can someone explain "probate" to me please??

bikingbarney

Hi all im after some help.

Basically the story goes like this....
My father in law was left a 10% share of his best friends house in his will, this friend sadly passed away just after christmas and my FIL only found out about this 10% then.

father in law is executor of will by the way.

The best friend had sold his house to one of these companies that buys your house but then lets you live in it.

Now the time has come to sell the house my FIL is having to do all the running around (sorting out and removing the rest of the best friends stuff from the house, getting a plumber to turn off water and gas etc)

he has also had to get the house to a reasonable standard to put on the market which has involved hiring various garden machinery to clear a very overgrown garden and also remove the ivy from the front of the house.

he has just had a conversation with the company that bought the house in the first place and they have said that they want the house to go to"probate" and that my FIL is liable for the fees and costs involved??

can someone explain to me iwhat probate is and if my father in law is liable as his 10% is getting smaller and smaller(he has had to pay for the best firends funeral aswell by the way)


thanks

steve

simpywimpy

Your FIL will have to apply for probate which is a legal document that gives him permission to deal with the estate. The fees/costs for doing this comes out of the estate if there are any funds available BEFORE any bequests are made from the remainder.

You can do probate by getting the forms online and they are very helpful. You will need to get the house valued and any other assets.

What concerns me is you say the friend sold the house to a company? So is it the friends house or not? I think you may need to clarify this point with the paperwork at the house or the company involved. If the deceased friend doesnt own the house then you need do nothing to it other than remove the personal effects.

The funeral costs also come from the estate - not your FIL...

dzug1

If the friend had actually sold the house to a company prior to his death, then the 10% share your father in law has been left doesn't exist.

In this case (and I'd check it out carefully) I suggest he should renounce the executorship, put a bill in to the company that owns it for the funeral costs and possibly for work done and walk away from the problem. He is not personally liable for anything.

cottager

With an equity release scheme it's possible only part of the property was sold, so perhaps it is the case that 10% was able to be left to the OP's FIL??
http://www.moneymadeclear.fsa.gov.uk/pdfs/equity_release.pdf

Mrs_Money

Yes, my parents have done a similar equity release scheme - you sell (most) of your house to an equity release company - you are allowed to live in it for the rest of your life and can retain a share in it - sometimes a lump sum figure, sometimes a percentage.

If there's no other money in accounts or property - it may be a good idea for the OP's FIL to check the value of the house with a local estate agent - work out what 10% of this is etc., etc., Once Grant of probate is issued then the executor of the estate can get access to any bank account funds etc (if he is the sole beneficiary and there looks like there is not a lot in the estate to inherit - he may want to think about relinquishing his role as executor!
We are just about to apply for Grant of probate for my FIL's estate - we are going to try to do it ourselves - solicitor quoted £400 - it's a few pages to fill in , a £90 fee, and inheritance tax form to fill in and an appearance at the probate office - not too difficult - I hope.
I hope the OP's FIL kept receipts for all work done and monies spent on the house. Perhaps "getting it ready" for sale was beyond his remit (although it may ensure a bigger return for his 10%.)
This all sounds like a lot of effort for very little return - and possibly even an actual loss if he is held responsible for any debts. If the house is valued for example, at £250,000 then a possible outcome of £2500 leaves very little - I hope the equity company are responsible for estate agents and conveyancing fees!
If there is no other money in the estate, perhaps an application for DSS help with the funeral may be in order. Most funerals cost around £3000-£4000.
It's something to think about.