Inheriting part of property while on universal credit

HULKAMANIA28

Hi. My partner is due to inherit 25% of her mums house, with the remaining house split between 3 other siblings. 

We are on a fair amount of universal credit, so we were hoping that everyone would agree to sell, as we would like to get off benefits, as the house is worth approximately 400k. 

Unfortunately, the other 3 siblings want to rent the place out once probate is complete ( even though it’s needs major work done to it).
they Said they will not buy my partner out .
we are just wondering where we stand, because I was thinking we would lose all benefits once she inherits the 25%, which means if the others refuse to sell or buy us out, could make us homeless as we wouldn’t be able to afford our rent without universal credit.
2 of her 3 siblings have pots of money and own various properties, so not buying us out would be very frustrating!
any advice would be appreciated 

calcotti

If your partner cannot sell their share because the others will not buy him out and cannot force a sale unilaterally then arguably his share has no capital value and will make no difference to your UC. He will have to declare it and detail the circumstances, a Decision Maker will then have to decide.
see para H1638 and H1639. See sub para 4 of H1638 in particular.
ADM Chapter H1: Capital (publishing.service.gov.uk)

If the property is let and he is entitled to a share of the rental income that income will, I think, be treated as an addition to capital. I can't find the guidance confirming this at the moment.

(Your partner may of course not want to be put into the position of being a landlord. I wonder if he can be equally difficult and has any legal authority to refuse to permit the property to be let.)

Keep_pedalling

Her siblings sound totally selfish and unreasonable, but this is not a matter of majority rule they can’t force her to become a landlord. What it sounds like they are trying to do if push her to give up her inheritance as they can afford  to by her out but won’t. She could force a sale but this would have to go through the courts and would cost the estate a lot of money. In the first instance it might be worth speaking to Shelter about this horrible situation.

What about the 3rd sibling do they already own a house? If not they might not realise that this plan will cost them their first time buyer status.

Who is named as executor in the estate?

HULKAMANIA28

Keep_pedalling said:

Her siblings sound totally selfish and unreasonable, but this is not a matter of majority rule they can’t force her to become a landlord. What it sounds like they are trying to do if push her to give up her inheritance as they can afford  to by her out but won’t. She could force a sale but this would have to go through the courts and would cost the estate a lot of money. In the first instance it might be worth speaking to Shelter about this horrible situation.

What about the 3rd sibling do they already own a house? If not they might not realise that this plan will cost them their first time buyer status.

Who is named as executor in the estate?

Thanks for your reply. The third sibling has their own property, but isn’t rich like the other two. He wants the income from rental!

i believe all four are joint executors.
they think they can walk all over my partner, because she has learning difficulties, so I’ve got to do my best to make sure she is treated fairly!

HULKAMANIA28

calcotti said:

If your partner cannot sell their share because the others will not buy him out and cannot force a sale unilaterally then arguably his share has no capital value and will make no difference to your UC. He will have to declare it and detail the circumstances, a Decision Maker will then have to decide.
see para H1638 and H1639. See sub para 4 of H1638 in particular.

If the property is let and he is entitled to a share of the rental income that income will, I think, be treated as an addition to capital. I can't find the guidance confirming this at the moment.

(Your partner may of course not want to be put into the position of being a landlord. I wonder if he can be equally difficult and has any legal authority to refuse to permit the property to be let.)

Thanks for your advice. Much appreciated 

Keep_pedalling

If your partner is an executor they should not be bullied into renouncing their powers. If she finds it difficult to stand up to her siblings then she could appoint you as there attorney to act for her in this matter. 

Your partner can make things really difficult for them so it would be in their interest to simply agree to buy her out. 

Keep_pedalling

Just to add you might find it useful to post this issue over on the Deaths, funerals and probate board, where you should help from people who have already been through contentious probate.

Mojisola

Does the will say that the property is to be divided between the siblings or that each of them is entitled to a quarter of the estate?

HULKAMANIA28

Mojisola said:

Does the will say that the property is to be divided between the siblings or that each of them is entitled to a quarter of the estate?

There was no will! Thanks for your help. I will post something in the deaths and probate section soon. Cheers

Mojisola

HULKAMANIA28 said:

Mojisola said:

Does the will say that the property is to be divided between the siblings or that each of them is entitled to a quarter of the estate?

There was no will! Thanks for your help. I will post something in the deaths and probate section soon. Cheers

In that case, your partner is entitled to 25% of the estate but the house doesn't have to changed into joint ownership.

The administrator will have to pay out the inheritance - it's a legal obligation.

That can be done by the others paying into the estate to cover the 25% or, if there is other money available, the 25% being paid from that.

TELLIT01

I think you need to engage a solicitor to get this sorted.  If it is not the main residence of any of the siblings, and there is nothing in the will to say it should be retained by the family, I would expect the property to be sold and the proceeds split.