A very long, despairing post

Gingernutty

RAS wrote: »

But that is not going to happen is it?

Isn't it? HMRC actually gives an instalment option, Brother 1 thought it was a good idea and because we didn't want to openly oppose him and cause a row in front of the solicitor, we didn't say no at the time.

RAS wrote: »

The solicitor needs to execute the will. Given that there is nothing saying brother 1 will get either property, the only way to execute the will is to sell both properties.

You know that and I know that but Brother 1 is so hell bent on the 'instalments option' that he won't listen

RAS wrote: »

You say the solicitor did no like the valuation? why? Is he trying to reduce either inheritance tax laibility by getting a lower valuation? or reduce any subsequent CGT liability by getting a higher vaulation?

I've directly asked him by email and he hasn't answered other than he's dissatisfied.

Now we're in this situation where we're at the end of July and we've got just August to get a tax calculation which hopefully will show Brother 1 just how pie in the sky his idea is

peachyprice

Gingernutty wrote: »

Thanks to Brother 1's proposed plan to repay the Inheritance Tax in instalments, the rental income is going into one account which will be used to pay the tax, the solicitor and any fees.

So it's not going to be split three ways between us and we'll never actually see the money we'll be paying income tax on from our existing incomes.

That won't be forever more though will it. Once those things are paid there will be an income.

Gingernutty

After about a decade and with Brother 1 sitting on over a £1m of our joint inheritance.....hence the despair.

BitterAndTwisted

I think you are getting ahead of yourself and fretting about things which may never come to pass.

What has the solicitor advised about this IHT installment plan? As far as I know no IHT gets paid by the beneficiaries, it will be paid from the estate before you see your inheritances.

The whole estate needs to be liquidated so all taxes can be paid and the estate distributed according to the will. Brother 1's shenanigans will only succeed in drawing the whole process out but it cannot be stopped. Most especially if you and Brother 2 are in agreement about what needs to happen.

Savvy_Sue

Is there anything to stop you getting a second valuation and submitting that to the solicitor? Or asking him to obtain a second valuation? I know you shouldn't have to, but as I said before, he is working on your instructions.

Scorpio33

If he wants to pay IHT in installments then fine, but then each of your share of the estate which needs to pay the IHT needs to go into that account and not be accessible by any of you threee, as it is needed to pay the IHT.

Seems like Brother 2 just wants to avoid paying his share of IHT, as when it comes to it, he "won't have the cash".

Be strong!

FatVonD

I've not been around much for the last couple of days so apologies if someone has already said this and I've missed it but it occurs to me that you need to play brother 1 at his own game.

Tell him that since you're single (you haven't mentioned a partner so I'm assuming?) and less financially secure than either brother and won't be inheriting a share of the family business you think it's only fair that you should get more than a third share of the inheritance plus you need the money to fund expensive fertility treatment and you're sure they won't mind supporting your children.

Brother 1 will be running to the solicitor sharpish insisting that the conditions of the will are adhered to to the letter!

RAS

Lost a huge post - only going to make a couple of comments now.

Gingernutty wrote: »

He died ‘property rich and cash poor’.

Err no.

Your father had a house in which he lived and a rental property. Had the rental property being producing anything like £2000 per month in recent years he could have afforded to keep huis house in good repair and have affford support to make living a home easier.

But for the cuckoo in the nest.

In the last 4 years brother 1 has been subsidized by father to the tune of some £80,000. oveer the last 20 years, how much do you think he has had? A quarter of a million quid, maybe half a million at current prices?

RAS

Gingernutty wrote: »

Brother 1 had the idea of moving his family to the house, getting the flat ready and then renting the flat out to help cover the nursing home fees.

Clever really. Now dad is not in the house, move into that nest claiming to do to up and hey presto place self nicely for when dad dies. How about he just paid the normal rent on the flat himself, which would have left an empty house which is much easier to renovate?

RAS

Gingernutty wrote: »

During all this, the solicitor .....has also started a small war with the estate agent that Brother 1 uses as a lettings agent.

The estate/lettings agent are maintaining ‘radio silence’ to all but Brother 1

A t least the solicitor is trying to do his job here.

Firstly, the income belongs to the estate

Secondly, in order to even market the flat, you need vacant possession. If the flat is let out again it will be 6 months, possibly a year for the AST and it could take another 4-6 months to remove recalcitrant tenants.

Brother 1 may have no idea of his duties as a landlord and probably does not realisi that tenants are entitled to quiet enjoyment - which means no sales viewings whilst they are in the property unless they agree and at time to suit them.

So make sure it is not let again.

The solicitor also needs to know whether any tax debts exist from prior to dad's death and to deal with the on-going costs.