eldest child, who is pretty wealthy herself through marriage. Apparently the parents are close to broke so the other two siblings aren't expecting anything. The older one will probably send the others a share of the inheritence tax bill.
That's how people stay 'old money'.Forums | Speed, Plod & the Law | Top of Page | What's New | My Stuff