Bequeathment

georgiasnan

An aunt left a sum of money to a charity in her will but when she died there was no cash to give to the charity after paying for the debts to the council for her nursing home charges. Part of the debt was set against the Aunts former home but the two main beneficiaries paid for the remainder of the debt out of their own funds and are receiving rent from the property to pay themselves back. The charity is now demanding their money, must the property be sold to pay them? Thanks in advance.

Sea_Shell

What exactly did the will say about beneficiaries.     Were the charity named to receive a specific amount?    Any other specific bequests?   Who were the residual beneficiaries?     Was the house specifically mentioned at all.

Keep_pedalling

It does not sound like the estate is insolvent. Were the main beneficiaries specifically left the house or are they simply residual beneficiaries? If the latter then the legacy to the charity takes priority over their legacy.  

SevenOfNine

So there is still a 'home' in the estate. The debt owed to the nursing home was paid by beneficiaries instead of selling the house to pay it. Presume the house is worth more than the sum total of the nursing home debt - so there is equity remaining in the estate that the beneficiaries are keeping tied up as property? 

wilfred30

Hell hath no fury like a charity scorned!!  Charities are well known for fighting tooth and nail for their bequests so, if the beneficiaries can afford it, they might be better off just paying them.  Alternatively, the house may well need to be sold to satisfy the bequest.

Keep_pedalling

wilfred30 said:

Hell hath no fury like a charity scorned!!  Charities are well known for fighting tooth and nail for their bequests so, if the beneficiaries can afford it, they might be better off just paying them.  Alternatively, the house may well need to be sold to satisfy the bequest.

It not a case of the beneficiaries being able to afford it, it is a case of paying a beneficiary what they are owed. In this case it looks like the executors have made a right pigs ear of dealing with the estate. 

Mojisola

wilfred30 said:

Hell hath no fury like a charity scorned!!  Charities are well known for fighting tooth and nail for their bequests

The charity trustees have a legal duty to collect any money left to the charity they run - the two main beneficiaries wouldn't be happy if the charity wanted to keep more of the estate than they were entitled to but that's what they are doing.

sixtyfoothigh

georgiasnan said:

The charity is now demanding their money, must the property be sold to pay them? Thanks in advance.

Yes, if the main beneficiaries wanted to keep the home, then the executor should have made sure that the creditors and the other beneficiary (the charity) were going to be paid what they were due. If the funds weren't there to make these payments then the executor should have put the property up for sale and the main beneficiaries would have had whatever cash remained after the sale had completed and creditors/charity had been paid.

xylophone

What are the precise terms of the will?

wilfred30

Keep_pedalling said:

wilfred30 said:

Hell hath no fury like a charity scorned!!  Charities are well known for fighting tooth and nail for their bequests so, if the beneficiaries can afford it, they might be better off just paying them.  Alternatively, the house may well need to be sold to satisfy the bequest.

It not a case of the beneficiaries being able to afford it, it is a case of paying a beneficiary what they are owed. In this case it looks like the executors have made a right pigs ear of dealing with the estate. 

I meant if they can afford it without selling the house.

wilfred30

Mojisola said:

wilfred30 said:

Hell hath no fury like a charity scorned!!  Charities are well known for fighting tooth and nail for their bequests

The charity trustees have a legal duty to collect any money left to the charity they run - the two main beneficiaries wouldn't be happy if the charity wanted to keep more of the estate than they were entitled to but that's what they are doing.

Don't get me wrong, I am not criticising the charity.  I'm simply pointing out to the OP that they will not just give up and, it's highly likely that the house will have to be sold to give them their rightful bequest.