Siblings inheriting share of Mums house

unforeseen

rachel230 said:

Seems a big ask to expect them to forgo their inheritance for the foreseeable future - what if they have their own financial plans to consider - and yet expect them to pay their percentage for any repairs. Sounds like wanting your cake and eating it too..
As another poster said, theoretically they could ask you to pay them rent for the portion they own.

Not forgetting the CGT they will be liable for when it is finally sold

getmore4less

One option should the siblings agree is a deed of variation to create a life interest(IPDI) trust where the OP in effect owns the property.


Typically the life tenant is responsible for all maintenance.


There are issues with this and could be why mum did not do a life interest.



Without more information on things like the size of the mums estate, the likely size of the OP estate that could be a very bad move for tax. 

Especially as it would not benefit from the residential nil rate band as it will not be directly inherited.


the reason 4 owners does not get mentioned is because it is really a non issue.

All property is held in a trust with legal owners(max 4) and beneficial owners(unlimited), 

In most cases that people come across the legal and beneficial are the same people.

davilown

Op, I think you need to make this a quick and simple break in order to prevent any additional issues at a later date.

There are so many examples of individuals who ‘believe’ that X wanted the to stay in the house till they leave this world, but unless it’s written in the Will, that’s not the legal case.

Unless you can buy their shares from them, you will have to sell the property - doing so sooner rather than later will make this whole situation finish rather than it being dragged through the courts with you ending up potentially paying your siblings court fees (this reducing cash amount for you to move on).

Sorry to put it bluntly but do the right thing for the 5 of you, not just yourself.

Once sorted, you’ll be able to grieve for your mum without this hanging over your head.

HampshireH

3Snowy said:

The Guardian article is very useful and interesting. I am trying to see it from all viewpoints but of course it’s complicated and an emotional issue. I’m sure my Mum would want me to continue living here. I am 63 and don’t have children myself and I will leave the house to my siblings children when I die, except for one sister who I don’t speak to. It seems odd I give them money and then their children will get my share of the house anyway. Perhaps if I make this clear to my Siblings it may help. 

But that doesn't help your siblings. It would mean they gave been bypassed in inheritance.

If your mother wanted your siblings children to receive everything her will would have said so.

But it seemingly gave her children the shares outlined which seems to have been done fairly based on your residency

AdrianC

Let's say the house is worth £200k. You have £100k, the others have £25k each. But the cash bequests cannot be paid, because it's all tied up in the house. There is no easy way for you to have a £200k house to yourself AND the others all get their £25k, unless you can pay them that money somehow.

Your mother cannot easily leave you "50%" of the house, and your siblings "12.5%" each, unless you're going to all end up joint owners for the long term - or unless one of you can buy the others out - or unless you all want to sell.

If you're all going to end up joint owners, then - yes - of course there are implications in that.

A well-drawn-up will would have left %age shares of the estate - because, obvs, the house may have been sold, and there may be other assets or debts.

So, realistically, you have two choices.

1. Sit down with your sibs and find out who wants cash now or a %age of the property. If it's a split, can you buy the cash-preferrers out? If it's 2-in-2-out, plus you, then can the three of you raise £50k between you? Split that 2x12.5%=25% between the three of you according to the cash input.

2. Get an EA sign up, and divide the proceeds.

Keep_pedalling

What is the value of the house and the total value of the estate?

ratechaser

50% equity release that can then be paid to the siblings? Yes it means that the OP will effectively lose their 50% on death but it does at least solve for the problem of how to retain a life interest in the property.

Norman_Castle

3Snowy said:

in the meanwhile whilst paperwork being dealt with who is responsible for repairs etc. I have paid all the council tax, house insurance and all utility bills. Any advice appreciated. 

While your mothers estate is in probate, the council tax can be adjusted for single occupancy, utility bills after the date of death should be your responsibility, house insurance from your mothers estate until an agreement is reached regarding whether it is sold or you remain there. If there is an agreement and it remains jointly owned the cost should be shared.

While in probate only basic maintenance should be done, paid for by the estate and by agreement of the executor.

Norman_Castle

3Snowy said:

 I’m sure my Mum would want me to continue living here. I am 63 and don’t have children myself and I will leave the house to my siblings children when I die, except for one sister who I don’t speak to. It seems odd I give them money and then their children will get my share of the house anyway.

If you remain in the house then they inherit their share after your death in effect you have inherited the house on the agreement it goes to them after your death. This isn't what the will states. Its possible the solicitor was aware only four people can own a property, the expectation being it would be sold. It is harder for you as you are losing your home but unless you can buy the remaining 50% share its unfair on the other sibling to expect them wait.
Why were you given such a large share, was it to help finance another property?

AnotherJoe

Norman_Castle said:

3Snowy said:

 I’m sure my Mum would want me to continue living here. I am 63 and don’t have children myself and I will leave the house to my siblings children when I die, except for one sister who I don’t speak to. It seems odd I give them money and then their children will get my share of the house anyway.

If you remain in the house then they inherit their share after your death in effect you have inherited the house on the agreement it goes to them after your death. This isn't what the will states. Its possible the solicitor was aware only four people can own a property, the expectation being it would be sold. It is harder for you as you are losing your home but unless you can buy the remaining 50% share its unfair on the other sibling to expect them wait.
Why were you given such a large share, was it to help finance another property?

Most likely because she had been living with and caring for her mum, or maybe she has health issues and the others are doing well and mum thought they didn't need it as much.
Somewhat of a  poisoned chalice though. 
I think the equity release option might be best. Appoint a solicitor to, simultaneously, pass ownership to OP, equity release half of the value, use that half to pay the other siblings.