Father terminally ill - his will is causing problems

System

Tiddlywinks wrote: »

If he is a solicitor then the will *should* have been drawn up with tax efficiency in mind. Could any of his colleagues give their advice? If not, engage a solicitor to help.

Having cared for a terminally ill mum, I can only offer my opinion... time is precious and shorter than you can ever imagine... please spend that time making the most of your time with your father... you will never get a second chance to do the right thing.

Everything else can be sorted out later.

Sorry you have been through this too. I know how precious time is, I have left my baby 200 miles away to care for him since April, and this is the hardest thing I've ever done

Mojisola

MagicCarpet wrote: »

his ex won't challenge

People can behave in strange ways when there's an inheritance to be had.

If the ex knew that your father had changed his will so that she would get, say, £100k instead of £200k so that you and your brother would be left with more, she might see it well worth her while to challenge a new will.

System

fluffymuffy wrote: »

Sounds like your father's a clever person, able to cope with the facts. Just tell him his estate isn't worth what he thought, and is he aware of the effect of tax. My father was having business meetings during his final hours in a hospital bed. That's who he was. Someone who until the last made every effort to see his family was left in a strong position.

Sounds just like my dad. I would have talked to him until a few days ago, but he has had 2 falls in 4 days and his best friend died last night, he is now emotionally very vulnerable, the time has gone, But have others I need to try and manage who are struggling with his decisions

dzug1

Presumably he had a wife at some stage

What happened to her estate? If it all went to him it can reduce the IHT bill a lot.

Or have you taken that into account?

Toto

I Know nothing of wills and tax, but I do know a bit about having a terminally ill parent and seeing them pass. I just wanted to send you a virtual hug, don't waste a second of the time you have left with him, you will have many years yet to worry about the other stuff. Say everything you have to say until you are left with nothing but loving silence. It seems we only truly realise how precious this time is when it's gone.

MotownFox

Does the value of the flat take into account the fact there is a sitting tenant, as it's not vacant possession the value would be less. Of course the downside to that is that when the property is eventually sold there may be a CGT liability for you and your brother. The actual liability would also depend over what period of time was involved, and take into account any improvements made.

Also as mentioned by dzug if your father was married and she died and did not use all of the IHT threshold then there will be more than the £325k threshold available.

troubleinparadise

Dear Magic Carpet,

Sorry to hear that your father is so unwell.

My fear is this...his ex partner will get £200k and pay no tax so the tax bill will fall to my brother and I.

The tax is paid from the estate, so you personally won't pay any tax on the sum inherited; however, depending on the wording of the will the residue will be reduced by the amount of tax paid.

If the wording says that the specified amounts (£200k & £15k) are to be free of all tax - then the estate pays the tax (that might be apportioned to the specific amount) and the legatee receives the amount stated.

I appreciate you are asking for clarification on behalf of someone else's feelings - but having been through something similar, try the tack that your father wrote his will knowing his wishes (you infer he is an intelligent and educated man), and the implications of those wishes - even if he has over-valued his house. Any amount received is a pleasant bonus, and forget that it might seem that someone else has done better.

As has already been said, if his previous spouse's (your mother?) estate went directly to him, then it may well be that the nil rate band can be transferred, which would reduce the IHT sum considerably and thus increase the residue.

Focus on your father right now - what is done is done, and just make the most of the time left.

System

Thanks for the responses, they are really helpful, and thanks for kind words which are very much needed right now.

The carry over of spouses allowance isn't appropriate in my dads case, I have no idea of the wording at this time.

I spoke to my brother and he had told dad a few weeks ago that the house was over valued. He told dad, and dad said firmly that is what he was estimating the value at. He knows the imications of what he has done. My brother is broken hearted, he believes the will is a reflection of how much the deceased valued you. I believe dad has done this on purpose, knowing what will happen, for whatever reasons he has. My brother is angry, the ex left 8 years ago a d stole 30 k off dad, they have only been friends again since oct last year. I can see my brothers point, but dad is bonkers as well as everything else and this is the story of his life, he wouldn't be dad if he weren't completely unpredictable and irrational concerning women.

I am trying to be philosophic about it, but that means telling my brother to stop banging on about it, so he now feels let down by my lack of support for his disappointment.

RAS

Hi

You can support your brother's disappointment whilst acknowledging that dad knows exactly what he is doing.

Mojisola

MagicCarpet wrote: »

My brother is broken hearted, he believes the will is a reflection of how much the deceased valued you.

I am trying to be philosophic about it, but that means telling my brother to stop banging on about it, so he now feels let down by my lack of support for his disappointment.

This is how a lot of people feel about the way an estate is distributed. It can leave a lot of hurt and be especially hard to deal with when your emotions are all over the place, dealing with grief.

I hope your brother comes to terms with things but it might take a while.