Distribution of a cash share in a property

madbadrob

Has the property was a part of the business you have now put forward a different proposition. As per the will you now own 3/4 of that business and any bank is going to need the books of the business before they will assess the risk of any mortgage. I would seriously suggest with this latest revelation that you seek legal advice before you and the other executor(s) make a wrong decision.

Don't assume that the other beneficiary wouldnt want an income from the business either. After all the Pound is at present the strongest performing currency

Rob

John_Pierpoint

A very tricky situation, in the main part because there is only one seller and one buyer.
As you have already discovered this situation has already devalued the property by 10% and that is from HMRC's point of view (not know for being a soft touch.)
When coming to the business, there has to an element of "good will" hopefully positive. If the Austrian is well advised, you may find yourself with an agreement that lasts (say) 10 years and is linked to turnover and profits.
As with a divorce, a clean break would be preferable from your point of view. (I would think) but this depends on the needs and the prospects of both parties.

LittleJohn

ValHaller wrote: »

More questions arising.

• Who owns the property and in what capacity?
• When you say 'no written agreement', what is that for - the partnership, the allocation of the property to the business, the drawings or what?

Basically the exact basis of ownership needs to be sorted out in order to sort out how assets may be distributed.

I own 50% as a tenant in common, my deceased partner the other 50%.

No formal partnership agreement. WE both put in equal amounts of cash a very long time ago.

The property is just let out, no goodwill to speak of, and I do not want to have anybody else involved in this so I would be keen to buy out the other person.

If I did have a new partner the propety does not run by itself so I would be inclined to charge for my time in running the business, I do not see her wanting to retain any interest. She will be just taking the money...

John_Pierpoint

So your partnership "business" just consists of letting out a property ?

LittleJohn

Yes, it consists of ten self contained flats in one large house.

ValHaller

LittleJohn wrote: »

Can anybody give me a rough idea of how this is likely to be solved?

It is as simple as negotiating a price, getting a mortgage and getting a solicitor to buy the share off the other beneficiary.

You need to take account of the accruing income and divide it between yourself and the estate until you have sorted probate and transfers from the estate to beneficiaries, before dividing it again as part of distribution of the estate.

LittleJohn

ValHaller wrote: »

It is as simple as ...

Excellent thank you.