A very long, despairing post

seriousDFW

I really don't understand how the resolution to this can not have been set in motion yet. I understand that Brother 1 is dragging his heels making complaints and coming up with bizarre ideas about what he wants to happen, but doesn't the solicitor you've instructed have to just get on with what the will has instructed? I don't understand why they are just sitting on their hands. Why aren't they forcing the sales of the properties? Have you asked? I don't know anything about the law in this respect, but at what point will the solicitor actually do what is required of the will, because surely they don't want this to go on indefinitely?

Gingernutty

I suspect that the solicitor has no idea about the 5 year plan. Brother 2 and I certainly had no idea about it when we went to the initial meeting with the retiring solicitor back in March.

I need to do two things

1) Write to Brother 2 and decide with him how we want to proceed. We need to show a united front to Brother 1 and the solicitor.

2) I need to write a carefully worded email to the solicitor, explaining Brother 1's plan, his ignorance of the tax laws and how, if we are to keep this going for 5 years, we'll need to retain her services until the properties are sold.

I want her to specify how much this will cost over time and lay it down in black and white for us all to see.

Brother 1 has no idea about fees, taxes or anything and is happy to eye up the 'profit' from renting out the flat.

This before the flat has been rented out - there's no money coming in at the moment and won't be for some time.

I suspect showing him that there will be no profit after income tax, inheritance tax instalments, inheritance tax interest and solicitors' fees will make the "do up the house using the rent from the flat" plan look rubbish and give Brother 1 a well needed boot up the *rse.

We may even end up having to pay more money - money I certainly can't afford.

I have said repeatedly that I'm skint, working on the wages of an NHS trainee (so many % of some pay band) and I'm bouncing along the bottom of my overdraft.

Brother 2 and his wife are already having to liquidate a bond to pay the fees so far - Brother 1 knows this too.

Until he sees that his plan is a pile of c*ck, Brother 1 will not budge. I don't want to see my relationship with either of my brothers break down irretrievably - they're all I've got.

The fact that the solicitor has to declare us to the Tax Man should put the fear of God into him.

Thanks for all your help and advice so far.

FatVonD

Gingernutty wrote: »

I want her to specify how much this will cost over time and lay it down in black and white for us all to see.

I think that may be beyond her remit, I'm sure she's well versed in the matters of inheritance tax but to give you a projection over 5 years may require you appointing an accountant.

Dear new solicitor,

I'm not sure if original solicitor has told you but brother 1, at our previous meeting, suggested a scheme whereby we hold on to both properties for 5 years.

While brother 2 and myself didn't dismiss this idea immediately (as this was the first we had heard of it and we wanted to give it due consideration) having now had time to reflect neither brother 2 or myself wish to proceed with this plan and I am hereby instructing you to sell both properties and divide the profits, after fees, as specified in the will.

Brother 2 has moved out of property 1 with the intention of renting it and into property 2 and we would appreciate it if you could communicate to him the need for vacant possession of both properties in order for them to be sold in accordance with the will.

It really is that simple.

burnoutbabe

why do you even need to explain it to brother 1 with costs/projections.

will says places are sold. So sell them (and people need to move out of places now so they can be sold). Tell solicitor to put place on the market and do whatever legally to get the brother out.

Gingernutty

:mad: [STRIKE]Aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaah!![/STRIKE] :eek:

[STRIKE]There have been more than a few hiccups since September. We missed the deadline for the Inheritance Tax payment by a mile and our solicitor made a deal with the tax man that we would owe interest while we took steps to sell the house to discharge the debt (Inheritance Tax), interest and fees.[/STRIKE]

[STRIKE]The deal with the tax man was virtually signed in blood and failing to adhere to the deal could get the solicitor accused of gross professional misconduct.[/STRIKE]

[STRIKE]Brother 1 rang me up this week and told me that he'd taken the house off the market so that he could do a bit more work to the house and get a better price for it. He's so pleased with himself it's unreal![/STRIKE]

[STRIKE]The dopey canute doesn't seem to realise the trouble we're now in![/STRIKE] :mad: :eek: :mad: :eek:

[STRIKE]When he told me what he'd done, I was in the middle of a shop trying to pay for something and it was all I could do not to wet myself![/STRIKE]

[STRIKE]I can't think about this without hyperventilating. I am so angry, I can't think straight![/STRIKE]

[STRIKE]Not only has he taken steps to prevent the tax man getting his pound of flesh, the solicitor will skin us![/STRIKE] :eek: :mad: :eek: :mad:

[STRIKE]There's tax evasion, the possibility of criminal prosecution and punitive fines and then, when the tax man's finished with us, the solicitor can weigh in.[/STRIKE]

[STRIKE]There's the breach of contract, costs of defending her licence to practice, loss of earnings and if her licence is revoked (unlikely, but possible) then there's loss of future earnings.[/STRIKE]

[STRIKE]The dopey canute has done something so monumentally, financially, suicidally, irredeemably and criminally stupid that I think he's just redefined the word stupid.[/STRIKE]

[STRIKE]He's jeopardised the entire estate. Now I know about it, as a joint executor I have to do something about it.[/STRIKE]

[STRIKE]If he doesn't put the house back on the market first thing Monday, I'm telling the solicitor. I have to.[/STRIKE]

[STRIKE]And just to add to an already crappy day, the National Express website is playing up so I've had to ring a premium 08717 number to book a return ticket for tomorrow.

I've lost my job. I've found temporary bank work up at the hospital which let me go but it's 'very as and when required'. I'm running on peripatetic wages and an overdraft.

The last thing I need is to pay full price (£26.80) for a ticket texted to my 'phone because the funfare function isn't playing.

I'm dreading tomorrow. I'm choking already.[/STRIKE] :mad: :eek:

Yorkie1

Good luck tomorrow :-(

Gingernutty

I have never been so thrilled to have been wrong in all my born days! :T

Seriously. :T

The house is still on the market. It's still on the agent's website and it's still on Rightmove (nope, you can't see it). However, instead of individual viewings, the estate agent is taking the names of interested parties so they can be invited to an open day in a few weeks time.

The trouble the viewers had was that the house was too much of a 'project' and required a lot of work before we got what the house is worth.

In the meantime, Brother 1 will finish some improvements which should see the house put on the market for (get this) over £400 grand more than the initial valuation. :T :beer: :j

Did I tell you that I love my brother loads?

I am so relieved, I can't tell you.

As you were.

Gingernutty

The house is back up on all the websites at the new, higher price. :j

I can't tell you how relieved I will be when this is all over.

The plan is the one I came up with. Brother 1 has raised the value of the house by so much, that when all taxes, interest and fees are paid and the residue split two ways, the difference while not exactly negligible, is doable.

If we split the residue three ways, sell the flat and split the sale proceeds three ways again, we each get approx. £33k each more than the proceeds of the house split two ways.

We are dealing with such massive amounts of money that 'only £33k' isn't worth bothering about.

If the house sells for the price it's on for I'll be happy.

Bangton

Best of luck ginger nutty. Hope it sells and you can put this awful drawn out hassle behind you x

swampduck

What a to do? All the to-ing and fro-ing! No wonder you are stressed out and you have enough worries on your plate with your own financial concerns without worrying about your brothers financial concerns. Hard as it may seem you need to take a step back and look at the whole picture and start being hard headed about stuff.
It needs to be made clear that if there are expenses such as nursing home fees then these must be presented to the estate/solicitor for payment from the estate. As should any other expenses - you may decide to write off 21 years rent but then your brother should write off new carpets etc as he has lived very comfortably in that time. All expenses including the solicitors, HMRC, IHT, evicting tenants, in fact everything to do with administering the estate needs to come from estate money. Only then can you and your brothers benefit from any residue of the estate. You are all worrying about having to pay extra tax and so on - if your well off brother pays tax at 40% that is his concern not yours.
If you opt to inherit a property as opposed to selling it the you will have to pay CGT that's the law of the land - it's tough but that's the way the cookie crumbles. If it turns out that's there's very little left after all expenses have been paid then that too is just tough. I rather think that everyone has been blinded by the fact that the estate is worth XXX hundreds of 1000s and that you are entitled to the full share. You only get what's left - if your dad owed the taxman 2 million in back tax you wouldn't see a penny of it!!
You should all be thankful to your Dad who worked hard to leave his kids something to inherit even if the taxman does get in first!!

Swampy