Dealing with mum's will - no cash only property

edited 30 November -1 at 1:00AM in Deaths, Funerals & Probate
18 replies 1.9K views
2»

Replies

  • LizWLizW Forumite
    30 Posts
    Ninth Anniversary 10 Posts Combo Breaker
    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.....
  • getmore4lessgetmore4less Forumite
    44.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    Sound like it may be time to talk to the kids
  • RASRAS Forumite
    29.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper
    ✭✭✭✭✭
    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
    The person who has not made a mistake, has made nothing
  • Keep_pedallingKeep_pedalling Forumite
    9.9K Posts
    Sixth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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.
  • getmore4lessgetmore4less Forumite
    44.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    ✭✭✭✭✭
    DOV is a tax mitigation device and not needed if the kids agree to delay themselves getting paid.
  • theoreticatheoretica Forumite
    8.8K Posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    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.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • 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?
    Misc debts - £5,000 | Student loan - £9,000 | Mortgage - £180,000
    Goals for 2015: Sell house & downsize + Increase income + Get debt Free :shocked: {Diary}
    <3DS born 05/05/2009 & DS2 born 12/02/2011 <3
    Smoke free since 01/01/2010
    Paid off credit card 04/04/2011
  • G6JNSG6JNS Forumite
    563 Posts
    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.
This discussion has been closed.
Latest News and Guides

Best student bank accounts 2021/22

Incl. free 0% overdrafts and railcards

MSE Guide

Next 50% off sale rumour

Here's what we've found...

MSE Deals