Brother wants £75K from my Dad to pay off debts - Dad recently widowed and we are tenants in common

JackSprout

My brother recently told my Dad he needs around £75K to steady his financial situation and would like my Dad to give him the money, my Dad has a small contingency pot and an ok pension so the money would have to come from an equity release.

However my brother and I are now Trustees of 50% of the property (I am currently organising the probate to have my Mums share of 50% of the family home bequiffed to said brother and myself split down the middle).

Any ideas?

Marcon

JackSprout said:

My brother recently told my Dad he needs around £75K to steady his financial situation and would like my Dad to give him the money, my Dad has a small contingency pot and an ok pension so the money would have to come from an equity release.

However my brother and I are now Trustees of 50% of the property (I am currently organising the probate to have my Mums share of 50% of the family home bequiffed to said brother and myself split down the middle).

Any ideas?

Ideas in what sense - to do what your brother wants, or to avoid it like mad? If the former, what's the value of the property?

Keep_pedalling

If your mother gave your father a life interest in her share then there is very little chance of raising any money through ER. Same applies if the house is now in three way ownership.

That is probably a good thing as ER in these circumstances is a terrible idea, especially for you.

Unless you are in a position to be able to help your brother financially it sound like he is out of luck.

theoretica

What is your brother's 25% of the home worth, and can you afford to buy him out? Do you want to?

tacpot12

You buying your brother out with a mortgage would be the best idea. Just do it legally and get your brother's name off the title deeds, even if this means giving him a bit more than £75K. People who find easy ways out of debt tend to find easy ways back into debt soon afterwards, so don't expect this £75K to be the end of it. 

Linton

Your brother seems happy to take money from your apparently not over-rich father.  What's in it for Dad?

As others have said if you want your brother to receive money to pay off his debts why not buy his share?  Or take out an extra mortgage yourself?  

Goose_Grass

Buying your brother out of his 25% with a mortgage sounds like you taking on debt and interest payments in order to relieve him of his.  It depends on your personality and relationship, I suppose, but many siblings would pass on that.  Unless the house was very desirable to own half of for some reason, in which case it could be an opportunity.  If this was any old house (not your Dad's) would you want to double your investment in it?

Perhaps your brother must wait until your father no longer needs his house?

xylophone

However my brother and I are now Trustees of 50% of the property (I am currently organising the probate to have my Mums share of 50% of the family home bequiffed to said brother and myself split down the middle).

Were your parents tenants-in-common of the property before your mother's death?

Did your mother's will leave a life interest  in her share to your father with you and your brother as remainder men?

If so, has your father varied the will in such a way as to give up the life interest in favour of a transfer to you and your brother now?

If so, would your brother's share be worth  £75,000?

Are you willing to buy out his share?

JackSprout

Yes my parents were tenants in common.

Yes she left interest to myself and my brother at 25% and 50% to my father

Father has not changed his will as yet, its a mirror of my mothers.

As it stands the house is worth £750k and there is potential for development so would be a good investment, but I wont be buying my brothers share.

These will were set up to protect both parents having there estate dwindled away by care costs, however I now see there is some form of protection also.

Gin_and_Milk

Your brother wants your dad to GIVE him the money?
I'm only going by the info you've posted, so obviously I know very little about the circumstances behind your brother's debt, but relying on someone else to 'steady his financial situation' only makes it easier for him to get himself into the same predicament in future.
Equity release is a terrible idea and I don't see why you or dad should be penalised for helping out your brother.
Sorry if I appear harsh, but unless your brother is in that much debt because of a messy divorce or something else beyond his control it should be for him to sort out.
Whatever your dad decides to do, I would certainly advise him to go through a solicitor and make that clear to your brother.  Otherwise you might end up with a whole heap of stress which could have been avoided once your dad passes.

Albermarle

These will were set up to protect both parents having there estate dwindled away by care costs, however I now see there is some form of protection also.

I am not an expert on these matters, but usually trying to put assets out of reach of the local council does not work .If the council suspects you have done this ( however it is done ) they will just not pay, as it will be seen  as deliberate deprivation of assets .

Also most people with money/assets prefer to pay for themselves anyway , to get a better standard of care . Not much point having a £750K house and then going into the cheapest council funded care home in the area. Would you like that for him?