Dad left us his share in trust, Mum just sold..

Lynsab

I hope I'm in the right area of the forum, but it's just general advice needed on recent events.

Dad died seven years ago, mum and he had drawn up wills as tenants in common leaving their share in trust for myself and my sister.

Last year Mum by her own choice but with my help opted to live in a really nice residential home nearby. All went well at first, she liked it very much and in fact thrived, so she put her empty house on the market, I cleared it of her belongings and it just sold completion was last month. She now has the balance in a savings account to help her self fund in the care home.

While sorting thru her papers I saw she had changed her will to leave her estate to us both, no change really. But my sister has questioned how she was able to sell the house without half of its value being put into a trust for us until her death.

I never thought about that as I assumed that once a property sells the trust is cancelled. Of course she may well need all of the funds to continue paying for her care, my sister seems to think dads wishes were such she should only have half the value while the other half stays in trust. I need to find out what's correct, and maybe why mum made another will four years after dad died, maybe she got worried.

I along with my sister have Power of Attorney over her financial affairs and have just overseen investing some of her cash and sorted out direct debit for her fees, everything I thought was sorted!

Now it seems something is being questioned, mum has now got mild dementia and yesterday said she may take the POA away from my sister back to her solicitor.

I need some advice on what to tell my sister, as I think she has it wrong.

cte1111

I think your sister is correct - half of the sale proceeds should go to you and your sister. Have you got a copy of your Dad's will?

TonyMMM

It sounds like ownership of the property was never changed after your father's death, which would explain why the sale could go ahead.

Who was the executor of your father's will ?
This is something that should have been dealt with by them.

Lynsab

cte1111 wrote: »

I think your sister is correct - half of the sale proceeds should go to you and your sister. Have you got a copy of your Dad's will?

Yes I have, it's all gobblygook to me, but I remember them both telling me in detail they were both doing this, in case one or the other needed future care, then the other wouldn't be forced to sell.

RAS

So who are the executor(s)?

Lynsab

:money:

TonyMMM wrote: »

It sounds like ownership of the property was never changed after your father's death, which would explain why the sale could go ahead.

Who was the executor of your father's will ?
This is something that should have been dealt with by them.

It says on it my mum is the executrix and trustee, this was on my dads will. Mum since made a new will in 2009, which is worded a little differently but leaves her estate to us. I never questioned it at the time, but it turned out my sister told her that half the property was now in trust for us. But I think that's incorrect as it still her property to do with what she wanted until her death.

RAS

Ask mum if she ever executed the estate/applied for probate.

Or ring the Probate Registry and ask if this was done?

Lynsab

No she didn't. What I don't understand is both Wills the two made together as tenants in common in 2002 and the new one Mum made in 2009 were both written up by the same solicitor! So I assumed he knew what he was doing....

RAS

She is personally liable for any losses to yourself and your sister for failing to execute the will correctly.

getmore4less

I would check with the solicitor what they have done.

I think(the land reg rep will know) that if the place was TIC then the sale would have required some action and almost certainly probate for the fathers share.

I think the legal ownership could have been changed to just mum but the benifitial interest of 1/2 would still be the trust set up by the will.

You also need to check the fathers will as to what happens to the proceeds when the house is sold, it may be that any life interest stops then or the proceeds can be used to fund further properties remaining in trust.

The change in mums will is likely neutral and just tidying up since part of it no longer applies.

securityguy

Lynsab wrote: »

Yes I have, it's all gobblygook to me, but I remember them both telling me in detail they were both doing this, in case one or the other needed future care, then the other wouldn't be forced to sell.

They were badly, or at least wrongly, advised. House sales cannot be forced in order to pay for the care of one spouse if the other needs care; at most, it's possible for an interest to be taken so that the fees are repaid from the estate. It would be nice if people made rational decisions, rather than taking advice from the other members of the Darby and Joan club. Estate planning is like school applications: facts appear unable to withstand the force of rumour.

In this situation, there is the potential for the mother to end up in low-quality council care while her children count their winnings; it seems unlikely that the father would have wanted that.