Wills and complex property situation

tigerhundred

Am trying to work out what (if indeed anything) to do regarding writing a will and would very much appreciate others' practical thoughts, as my situation is far from simple.

Single, no children, with a short while before these questions becomes academic.

A number of rental properties in the UK, most mortgaged (interest only, less than ten years remaining) but a couple are mortgage free. Overall net value negative.

Mortgage free apartment in France and remaining (x3) pension funds and savings in both countries (probably) do not bring overall asset value into positive territory. So, sensible siblings and their offspring would understandably run a mile from an insolvent estate.

While I am alive things tick along perfectly well in modest income profit dependent on voids/arrears/repairs etc, but obviously on my death the mortgages would require redeeming and that would present someone with problems.

In practical terms, does anyone know what would actually happen? All rental properties are fully managed by agents but at some point things must surely grind to a halt. And overseas interests... muddies the waters even further with French law of inheritance very different to UK. It would likely be a case of the property going back to the commune, even though there's no mortgage, if siblings/offspring refused to get involved.

Tis an interesting conundrum, and one which I would be most appreciative of anyone's wisdom.

Yorkshireman99

tigerhundred wrote: »

Am trying to work out what (if indeed anything) to do regarding writing a will and would very much appreciate others' practical thoughts, as my situation is far from simple.

Single, no children, with a short while before these questions becomes academic.

A number of rental properties in the UK, most mortgaged (interest only, less than ten years remaining) but a couple are mortgage free. Overall net value negative.

Mortgage free apartment in France and remaining (x3) pension funds and savings in both countries (probably) do not bring overall asset value into positive territory. So, sensible siblings and their offspring would understandably run a mile from an insolvent estate.

While I am alive things tick along perfectly well in modest income profit dependent on voids/arrears/repairs etc, but obviously on my death the mortgages would require redeeming and that would present someone with problems.

In practical terms, does anyone know what would actually happen? All rental properties are fully managed by agents but at some point things must surely grind to a halt. And overseas interests... muddies the waters even further with French law of inheritance very different to UK. It would likely be a case of the property going back to the commune, even though there's no mortgage, if siblings/offspring refused to get involved.

Tis an interesting conundrum, and one which I would be most appreciative of anyone's wisdom.

I am sorry to hear of you predicament. You need to speak to a solicitor that does business in the UK and France and get wills done for both countries. Google will produce a number that do.

tigerhundred

Thanks for your reply - no worries, am perfectly sanguine and practical.

I was hoping that someone on here may have had (even anecdotal) experience or knowledge of similar as I'm pretty sure a solicitor will charge me considerably for something which will almost certainly be useless anyhow.

My instinct (which may be wrong - am perfectly prepared to accept that to be the case) has been telling me to take the positive decision under these circumstances of doing nothing, and I suppose I am looking for sound reasons to do otherwise.

Yorkshireman99

tigerhundred wrote: »

Thanks for your reply - no worries, am perfectly sanguine and practical.

I was hoping that someone on here may have had (even anecdotal) experience or knowledge of similar as I'm pretty sure a solicitor will charge me considerably for something which will almost certainly be useless anyhow.

My instinct (which may be wrong - am perfectly prepared to accept that to be the case) has been telling me to take the positive decision under these circumstances of doing nothing, and I suppose I am looking for sound reasons to do otherwise.

Re-reading what you said perhaps you are right to do nothing if you have no heirs to suffer the inconvenience of it all. Sad since you have obviously worked hard to make a go of things.

Savvy_Sue

Even if you are right to do nothing, it might be worth taking advice ...

Sometimes pensions pass outside the estate, so definitely worth making sure they are paid to the people you'd want them to go to.

getmore4less

With that amount of assets a professional executor may be interested they get their cut from the free assets.
An insolvency administration order may go ahead if a creditor or the siblings(beneficiaries) ask.

tigerhundred

Value of the remaining pensions is very low but if they can be ring-fenced, that's something I'll follow up - thanks. Competent executor's not the problem, absence of net assets is. (especially if pensions are removed!)

nom_de_plume

One question springs to mind and that is how do assets owned in France stand up against UK debts? I don't know the answer but wonder if that area of your finances would be considered as independent of anything in the UK.

Also have you discussed your affairs with your likely beneficiaries to give them a head start on how best to proceed?

tigerhundred

That's a massive grey area to be sure! Theoretically - being in Europe - means that all assets are lumped together and assessed collectively. But no one can give me an idea of what actually happens in reality.

Which is why I'm asking on this very well represented forum really... to see if anyone has personal experience or knowledge.

Another annoyance in France is that what happens in reality is often very area specific, i.e. what applies somewhere may not apply everywhere.

Have broached the subject minimally with those potentially affected, but as I flatly refuse to land them with a massive problem for no return, it's a bit of a moot point.

Yorkshireman99

Please could you explain how the rules differ within France? AFAIK the rules are consistent but if there are differences it would be interesting to know more. TIA

tigerhundred

Officially you are correct. Unofficially, The Rules are subjectively interpreted by local civil servants whose word is pretty well final unless you want a battle of wills. That's a fight you're unlikely to win!