Complicated Probate case... sigh

[Deleted User]

Sea_Shell wrote: »

Also she should be aware that in signing away her inheritance, could result in her losing the ability to claim any means tested benefits. Is she on any, or likely to be in the future?

Who my sister? You mean?

Sea_Shell

Adams18 wrote: »

Who my sister? You mean?

Yes. She would be depriving herself of a potential asset.

getmore4less

Can we assume the partner attempting the claim is not the mother of the 1/2 sister.

[Deleted User]

Sea_Shell wrote: »

Yes. She would be depriving herself of a potential asset.

There was only a few thousand in fathers account, and she told me she has no interest in being involved with the property.

She earns extremely well, and has her own place in Oxfordshire, worth a million. She is a workaholic.

[Deleted User]

getmore4less wrote: »

Can we assume the partner attempting the claim is not the mother of the 1/2 sister.

Correct assumption, she was from my dads very first marriage. The Partner had no children at all.

[Deleted User]

Tom99 wrote: »

Your solicitor is not an expert on valuation matters.
If you use 25% of market value you are saying your fathers interest is worth £125k.
But that's not the case since your mother has an effective life interest in that 25% of the property she does not own. You therefore have to apply a discount factor to the £125k which is what I have suggested above.

Okay, you are right he is not an expert. I'll have to read online about this deferment thing I cannot wrap my head around it, I am just understanding life interests right now...

Thank you, I'll research.

Tom99

Adams18 wrote: »

Many thanks for your thought out response and efforts. I am still not understanding the deferment stance, the losing 5% a year? Why is the case? Isn't it always 25% of the value of the house at time of sale, after a mortgage has been redeemed and IF the mortgage still exists at that time?

The mortgage/debt is due to mature soon... so If I do probate before that time, and then it gets cleared the probate would reflect a debt that doesnt exist anymore.

I didn't do a RICS, 6 Months after he passed I brought in an estate agent (foxtons) who valued the house on market value/movements. "Having fully considrerd the local market activity and taken into account all aspects of your property, including its general condition, and the location etc.."

Your probate application will contain values and debts at the time of death not what the may have become since.
Re the deferment thing, say my house was worth £125k and I offered to sell it to you with vacant possession. You may well offer me £125k.
Now say I will sell you my house but I am going to live in it for the rest of my life, you can have vacant possession when I die and I am age 54.
Would you still offer me £125k? No of course not, given my life expectancy you will not get possession of the house for say 30yrs.
The further away possession is the less you will pay.
My example assumes you would pay 5% less for every year you have to wait.
Hence £125k / (1.05)^30
It is only an example of how you might go about arriving at a date of death value.

getmore4less

Sea_Shell wrote: »

If you have a half-sister on your Dad's side, she is entitled too.

To properly administer his estate, you HAVE to account for this. IF she chooses not to receive her inheritance, she will need to sign a deed of variation stating this, and pass her share to you.

Do not ignore this element!!

DOV is one option, a disclaimer is also an option.

A_Frayed_Knot

Sorry, haven't read it all, since there is two threads going, but one thought keeps coming to mind.

Since your father had no input for the last 25 years, then would his "share" not be valued as in 25 years ago?

You say you and your mother has maintained and paid upkeep, maintenance, mortgage etc etc for the last 25 years, you both would have bank statements and proof of this, so hopefully would account for something.

Worth a thought.

theoretica

It feels to me like you are muddling various things together which would be clearer separately.

1) sorting probate
2) whether you wish to own part of your mother's house and what that does to your relationships!


It seems to me your father did not own 25% of the house when he died - he owned about 21%, the bank 16% and your mother the rest. If you pay off the mortgage with your own money, it is worth thinking about getting it documented that you own that 16%. Sorting probate properly will stop his partner having any claim to the £20k you pay off his 25%.


I think this is still the current table for valuing life interest - and by extension the reversionary interest which the partner is seeking.

http://www.legislation.gov.uk/uksi/2008/3162/pdfs/uksi_20083162_en.pdf
If your mother is 54 now, she was 52 at date of death - so the value of the life interest is 42.2% of the whole, and the reversion value will have been 57.8% of the market value. 57.8% x £105k = £60,690