Advice on dealing with estate

Tom99

[FONT=Verdana, sans-serif]Going back to your original question I would have though a document which sets out all the relevant facts stating that the beneficiary is giving up their share of the property inherited from the deceased in return for a payment of £xyz from my sister/aunt (or whatever).[/FONT]
[FONT=Verdana, sans-serif]Full names and addresses for everyone and signed by both beneficiary and you and if you like to make it more formal, a witness.[/FONT]

Chez2402

I had no issue changing the house into my name, it was very straight forward so I thought I was doing the right thing as I wish to live there with my children. I really wanted to avoid going through a solicitor as it can be so expensive. If I manage to get a valiation done and then draw up an agreement for each of the other beneficiaries to sign agreeing to money for their share would this be legally enough? I have also just been informed that one of the beneficiarys may be only 14 (child my late brother had from an affair and out of marriage) is she actually entitled to anything? And if so how would that work? I'm really not trying to do anyone out of there entitlement, I just want this all sorted as we have a baby on the way and are keen to move from rented property.

Yorkshireman99

Chez2402 wrote: »

I had no issue changing the house into my name, it was very straight forward so I thought I was doing the right thing as I wish to live there with my children. I really wanted to avoid going through a solicitor as it can be so expensive. If I manage to get a valiation done and then draw up an agreement for each of the other beneficiaries to sign agreeing to money for their share would this be legally enough? I have also just been informed that one of the beneficiarys may be only 14 (child my late brother had from an affair and out of marriage) is she actually entitled to anything? And if so how would that work? I'm really not trying to do anyone out of there entitlement, I just want this all sorted as we have a baby on the way and are keen to move from rented property.

That child would be entitled to a share like the others. They cannot agree to a value as they are a minor. Her guardian would be responsible for dealing with it. It makes it even more important to get the value at DOD established by a RICS valuation. Technicly it is up to the administartors to distribute the estate and the beneficiaries have no say in the process. There is no legal reason why they should have to agree to it particularly if the value has been properly established. The responsibility is solely the administrators who are personally liable if they get it wrong. If the beneficiaries are unhappy with the value then ultimately they can go to court but hopefully that costly process can be avoided.

troubleinparadise

Chez2402 wrote: »

I had no issue changing the house into my name, it was very straight forward so I thought I was doing the right thing as I wish to live there with my children. I really wanted to avoid going through a solicitor as it can be so expensive. If I manage to get a valiation done and then draw up an agreement for each of the other beneficiaries to sign agreeing to money for their share would this be legally enough? I have also just been informed that one of the beneficiarys may be only 14 (child my late brother had from an affair and out of marriage) is she actually entitled to anything? And if so how would that work? I'm really not trying to do anyone out of there entitlement, I just want this all sorted as we have a baby on the way and are keen to move from rented property.

As administrator, your first duty is to ensure that the beneficiaries receive what they are entitled to; your personal interests or desires come second.

A solicitor’s advice will cost a fraction of the estate value, but could save much more if one of the beneficiaries questions your actions, or in family fall-out caused by mistrust or resentment.

The minor beneficiary should certainly receive legal advice through their guardian, and it would be wise for the other beneficiaries to do so too, to ensure that they fully understand what is being proposed before they sign anything.

None of this is difficult nor very expensive, but you must be careful not to act in haste in your personal desire to move into the house which could come back to bite you later.


(Sorry YM99, for repetition in cross-posting!)

Yorkshireman99

troubleinparadise wrote: »

As administrator, your first duty is to ensure that the beneficiaries receive what they are entitled to; your personal interests or desires come second.

A solicitor’s advice will cost a fraction of the estate value, but could save much more if one of the beneficiaries questions your actions, or in family fall-out caused by mistrust or resentment.

The minor beneficiary should certainly receive legal advice through their guardian, and it would be wise for the other beneficiaries to do so too, to ensure that they fully understand what is being proposed before they sign anything.

None of this is difficult nor very expensive, but you must be careful not to act in haste in your personal desire to move into the house which could come back to bite you later.


(Sorry YM99, for repetition in cross-posting!)

No problem. The point is well made

Flugelhorn

Chez2402 wrote: »

I had no issue changing the house into my name, it was very straight forward so I thought I was doing the right thing as I wish to live there with my children. I really wanted to avoid going through a solicitor as it can be so expensive. If I manage to get a valiation done and then draw up an agreement for each of the other beneficiaries to sign agreeing to money for their share would this be legally enough? I have also just been informed that one of the beneficiarys may be only 14 (child my late brother had from an affair and out of marriage) is she actually entitled to anything? And if so how would that work? I'm really not trying to do anyone out of there entitlement, I just want this all sorted as we have a baby on the way and are keen to move from rented property.

Have you advertised the estate somehow? Just would be wary that there may be other children you do not know about who may claim at a later date

Mojisola

Chez2402 wrote: »

My Mum passed away without leaving a will.

Myself and my brother applied for a grant of representation which we got.

You and your brother will be personally financially liable if you don't do things properly and the distribution is challenged.

That could cost a lot more than getting advice from a solicitor now.

TcpnT

Just because you were able to submit the assent forms and put the property into your own name does no mean that that was the correct legal process. You're playing a dangerous game and potentially opening yourself up to future liabilities by acting without proper knowledge or legal advice.

This quote from a COOP legal services website explains that Assent was not correct in your case. You are effectively purchasing 2/3 of the house from the estate with the associated tax and tax implications.

An Assent is different from a Transfer or Conveyance because you can only Assent property from the Estate of someone who is deceased.

The Assent will also be for no value. So if a Beneficiary is paying money to the Estate so that he/she can take ownership, this is a purchase and not an Assent. An Assent wouldn’t be appropriate if money is being paid because an Assent is essentially a gift from the Estate, and you can’t gift something in return for money.

This situation may occur where there are several beneficiaries and one wants the whole of the property. If so, the beneficiaries may come to an agreement where one pays the others for their shares based on the value of the property so that they can become the sole owner. In these cases a Transfer would occur so that the money paid can be accounted for in the document, in the Estate accounts and also at the Land Registry, as there may be tax implications.

As other have stated, to an impartial observer, it may well appear that you are putting your own interests before the administration of the estate and potentially both avoiding tax and undervaluing the property to your own advantage and the detriment of the beneficiaries.

badmemory

As this isn't a second home & valued under £125k would there be any stamp duty?

Chez2402

I'm really stuck with what to do next as it's already in my name now as my brother told me I was doing the right thing?! Will I just be able to give the others their share in the form of money once I have it? And will the house legally be mine? I'm really confused?