Splitting inheritance50/50 problem

getmore4less

Are you sure you have the numbers right and it is not actualy around £15k difference.

I have seen this happen before.
eg.
estate worth £340k(yours will be more than this if IHT due)
House needs to be £200k and leave £140k for you to be out by £30k.

a £60k difference which is what some think is the difference/loss when is is only 1/2 that.


Now how long did Sis live in the other place and what were the terms of the occupation in terms of rent and upkeep, there is potential for a claim here which could get verry messy

Which of the properties were mortgaged that can influence things a bit if there was a claim

DandelionPatrol

!!!!!! wrote: »

Not forgetting that on sale the non-tenant would also be liable for CGT

Personally I think you need to abide by the will and realise ALL assets then split the remaining moneys after all debts are paid.

This could be addressed by mortgaging to the sister.

edwink

My personal opinion would be to have both of the houses valued. That would give you and your sister some idea of the figures in question. Because at the moment I think you are both trying to estimate their value. That would give you both a starting point for negotiations between the 2 of you.


You could always make an appointment to see a Citizens advice Bureau advisor. Many of their volunteers are actual solicitors. If you do decide to go down that route when you phone and make an appointment you need to tell them briefly what it is about so you get an appointment with the correct advisor that will be able to give you some good advice. Having some figures from the value of the houses will help the advisor give better advice to you and your sister. The CAB advice is free!!


By the sound of things the last thing you need is to fall out with your sister and other family members. So both of you visiting the CAB may be able to tell you where you both stand at this time.


I hope that is of some help!!

BobQ

OP,

Just because your sister wants to move into the smaller property does not mean she is entitled to do so. If she can buy another property within the value of her inheritance then she should do so.

All of the above (about shares) is perfectly valid and if you are wealthy enough to give/loan her some money to pay for it fair enough. It will lead to an easier life.

But what your sister is trying to do is to pressurise you into giving her or loaning her money so she can afford to live above her means. Now I can see that making her homeless would cause you some distress, but if with her inheritance she can afford to buy another house why not pressure her into doing that? Alternatively, loan her the money, secured on the property and make her pay a realistic rate of interest.

LannieDuck

Can she really not afford to buy a property with (her share of) the proceeds of the house?? Perhaps she just needs to set her sights a little lower - a flat instead of a house, or in a slightly different area?

Why on earth should you subsidise her by 30k?

TBagpuss

How much are the properties worth? £30K is a very small amount for a mortgage and with a high toan to value she nand hr husband may be more able to get a mortgag ethan they think.

another option might be to give her a deadline - e.g. agree to delay selling the property for 6 months on the basis that she is responsible for the costs of insuring it etc during that period, and on the basis that if she can find a way to buy it from the estate within that time period she can do so, but if not, then it needs to be sold.

That would allow time for her or her partner to take steps to improve their chance of getting a mortgage, by looking for full time work, reducing any other debt etc, and also gives them time to look around for alternative accommodation of they cannot afford to buy your mum's house.

Do take advice first however about the implicatins of allowing them to live there in the short term.

As another poster suggested, another option would be for you to have a charge (mortgage) over the property to secure £30K plus interest, on the basis that this is paid off month by month. You could set the term of the mortgage which would mean that you would be entitled to any balance at a set date in the future - and would also entitle you to force a sale if they got into arrears.

You would be in the same position as any other mortgage lender with the protection that provides, and if and when your sister was able to get a mortgage she could pay you off. You might want the term of your mortgage to her to be relatively short - consider when it would be reasonable for her to take on full time work, given the ages of any children, for instance.