Legal Aid Charge on a house I have inherited

elsmandino

Righhht - I think I am beginning to get the picture, now.

Unfortunately, no executor was stated on the will - my father's widow is acting in the role.

So, am I correct that the following will happen:

The presumed 50% interest in the house is gifted to me, and thus removed from the estate.

Everything else left to my father's widow, bar the house (i.e. the residue) will have to be fully exhausted to fully pay off the charge on the house I live in.

Am I correct in thinking if the residue is not enough to fully pay of the charge, I could potentially be pursued for the balance (at which point I would have to pay it, to stop any potential forced sale of the property)?

xylophone

Your stepmother is going to obtain probate (with the help of a solicitor)?

Assuming that you have established that your father was indeed a beneficial owner of half the value of the property (and last surviving legal owner), you will need to advise her of the current market value of his share as this forms part of his estate.

She or you will need to find out how much is owed to legal aid because this  will be a debt of his estate.

Has she discussed this with her legal adviser?

It will not be possible to transfer the property into your name until the charge has been redeemed.

If there is not enough money in his estate to redeem the charge, then presumably she could argue that you, as beneficiary, should pay any excess?

elsmandino

Thank you sooooo much - really appreciate your help with this.  Am pretty sure I understand my position now.

As far as I know, my stepmother is going at it alone but, given what I know now, I am seriously going to advise that she obtains some help.

Am going to pass on what you have told me.

Thanks again.

Marcon

elsmandino said:

Righhht - I think I am beginning to get the picture, now.

Unfortunately, no executor was stated on the will - my father's widow is acting in the role.

So this was clearly a DIY will...before doing anything else, I'd get a solicitor to look at it and check it is valid.

elsmandino

Sorry - I stand corrected.  I just had a word with my stepmother and she is named as the executor on the will.

74jax

Hi op, I'm from the other thread on the House Board - I lurk everywhere 🤣

Did you find out how your mother and father owned the marital home? In the other thread you said it was Joint Tenants but weren't sure. I know your mother died intestate so it's really important to get how the property was owned at her point of death.  You say you were left your mother's share, meaning it might not have been Joint Tenants and you have been owning 50/50 since your mother died with your father. 

Did you find out what your beneficial interest was that your father left you? I completely understand when you were at the solicitors you didn't want to ask questions, it's quite hard at the time, but have you found out since? 

Keep_pedalling

xylophone said:

Your stepmother is going to obtain probate (with the help of a solicitor)?

Assuming that you have established that your father was indeed a beneficial owner of half the value of the property (and last surviving legal owner), you will need to advise her of the current market value of his share as this forms part of his estate.

She or you will need to find out how much is owed to legal aid because this  will be a debt of his estate.

Has she discussed this with her legal adviser?

It will not be possible to transfer the property into your name until the charge has been redeemed.

If there is not enough money in his estate to redeem the charge, then presumably she could argue that you, as beneficiary, should pay any excess?

Section 35 of the Administration of Estates Act 1925 deals with secured debts and provides that, in the absence of contrary intention (which can be expressed in the will or in another document), a debt charged on an asset which passes under a specific gift in a will is not payable from residue. Instead, it is borne by the specific beneficiary.

So unless the will says otherwise the debt comes out of the OPs share. With 8%pa simple interest being added this could be a significant sum.

https://www.lawgazette.co.uk/legal-updates/probate-dealing-with-debts/5038206.article

74jax

Keep_pedalling said:

xylophone said:

Your stepmother is going to obtain probate (with the help of a solicitor)?

Assuming that you have established that your father was indeed a beneficial owner of half the value of the property (and last surviving legal owner), you will need to advise her of the current market value of his share as this forms part of his estate.

She or you will need to find out how much is owed to legal aid because this  will be a debt of his estate.

Has she discussed this with her legal adviser?

It will not be possible to transfer the property into your name until the charge has been redeemed.

If there is not enough money in his estate to redeem the charge, then presumably she could argue that you, as beneficiary, should pay any excess?

Section 35 of the Administration of Estates Act 1925 deals with secured debts and provides that, in the absence of contrary intention (which can be expressed in the will or in another document), a debt charged on an asset which passes under a specific gift in a will is not payable from residue. Instead, it is borne by the specific beneficiary.

So unless the will says otherwise the debt comes out of the OPs share. With 8%pa simple interest being added this could be a significant sum.

https://www.lawgazette.co.uk/legal-updates/probate-dealing-with-debts/5038206.article

If the beneficial interest only turns out to be a right to live in the property, would the step mother be liable (even if the op owns half the house which his mother left him) 

elsmandino

74jax said:

Hi op, I'm from the other thread on the House Board - I lurk everywhere 🤣

Did you find out how your mother and father owned the marital home? In the other thread you said it was Joint Tenants but weren't sure. I know your mother died intestate so it's really important to get how the property was owned at her point of death.  You say you were left your mother's share, meaning it might not have been Joint Tenants and you have been owning 50/50 since your mother died with your father. 

Did you find out what your beneficial interest was that your father left you? I completely understand when you were at the solicitors you didn't want to ask questions, it's quite hard at the time, but have you found out since? 

Hi there - in the end, I decided to call to the county court for a copy of the final order.  I was told to e-mail them details of the case number and they said that they would call me back, on Monday, so they could arrange payment and ultimately send me a copy of the consent order.

As you say, at least then I can be sure what my current interest in the house was before my father died.

Keep_pedalling said:

xylophone said:

Your stepmother is going to obtain probate (with the help of a solicitor)?

Assuming that you have established that your father was indeed a beneficial owner of half the value of the property (and last surviving legal owner), you will need to advise her of the current market value of his share as this forms part of his estate.

She or you will need to find out how much is owed to legal aid because this  will be a debt of his estate.

Has she discussed this with her legal adviser?

It will not be possible to transfer the property into your name until the charge has been redeemed.

If there is not enough money in his estate to redeem the charge, then presumably she could argue that you, as beneficiary, should pay any excess?

Section 35 of the Administration of Estates Act 1925 deals with secured debts and provides that, in the absence of contrary intention (which can be expressed in the will or in another document), a debt charged on an asset which passes under a specific gift in a will is not payable from residue. Instead, it is borne by the specific beneficiary.

So unless the will says otherwise the debt comes out of the OPs share. With 8%pa simple interest being added this could be a significant sum.

https://www.lawgazette.co.uk/legal-updates/probate-dealing-with-debts/5038206.article

Thank you for this - despite the the solicitor, reading out the will, having told my stepmother that the charge is definitely payable by the estate, I have a horrible feeling, now, that this is going to be the killer blow and I am now due to pay the statutory charge in full.

One other issue, in relation to this, now - I did read that legislation brought in the 8% interest charge in 2006.

My parents' marriage was dissolved before this, so would the 8% interest not apply to the charge?  i.e. on the basis that it would otherwise have to be retrospective.

elsmandino

Bit of an update on this one.

I wrote to the Legal Aid Board to find out anything I could about the charge on my property - they confirmed that they could tell me nothing without the written permission of the executor of the will.

Furthermore, the County Court never rang me back so I am going to have to give them another call.

This is going to be so drawn out.