Solicitor is confusing my Aunt and Uncles wills Help

windmill33

I could do with some help my Uncle died in 2011 and the Bungalow they lived in the deeds were in just his name he never left it to my Aunt he left it I  trust to be sold when my  Aunt died and she was to live there until died or went into a home.  He left her some money as well.  My Aunt died last April and her will was for her money to be divided between family.  The first solicitor we saw said it would be easy she wanted me to clear her Bungalow and sort out her personal belongings which I did and the funeral to save my mum her sister doing it.
The Solicitor also said it was easy as it was under the inheritance tax threshold and only needed to go to probate and that would be it.  It was then handed to the Probate solicitor who first of all sent my Uncles will to Probate to put the Bungalow up for sale and I noticed she had only put half the cost of the Bungalow on his forms when I phoned she said well it was a joint property and I said no it wasnt read my Uncles will.
That was sorted now with the winds the fences have blown down on the property and she has said that either my step dad who is going to inherit some of the Bungalow money as my mum has recently died pays for it or it comes out my Aunts money.  He has said he will pay.  But today we had a letter to say they have done a interim payment into our accounts and we wont get the rest until the Bungalow is sold because of the Taxes my Aunt and Uncle will have to pay can anyone explain what taxes she would have to pay her estate was under inheritance tax threshold.  Why are they putting them together.   Is it to save how much tax my uncle would have to pay as some of his is going to a charity.

DUTR

Until the money is in his hand, then it ain't going to no charity.

Savvy_Sue

Whoever instructed each of these solicitors needs to ask questions until they understand what is happening and why. 

Who is named as the executor in your uncle's will? And in your aunt's will?

Who are the beneficiaries of your uncle's will, and did they receive their bequests other than the proceeds of the bungalow, even without his will being sent to probate? And who are the beneficiaries of the trust on the bungalow? And what is the rough value of his estate?

What is the rough value of your aunt's estate? 

Worth noting that:
a) it is not unusual to send the first will to probate, even if the death was some time ago;
b) in this case it is essential because the bungalow cannot be sold without probate on your uncle's will;
c) if your uncle had left everything to his wife, then no inheritance tax would be due, but this isn't what he did, and tax MAY be due as a result;
d) a final distribution will NOT be made until everything is settled, and that may take some time. 

As for paying for the damaged fences, whoever instructs the builder / odd job man to repair them would generally be responsible for paying the bill, although there is an argument for leaving them as they are and allowing the buyer to sort it out. If there's no buyer in sight then from a security point of view it's probably best to sort it now. It seems to me reasonable that those costs should be reimbursed by the estate before final distribution - and I'd say from Uncle's estate, rather than Aunt's, but that's my common sense talking rather than any legal perspective ... 

windmill33

Savvy Sue thank you for your reply.  My Aunt a d Uncle both had the same Solicitors as their Executors.  My Uncle left my Aunt just under £150,000  and the Bungalow deeds were transferred to my Mum my Aunts sister and my Stepdad.  The trust is my Mum,  my Uncles niece and the Solicitor.  The benificaries are my Mum but sadly she died a few weeks ago so it's now my Step dad my Uncles Niece as that's all the immediate family he had and Cancer Research.  The Bungalow is worth £500,000.
So all I can think is they have used my Aunts money to pay my Uncles Inheritance Tax as the Bungalow hasn't sold yet and it's the 6 months since my Aunt died so they will start charging interest on the tax owed now.  My Aunt herself left just over £300,00 so she was below the inheritance tax bracket herself.  That's all I can see it can be.   

xylophone

It seems that your uncle was the sole owner of the property. He also had cash savings/investments.
Who was the executor of your late Uncle's will and who was named as Trustee(s) of the Trust?
The property should have been transferred into the names of the Trustees as they became the legal owners - they held it in trust for the beneficiaries. See links below - it is unclear as to whether this was a full interest in possession or just a right to occupy.
 https://www.sintons.co.uk/personal-family-probate/trust/estate-planning/tax-treatment-interest-possession-trusts/
https://wards.uk.com/online-services/legal-guides/life-interests-rights-occupation/

windmill33

Xylophone my Aunt just had the right to occupy the property until she either died or needed to go into a home a d then it would be sold and the interest was to be used to help.pay for the home.   My Mum and Step Dad was  trustees and the property was in  their name  but only my Mum would benefit from the will.  My Mum and Step Dad were also Executors but sadly my Mum died a few weeks ago so the Solicitors put a Executor in like my Uncle asked and they have taken over my Uncles Estate fully now due to my Step Dads age.

xylophone

Not just a right to occupy then? It appears that in the event that a care home was required, interest on the capital arising from the sale of the property was to be applied for the support of the widow?

hb2

xylophone said:

Not just a right to occupy then? It appears that in the event that a care home was required, interest on the capital arising from the sale of the property was to be applied for the support of the widow?

In which case, beneficiaries would have to wait for their share until the widow also dies?

xylophone

In which case, beneficiaries would have to wait for their share until the widow also dies?

The widow has died - it is just a question of any  IHT arising as a result of the interest in possession.

hb2

xylophone said:

In which case, beneficiaries would have to wait for their share until the widow also dies?

The widow has died - it is just a question of any  IHT arising as a result of the interest in possession.

Thanks, I lost the plot somewhere along the line!