Settlement dilema

JillyT

My sister and I inherited two properties when our dad passed away earlier this year. A 3 bed semi detatched which I live in with my husband, caring for dad for the last 2.5yrs of his life and a 2 bed terrace which my sisters two aldult kids live in and who paid rent to dad.
We independently had the two houses valued by three different estate agents for probate – sister did the terraced and I did the semi. The semi valued between 145k and 165k. The terraced valued between 80k and 85k.
We have decided to keep the semi and pay the difference of the two properties to my sister. This is where we disagree on the amount.
We have taken the average price of 150k for the semi and 80k for the terraced = 230K
230k divided by 2 = 115k each
115k less 80k for terrace = 35k
Less 10k gift from dad to my sister = 25k
Dad gave my sister 10k to help her buy her own house a couple of years ago and said that I would get my 10k when I needed it. My sister was not happy that we were living with dad rent free but we were paying all the bills, dad didn’t pay for anything and we were also caring for dad especially in the last year when he became weaker with his cancer and total 24/7 care for last few months of his life.
Sister says she and I agreed she would have the 10k in lieu of us living there rent free – I don’t recall this conversation at all and in fact, had dad not told me about this 10k, I would not have known about it.
She also doesn’t agree that the terraced is worth 80k – she thinks its more like 70k and is getting two more valuations, which I had no objection to.
My question is, have I divided the amount due to my sister fairly or should I just forget about the 10k?

Comms69

Well the avg is 155k, not 150k for the semi.


The terraced is 82.5k avg - ie middle value.


So the split is 118.75 - so 36.25k difference.


Not sure if the gift is relevant, how long ago was it?


However, who are the executors? Has probate been granted?

silvercar

Did Dad leave a will?

At the end of the day you have to decide whether the sums involve are worth more than your relationship with your sister.

JGB1955

What valuations went on the probate form? Presumably you used a RICS surveyor (not an estate agent) to do the independent valuations? I would use the agreed probate values. Your fathers executors have to follow the direction of his will. Unless the beneficiaries can agree a deed of variation, I would forget the £10,000 and get on with your life.

diego_94

This happens too much with estates... All comes down to greed.

just sell both houses, and split estate evenly as per the will. You will end up falling out with your sister over this, too much of 'dad promised me this, you said this and that, you agreeed to this.'

Just grow up and do things properly.

AnotherJoe

JillyT wrote: »

My sister and I inherited two properties when our dad passed away earlier this year. A 3 bed semi detatched which I live in with my husband,caring for dad for the last 2.5yrs of his life and a 2 bed terrace which my sisters two aldult kids live in and who paid rent to dad.
We independently had the two houses valued by three different estate agents for probate – sister did the terraced and I did the semi. The semi valued between 145k and 165k. The terraced valued between 80k and 85k.
We have decided to keep the semi and pay the difference of the two properties to my sister. This is where we disagree on the amount.
We have taken the average price of 150k for the semi and 80k for the terraced = 230K
230k divided by 2 = 115k each
115k less 80k for terrace = 35k
Less 10k gift from dad to my sister = 25k
Dad gave my sister 10k to help her buy her own house a couple of years ago and said that I would get my 10k when I needed it. My sister was not happy that we were living with dad rent free but we were paying all the bills, dad didn’t pay for anything and we were also caring for dad especially in the last year when he became weaker with his cancer and total 24/7 care for last few months of his life.
Sister says she and I agreed she would have the 10k in lieu of us living there rent free – I don’t recall this conversation at all and in fact, had dad not told me about this 10k, I would not have known about it.
She also doesn’t agree that the terraced is worth 80k – she thinks its more like 70k and is getting two more valuations, which I had no objection to.
My question is, have I divided the amount due to my sister fairly or should I just forget about the 10k?

The valuation should be for when your dad died, not now. House prices have probably fallen since then.
Indeed it should be the valuation that was put on the IHT form.

Plus, if the terrace is revalued then so should all the houses be , they should all be at the same point in time.
IMO this would be better placed on the deaths and probate forum its not really about house prices, can a mod move it?
https://forums.moneysavingexpert.com/forumdisplay.php?f=217

JillyT

I was being nice saying the semi was 150k..
the 10k gift was 2 years ago
we are both the executors and yes we have probate
Yes dad left a will to split between the two of us
we used an estate agent for probate values
we have already spent a few thousand renovating the semi so intend to keep it as my sister intends to keep the terraced
we have agreed not to fall out
So I forget the 10k and sister should not bother with new valuations then?
so how much should we give her?

kazwookie

How much do YOU think you should give your sister to be fair?


How much does your sister want?


Work these out, then sit and talk with your sister.

davidmcn

Comms69 wrote: »

Well the avg is 155k, not 150k for the semi.

The terraced is 82.5k avg - ie middle value.

"Average" usually means the mean, rather than median - and we can't work out the mean from the data provided, so let's assume the OP has the correct figures.

DE_612183

If your Dad gifted your sister £10 to buy a house why was she then living in Dads other house? Not sure if that point is important or not?

If you take her valuation £70 and your mid-point £155 - thats 225, so 112.5 less the 70 = 42.5k

This would seem the amount your sister wants you to pay.

If you can afford it then fine, it may be worth setting out the figures that you think and she thinks ( don't include the £10k ) and see if meeting in the middle is better.

As others have said - not worth falling out over.

Slithery

JillyT wrote: »

We independently had the two houses valued by three different estate agents for probate

Not good enough. You need to employ a RICS certified valuer.