Complicated property inheretance question

regency_man

I am exector for my mothers will (she's still alive) but recently she's making some really big decisions without consulting any of the rest of the family.

The latest one is causing me particular chargrin, she has a parcel of land that has had a static caravan on it for many years, sitting emtpy since the old tenant died many years ago. There is a reasonable chance of getting planning for a house on it and in the will the land is to be given to the 8 grandchildren jointly to decide what to do with.

Recently however one of the grandchildren has convinced her to buy a new static caravan and erect it on the site with the idea of renting it out as a holiday let which he would manage. This was discussed and nobody had an issue with it as he would be doing the work and she would remain owner of the land and property (and caravan). However it came to light last week that her and the grandchild in question had come to an second agreement after he lost his job, in that she would rent the caravan solely to him, for him and his girlfriend to live in permanently.

As a result he is doing the work of clearing the site and preparing the ground 'for free' and, as you might expect, doing everything he can to get this all done ASAP. When we spoke to her about it, she is not planning on even drawing up a tennancy agreement as it is 'all in the family'.

Could this in anyway impact the inheretance arrangements?

The biggest worry is that if she passes away while the grandchild is still living there, he would become both the sitting tenant and joint-landlord. Wouldn't this potentially block the other grandchildren from being able to do ANYTHING with the land as he could remain in place as sitting tenant and block any decision to evict in his capacity as joint-landlord? And as there is no rent agreement in place, he could even stop paying rent and then further block any attempts to implement a new tennancy arrangement?

The biggest problem is that mother has absolutely no desire to enter into disucsion on this with anyone, to her she's doing her grandchild in need a temporary favour and everything everyone else says is sour grapes. She firmly beleives there would be no issue and everything will be fairly distributed when she passes on.

As executor is there even anything I can do in this situation?

da_rule

Is this parcel of land attached in anyway to her land? And is it registered on the deed/title document as a separate 'property' or is it part of your mums?

Some sort of written agreement may help matters, even if it's just agreement that they will move out within a set time of the death of your mother etc.

Part of me thinks though that it isn't really a massive issue. If the caravan land and the other land is all one 'property' then why is this any different to him moving back in with your mum (i.e. into her house with her)? The only difference I can see is that the separation of the caravan is likely to give rise to a tenancy rather than a licence.

If, once the property passes to the grandchildren and a majority want to sell it then they can apply to the court to force the sale (this is expensive). Again, this is no different to if he just didn't want to sell the property, regardless of his living arrangements.

Mossfarr

You could ask her to put the details of her 'agreement' in writing. This would provide evidence that the arrangement was only ever intended to be a temporary measure, should you need it in the future.
I don't think the Grandson could claim to be 'joint landlord' as the title to the land would remain in your Mothers name only.
I think the other seven beneficiaries would be able to force the sale.
At the end of the day its her land and she is perfectly entitled to do what she wants with it.

csgohan4

Does she have capacity to make that decision? Has she appointed a power of attorney for finances? If not why not?

da_rule

csgohan4 wrote: »

Does she have capacity to make that decision? Has she appointed a power of attorney for finances? If not why not?

I'm happy to be corrected, but I don't see how allowing someone to move onto your property could be blocked by someone, even with a Property and Financial Affairs Lasting Power of Attorney. She is not disposing of any property and is not entering into any sort of agreement (which I think is one of the OP's gripes).

davidmcn

regency_man wrote: »

As executor is there even anything I can do in this situation?

You're not an executor until your mother dies. What she does with her property until then is up to her.

G_M

Is she of sound mind? Or has she got dementia, or some other condition that means she is legally unable to make decisions for herself?

If she is of sound mind, she can do as she wishes (just as you can do with your own property anything you wish!).

As David says, you are not (yet) her Executer. You are simply named as such in her will. Between now and her death, she may write a new will, and /or appoint new Executers.

As named Executer, it is NOT your duty, or business, to interfere with her lifetime decisions. Though as her son you may wish to discuss family matters with her and/or other family members.

Once you are her Executer (ie on her death) it will be your duty to manage her Estate, pay her Inheritance Tax, and distribute what's left (money, land etc) in accordance with whatever her will says at that time.

If she leaves the caravan to this grandchild in her will, or creates a valid lease, or lifetime benefit in his name, then you will have to honour it.

If she makes an informal agreement that he can stay there, you will have to include the land and caravan in the rest of the Estate and distribute it acording to what the will says. He might challange this, claiming he has a lifetime interest for example, but he would have o prove this (unless you accept his claim).

regency_man

To clarify on people's questions, the land is seperate and on a different title to her residence, it's a large caravan with mains services so I'm fairly certain the tenant would qualify for tenancy protections as it is a dwelling.

She is of sound mind but short fuse and gets tired quickly, any conversation which starts to talk about law or complex arrangements is immediately shut down, the world is very black and white for her. It's her caravan, she's renting it out to help the grandchild out and when she dies all the grandchildren will get a fair share.

I understand that I have no role as executor until her death but other members in the family look to me as the source of knowledge on this.

Essentially I need to understand to be able to explain to her in fairly layman terms what will happen if she continues down the course she is proposing. Or alternatively to explain to my siblings that there is no risk to their children's share of the land or what they can do with it.

p00hsticks

regency_man wrote: »

in the will the land is to be given to the 8 grandchildren jointly to decide what to do with.

This sounds like an absolute nightmare of a clause ! Getting eight people to jointly agree would I suspect be well nigh impossible, especially the rumblings that appear to be starting even when she's still alive.

Is it worth suggesting to your mother that instead she says in the will that on her death the land be sold and the proceeeds shared between the eight gramdchildren ? That would take the need for a decision out of the grandchildrens hands and if any of them wanted the land then they would simply have to offer to purchase it.

Thrugelmir

regency_man wrote: »

Essentially I need to understand to be able to explain to her in fairly layman terms what will happen if she continues down the course she is proposing. Or alternatively to explain to my siblings that there is no risk to their children's share of the land or what they can do with it.

As your mother is still alive. Why do do you think that you have the right to interfere in her affairs and decisions? Seems somewhat preemptive to be concerned with inheritance matters. Given that your mother could yet change her mind.

G_M

p00hsticks wrote: »

Is it worth suggesting to your mother that instead she says in the will that on her death the land be sold and the proceeeds shared between the eight gramdchildren ? That would take the need for a decision out of the grandchildrens hands and if any of them wanted the land then they would simply have to offer to purchase it.

Bequeathing land has other disadvantages too. What if there is insufficient loose cash to pay the Inhertance Tax? And the land has to be sold?

Far simpler to either make fixed cash bequests (safely within the Estate's abilities to pay) or divide 'the residue' of the estate amongst named peope, in whatever % is wanted.

Did she get proper advice when drawing up the will?