Settlement dilema

Linton

Slithery wrote: »

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

You dont have to employ a RICS certified valuer, an estate agent valuation will be fine in most cases. An advantage of a RICS valuer is that HMRC may be less likely to challenge the valuation. However if the house is one of many similar ones in the same area paying for a valuation seems an unnecessary cost.

Sachs

Linton wrote: »

You dont have to employ a RICS certified valuer, an estate agent valuation will be fine in most cases. An advantage of a RICS valuer is that HMRC may be less likely to challenge the valuation. However if the house is one of many similar ones in the same area paying for a valuation seems an unnecessary cost.

You don't even have to use an estate agent, if you can sort it amicably. However this has the possibility of turning distinctly not amicable in which case getting a load of conflicting estimates from estate agents sounds like a bad idea. That's what they are by the way, estimates not valuations. The estate agent will spend 10 mins on Rightmove before turning up at the house and telling you a figure they think will win your business.

What they want, is one figure per property, provided from a professional, regulated RICS surveyor that they jointly appoint and jointly agree to be bound by.

I would also echo the sentiments that of the £10k isn't expressly mentioned in a will it's probably neither legally enforceable nor worth falling out over.

Comms69

davidmcn wrote: »

"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.

Well the OP cant have the 'correct' figures because there's an argument about how much is owed

diggingdude

where is the rent for the terrace currently going?

JillyT

My sisters two adult children live in the terraced house - not sure if she charges them rent or not

bpj

I think the way you are treating the £10k gift/loan is wrong (you should only remove £5k from her allocation). I think easiest to calculate in three steps as follows:

1. Find the total value of the estate. Using your numbers: £150k (semi) + £80k (terrace) + £10k (gift) = 240k

2. Divide by 2 to find each sister's portion - £120k

3. Divide the assets so that each sister has their portion. E.g. your sister receives £80k (terrace) + £10k (gift) + £30k (cash from you), you receive £150k (semi) - £30k (cash to sister).

n.b. because it fits better with your narrative, it is equivalent to say:

1. £150k (semi) + £80k (terrace) - £10k (gift owed to you) = £220k
2. £110k
3. Your sister get £80k (terrace) + £30k (cash from you), you get £150k (semi) - £30k (cash to sister) - £10k (accounting for gift owed to you not paid)

Whether you agree to change valuations or to waive the gift is up to you and your sister to agree, it would be difficult for anyone else to give advice on that. To get an idea of the difference, using (presumably) her numbers:

1. £150k (semi) + £70k (terrace) = £220k
2. £110k
3. Your sister gets £70k (terrace) plus £40k (cash from you), you get £150k (semi) - £40k (cash to sister).

So perhaps you could agree to split the difference and fork over £35k. Either way, good luck.

AdrianC

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.
...
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.
...
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

Surely it's straightforward?

You've agreed and submitted one set of figures for the single most important valuation - probate and the IHT return. Why are those figures now not good enough for distributing those same assets between you...?

There's a difference of opinion over a £10k gift? Fine. Split the flippin' difference!

Your father's estate amounted to a quarter of a million quid in round numbers. And you're arguing over a couple of grand...?

What would he be saying, if he could see the pair of you falling out over this?

getmore4less

Bpj is right about he £10k gift effect on the numbers.