Inherited house and siblings

rainbowcupcake

Hi all,

Just looking for some advice, as I haven't got a clue what to do!

My Dad recently passed away and he left me and my two siblings his house, which is worth approximately £120,000. I currently live in the house with my sister.

My sister would like to buy me and my brothers share. What would be the best plan of action? I am looking to buy a property with my partner with the money I receive.

Thanks in advance

Pixie5740

rainbowcupcake wrote: »

Hi all,

Just looking for some advice, as I haven't got a clue what to do!

My Dad recently passed away and he left me and my two siblings his house, which is worth approximately £120,000. I currently live in the house with my sister.

My sister would like to buy me and my brothers share. What would be the best plan of action? I am looking to buy a property with my partner with the money I receive.

Thanks in advance

Your sister gets a mortgage and/or uses savings to buy your share and your brother's share.

rainbowcupcake

Pixie5740 wrote: »

Your sister gets a mortgage and/or uses savings to buy your share and your brother's share.

Thanks for your reply Not sure if they'll be able to get one, but I'll try and get them to see a broker.

Pixie5740

Is the house the only thing your father left to you in his estate?

Thrugelmir

rainbowcupcake wrote: »

Thanks for your reply Not sure if they'll be able to get one, but I'll try and get them to see a broker.

Then your sister may need to lower her expectations.

Bossypants

rainbowcupcake wrote: »

Thanks for your reply Not sure if they'll be able to get one, but I'll try and get them to see a broker.

She must have given that some kind of thought, no? She does realise that in order to buy 2/3rds of a £120k house, she's going to need to come up with £80k somehow?

unforeseen

Is your brother charging both you and your sister rent at the moment? He is entitled to. 1/3 of the market rate would be fair.

G_M

1) you and/or your brother could lend her the moey to buy your share(s).No money need change hands - the property would be transferred to her and she'd then owe you the value of your shares, to be repaid at a specifed time in the future. Or in installments. Or whatever. Get it documented!

2) she pays you (each) the value of your share

3) if there are other assetts in the Estate (eg dad had some cash, investments, a yacht that is being sold etc), and assuming these are also inherited by your all equally, then her share of these could be put towards her purchase from you

4) she could boroow the money to pay you elsewhere (mortgage, friends etc)

Finally-

5) who is /are the Executors of dad's Estate?
6) And is the property still in dad's name?
7)Or transferred into the Executor's name(s)?
8) Or transfered into the names of the 3 of you?

unforeseen

I've always wondered whats in people's heads when they write a will leaving their house to more than one beneficiary.

It normally ends up a disaster because one beneficiary wants the money (and not the responsibility or ensuing CGT bill) which is fair enough but the others struggle to raise the money to do this.


Why don't people put a simple line in that all major assets are to be liquidated and money split?

Keeping a family home is a nice sentiment but not really practical in most cases.

rainbowcupcake

Pixie5740 wrote: »

Is the house the only thing your father left to you in his estate?

Yes, it was.

Thrugelmir wrote: »

Then your sister may need to lower her expectations.

She has been struggling a bit financially, but she is actively trying to get her debts etc sorted. Originally we all wanted to sell it and split the money between us, but we would like to investigate this avenue before going ahead.

Bossypants wrote: »

She must have given that some kind of thought, no? She does realise that in order to buy 2/3rds of a £120k house, she's going to need to come up with £80k somehow?

The option of buying has never ever crossed her mind, so she doesn't really understand how it works. And I just wanted some clarification before the expectations got too big!

G_M wrote: »

Finally-

5) who is /are the Executors of dad's Estate?
6) And is the property still in dad's name?
7)Or transferred into the Executor's name(s)?
8) Or transfered into the names of the 3 of you?

Thanks G_M. Definately think her looking in to a mortgage would be the best for us. The property has been transferred to us. I know I said recently, but it has been about two years.

bouicca21

unforeseen wrote: »

I've always wondered whats in people's heads when they write a will leaving their house to more than one beneficiary.

It normally ends up a disaster because one beneficiary wants the money (and not the responsibility or ensuing CGT bill) which is fair enough but the others struggle to raise the money to do this.


Why don't people put a simple line in that all major assets are to be liquidated and money split?

Keeping a family home is a nice sentiment but not really practical in most cases.

I specifically asked my children whether I should have that simple line in my will and explained why. They both said no, so if they fall out over their inheritance they have only themselves to blame!