Dealing with mum's will - no cash only property

LizW

So really the only way to solve this is to sell the house, therefore making my sister lose her home as there will be insufficient funds left for her to buy another house after selling costs, debts and legacies. I'm sure that wouldn't have been my mum's intention when she made her will 17 years ago but if that is what the law dictates.....

getmore4less

Sound like it may be time to talk to the kids

RAS

getmore4less wrote: »

Sound like it may be time to talk to the kids

One option is a deed of variation (DOV). All beneficaries have to agree to it and it has to be done within 2 years of the death.

The kids could agree to:

forego their inheritance
or to delay the receipt of this for a number of years
or to have a charge put on the house for a percentage of the value now to be released when your sister has paid the inheritance

Lots of options

Keep_pedalling

If you can find any correspondence of your mother's relating to these loans then your niece still owes the estate the money. If that is more than the amount that is gifted to her, then you have an obligation to pursue her for repayment on behalf of her brother, although in reality that could cause a terrible family fall out so an alternative solution may be needed to be looked at.

Not many children would be willing to see their own mother made homeless for the sake of £5000, so I think it is time to have a gentle word with the both of them explaining the situation and asking them to give up their inheritance, which will in effect be put back until her death.

getmore4less

DOV is a tax mitigation device and not needed if the kids agree to delay themselves getting paid.

theoretica

LizW wrote: »

My sister has previously been bankrupt so will be unable to raise funds to pay their inheritance

How long ago was she bankrupt? Especially if it was more than 6 years ago she may still be able to get a secured loan, though maybe at a higher interest rate. It might be worth asking.

chazsucks

Could they make an arrangement so your sister pays a certain amount per month towards what they are owed, until they have received the full amount?

G6JNS

LizW wrote: »

So really the only way to solve this is to sell the house, therefore making my sister lose her home as there will be insufficient funds left for her to buy another house after selling costs, debts and legacies. I'm sure that wouldn't have been my mum's intention when she made her will 17 years ago but if that is what the law dictates.....

You really need to go and get some paid for professional advice. Despite all the well meant weird and wonderful ideas on here they are no substitute for the real thing.