Proceeds from sale of Fathers house

Lincoo

My Father in law recently moved in with sister in law (paying for an extension to be built for him to live in. ). He then sold family home which was part of a property trust will. The conveyancing solicitor advised us that the house was actually owned by my father in law, my sister in law and my husband equally and proceeds would be paid into three bank accounts. On reading my father in laws will (and late mother in laws) it is clear that the main concern is that my father in law is cared for and has somewhere to live. There was no mention that the money from sale should go into a trust. My father in law,sister in law and husband are the trustees. Basically can they now ‘inherit’ the money from the sale if all three agree? Father in law is well cared for and has substantial means. 

davidmcn

If the property was actually owned by the three people as individuals (and not as trustees) then it sounds like it wasn't part of a trust. Is anybody actually arguing that the property was held in trust?

AdrianC

You need to figure out the reality of the ownership.

If it was owned by the three, was it as Tenants in Common or Joint Tenants? That defines who is owed what money from the sale.

If it was owned by a trust, with the three as trustees, then the three trustees now control the money in trust, and can wind the trust up and disburse the monies as they agree.

Lincoo

The house was originally owned by my father in law and mother in law. They made their wills and when my mother in law died then the house became jointly owned because of the type of Will they made. When my m in l died f in law continued to live in house. We have read and re read the will and even shown it to a solicitor friend (tho his expertise not in wills). It does appear to emphasise (rightly) importance of care for f in law. Proceeds have been paid into private bank accounts. I guess we just want to do the right thing. Next thing to consider is tax. I know it wouldn’t come into inheritance tax bracket.

Lincoo

Nobody is arguing anything thankfully. My husband and sister in law would be beneficiaries anyway. The conveyancing solicitor seemed quite happy to pay the money into private bank accounts. In fact it was her who flagged up that the house was owned jointly! I suppose this would be seen as my husbands and sister in laws inheritance from their late mother.

xylophone

The house was originally owned by my father in law and mother in law. They made their wills and when my mother in law died then the house became jointly owned because of the type of Will they made. 

How's that again?

This does not make sense. In your position, I would consult a solicitor expert in wills and trusts and establish the exact position.

https://content.step.org/step-directory

Lincoo

Have spoken to someone and their conclusion is that the wishes in the Wills have been fulfilled. Proceeds from sale can therefore be split three ways as above. If this was not the case the conveyancing solicitor would not have deposited the money in private bank accounts. 

AdrianC

The wishes in the will were fulfilled when the property was transferred to...

Oh, wait. We still don't know. Was it a trust, or three individuals jointly?

Wills don't somehow linger for decades. EVER. A will might set a trust up, which then lingers for decades, but the will itself doesn't.