Worried about My late mother's house

Gavin83

Bhaje said:

His youngest son has lived there for a while is challenging/daring me to get whoever I wish involved.     

Then accept that challenge. Let the council know your brother has an interest in a property that he almost certainly hasn’t declared. They’ll reassess his financial assessment and they’ll certainly be pushing the issue on your behalf.

Bhaje

@RAS One of the ceased administrators, my brother, was divorced. The second, my sister , was married whose husband died in 2015.

RAS

Did either of the administrators have children?

RAS

https://forums.moneysavingexpert.com/discussion/comment/80025603#Comment_80025603

Can't do a partial quote so will post and hope to edit.

https://forums.moneysavingexpert.com/discussion/comment/80025626#Comment_80025626

Given the decades since mum died, is there any chance that the elder brother has established a right to the property?

@Bhaje what was the date of administration?

And more importantly, what is the current value of the house?

What is the value of the outstanding interest only loan?

Do the Building Society even know mum died?

And who has been paying the interest only loan since 1992?

Bhaje

@RAS

1. The two previous administrators , had 4 children each
2. Date of administration was October 1994
3. Value of house is about £1M
4. Outstanding loan is about £42K
5. Building society is aware of mother's death
6. Interest was being paid by one of the late administrators (my brother) and the brother in care home. They moved in after their divorces and split the payment of interest. When the adinistrator died ,that half of interest payment ceased.This outstanding loan is increasing in the current financial climate.

getmore4less

https://forums.moneysavingexpert.com/discussion/comment/80026623#Comment_80026623

If there are no executor of the last executor to die then there is no executor chain.

New grant needed for the original estate based on the hierarchy for that estate

poppystar

Are you absolutely sure that the building society is aware of the death and was happy to pass the interest only loan on to the brothers? It seems strange given they would then know that the house wasn't registered to the brothers. It's also been a very long term loan if your mother took it out and it has continued over thirty years after her death. Not to mention the fact that only half of the interest has been being paid and they have been happy with that. I know there were some flexible interest only deals in the eighties and nineties but open ended as well seems unusual.

Did the administrators pay any inheritance tax due at the time. This sounds a high value estate and was pre RNRB as I understand it so it's quite likely some was due and might still be overdue.

This could be a real headache for you in terms of paperwork and family angst if you take it on especially as the situation has become even more complicated over the intervening decades.

RAS

https://forums.moneysavingexpert.com/discussion/comment/80027415#Comment_80027415

I presume then that the OP as a surviving child of mum can obtain a new grant of administration?

And needs to write a will ASAP if they don't have one or their executor is elderly?

What's the situation going to be on CGT?

Bhaje

Hi Thank you to all contributing to this subject it is a great help

@poppystar My brothers must have informed the building society, from statements which are addressed as 'personal representatives of Mrs…….' and think they also extended the term. I think the term is due to end in 18 years.

My brother who was the administrator did contact the building society to send correspondence concerning the loan directly to me.

There was no IHT payable as the property value was below the threshold at the time of mother's passing.

@RAS Assuming I obtain the grant of administration, should my will contain the name of next executor after me? Am I rcorrect in my understanding?

RAS

My comment was by way of a question really, but based on the logic of getmore4less posqtpost.

You really need advice from getmore4less, or a lawyer.

But…….

When an executor dies before distributing an estate, their executor generally becomes responsible for sorting it out.

This estate has not been distributed for three decades because

your mum didn't make a will

the adminstrators died

Neither of them had a will, so their inheritors can't take over the administration.

There are now only two siblings left. If either of you are to administer the estate, you need to live long enough to sort out the mess and distribute it, including extracting your brother and his son from the house before selling. Could take a few years?

Do you have a will? If not, the administration could fail a third time because you are intestate.

Right now, it looks like applying for administration is an urgent matter. Get on with it.

IHT may not be an issue, but the house will have increased massively in value, and that may well be subject to Capital Gains Tax. I'm not sure because it has been occupied by inheritors but you need to take advice from a specialist. If there is CGT bill, you will only have 60 days to pay it after the sale, so you need to understand the rules before you sell.