Dispute With Sibling Re Selling Inherited Property

Logan2525

I am looking for some advice about my late mother’s property.

The property was left to both me and my sister in mum’s will, we are both joint executors of the will and live in Scotland as did mum.

Mum passed away unexpectedly last May and for some years previous had been estranged from my sister. I had become my mum’s carer after my dad passed away in 2019, but it wasn’t a full-time role and I didn’t live with mum.

In 2019 my mum told my sister that I was to move into her property when she passed away. She also said we I pass away the property would go to my sisters two children, as I don’t have children. My sister had an argument with mum about this and stormed out.

Mum’s reasoning behind her decision was because I currently rent and don’t own my property, but my sister does. She wanted to ensure that I wouldn’t have the burden of a mortgage in my 50’s and the security of owning my own home.

Shortly after covid happened and mum didn’t get round to changing her will. During this time mum saw her grandkids about 3 times over the 2-3 years of Covid, even though they only lived 5mins drive away. Mum decided that she wasn’t really important to them and told me she wanted to change her will and leave the house to me as well as her savings of £200k. She did however still want to leave £15k to each of her grandkids.

I wasn’t comfortable with this and even although I was also estranged from my sister, felt she should still get her share of mum’s savings. When I mentioned this to mum she said, “I don’t care, that is what I want, and I won’t be here so it will be down to you to deal with.”

I didn’t take mum to change her will before her death because of this.

After mum died, we had the property valued between £110-£120k, and my sister and I agreed to go for the mid-point of £115k. She agreed that I could buy her 50% share of the property for £57500.

This was confirmed from the outset via email and agreed with the solicitor when we instructed her.

During the Confirmation process my sister asked for 5 years’ worth of bank statements from mum’s account. I declined this, as mum wouldn’t have wanted this as she would lock anything away in her safe, so my sister couldn’t find anything if she came round to mum’s.

I agreed to the solicitor requesting the statements for the month before mum’s death, which my sister confirmed she was happy with.

Three months later when Confirmation was granted and the solicitor advised it was time to start dealing with transferring the property to me, my sister made it a condition that she will only sell her share to me if I agree to 5 years’ worth of statements being released to her and for her to review them before transferring the property.

When I questioned why she was so insistent, the solicitor advised that my sister thought there should be more funds in mum’s bank account and that misappropriation of funds was likely. I declined the request and asked why my sister hadn’t discussed this with me at any point since mum’s death and what her proof was.

The next day she changed her mind about selling the property to me under any circumstance and wanted the property placed on the open market and the proceeds split.

The estate solicitor has advised there is no legal requirement for her to sell her share to me, but also mentioned she feels the ground is constantly changing and the terms of business that were agreed initially have changed and she would do no further work until we were both on the same page.

I contacted my sister via Whatsapp and she replied stating she had nothing to say to me, and everything had to be done through our solicitor.

The next day, I receiver a further message, which hasn’t been written by my sister. The tone was more positive, and she said we need to move forward and decide on an estate agent to market the property and to arrange for all belongings to be valued and sold. She said she felt it wasn’t productive to go in the “why’s” around not selling to me and to let emotions become involved.

Based on the above, what I essentially would like to know, is there anything legally I can do to make my sister sell her share of the property to me as originally agreed? The property has been in the family for over 50 years, I know the area as well as the neighbours, so don’t want to sell and buy somewhere else.

If I refuse to sell, the property can’t be placed on the open market, which would likely mean my sister would go for an order of sale. Is she likely to be successful and would incurs the costs?

My sister has refused mediation and not answering my calls.

I know this isn’t legally binding, but mum had told several neighbours that she wanted the property to go to me when she died. Not sure if I get statements from them if that will help my case if it goes to court.

If she sells to me, it will be cheaper than selling on the open market as we don’t have to pay estate agency fee and conveyancing costs will also be cheaper.

The property value used for obtaining confirmation was £120k.

Sorry for the long post, I seem to have got carried away.

Any help or guidance would be greatly appreciated as I am worried sick about losing the family home.

diego_94

Most of what you have written is irrelevant, unless your mum changed her will (which she didn't) then its 50/50

You cant legally force her to sell her share to you, the will clearly states 50% of the house is for her and cannot be changed. Why ar you so hestitant to send 5 years worth of banks statements? What are they going to show that she could use as ammo?

Ultimately you both need to be on the same page on what you want to do. If you do not agree, all that will happen is that most of your inheritance will be swallowed up with legal fees with no real benefit.

If I were you i'd bite the bullet, sell the house and use it for a deposit on another place. It seems from what you day your sister is going to find a fault with anything. With some people you cant win.

Also of course we are only getting one side of the story.

kayleighali

I am sure someone more knowledgeable will come along, but is it not possible for you to buy the house anyway? I am thinking the £57k you were planning to pay your sister has to come from somewhere so why not use that as a 'deposit' for the house and then pay the rest off from your share of the proceeds? A mortgage broker would probably be able to help you arrange that I would think.

Keep_pedalling

Nothing that was said by your mother prior to her death overrides her will, so there just three options.

1. You buy your sister’s share of the house and take full ownership.

2. As executors you sell the house on the open market and split the proceeds between you.

3. Your sister goes on the deeds as owning 50% but she agrees to let you live there.

It does not sound like the current state of your relationship will allow number 3.

I also agree with the above why are you hiding the bank statements from your co executor they have a right to see them, you are just creating distrust by not being transparent.

Linton

I am not a lawyer but my understanding is:

What Mum said in 2019 and thereafter is irrelevent to what the executors should do, as is what the neighbours say.  The only thing that matters is what the will actually says.

If your sister is an executor she has as much right to see Mum's bank statements as you do.  You would be wrong to withhold them.  If the situation was reversed wouldnt you be suspicious?  

Your sister has as much right to her inheritance as you have to yours.  If you two can agree a fair price for her share acceptable to both sides then fine.  If not the house will have to be sold and the proceeds split. I would expect the courts to enforce this if the dispute continues.  If you really want the family home you had better make you sister a good offer.

So my advice is to work constructively with your sister.  That is the only way you are going to get what you want.

MattMattMattUK

She is a joint executor, you have no right to withhold the bank statements from her and the fact that you are is highly suspicious. You have a choice, if you want to buy her out of the house then let her see the statements, if you want to see the house sold on the open market, with the costs of the sale being forced through coming out of the estate funds, then carry on being difficult. 

Malthusian

Logan2525 said:

Based on the above, what I essentially would like to know, is there anything legally I can do to make my sister sell her share of the property to me as originally agreed?

Yes. Put the property on the market and then put in the highest offer for her half. 

If she was sole owner she wouldn't be obliged to accept the highest offer, even if it was cutting off her nose to spite her face. But as you own half the property, I can't see how she could force both of you to accept an inferior offer.  

As I understand it you inherited £100k in cash, and 50% of the property is valued at £60k, so if you want it that badly it seems to me you have the money. And you are a cash buyer so there can't be a "£100k from a cash buyer beats £110k from someone in a chain" situation. Assuming your sister has magnanimously stopped quibbling about bank statements (despite your suspicious behaviour) and there is no obstacle to distributing the cash savings from the estate.

If I refuse to sell, the property can’t be placed on the open market, which would likely mean my sister would go for an order of sale. Is she likely to be successful and would incurs the costs?

If you force your sister to go to court for no good reason, you would pay the costs.

I know this isn’t legally binding, but mum had told several neighbours that she wanted the property to go to me when she died. Not sure if I get statements from them if that will help my case if it goes to court.

Not in the slightest.

Any help or guidance would be greatly appreciated as I am worried sick about losing the family home.

At the risk of being brutal, it's no longer going to be the "family home" whatever happens, as you intend to live in it alone. It's up to you if you want to live there badly enough to put in the highest bid.

Logan2525

diego_94 said:

Most of what you have written is irrelevant, unless your mum changed her will (which she didn't) then its 50/50

You cant legally force her to sell her share to you, the will clearly states 50% of the house is for her and cannot be changed. Why ar you so hestitant to send 5 years worth of banks statements? What are they going to show that she could use as ammo?

Ultimately you both need to be on the same page on what you want to do. If you do not agree, all that will happen is that most of your inheritance will be swallowed up with legal fees with no real benefit.

If I were you i'd bite the bullet, sell the house and use it for a deposit on another place. It seems from what you day your sister is going to find a fault with anything. With some people you cant win.

Also of course we are only getting one side of the story.

I have no issue about the house being split 50/50, I was only attempting to add context to the situation.
My mum wouldn't have wanted her to have the states when she was alive, so I feel I have to respect that now she is dead. There is nothing in the accounts I am aware of that she could use as ammo. 

If I bite the bullet and sell, granted I will have approx. £160k to use against the purchase of another property. I want to move into the family home, as agreed initially with my sister.

This is from the will, would I be able to request my inheritance as an asset i.e. the house and the remainder in cash?

"To     settle the entitlement of any beneficiary, in part or in whole, by payment in cash or by the transfer of a specific asset or assets to the beneficiary or to the legal guardian of the beneficiary with power to require the beneficiary or any such guardian to accept such asset or assets at such value or estimate of value as the trustees in their uncontrolled discretion shall deem fair and, subject to any of the foregoing provisions, to set apart and appropriate specific investments or    assets to represent the whole or any part or parts of the share or shares, prospective or otherwise, of any beneficiary hereunder at such valuation as the trustees may in their sole discretion determine, so that thereafter the particular share or shares shall have the full benefit and the whole risk of the appropriated investments or assets."

There are always three sides to a story.

Logan2525

kayleighali said:

I am sure someone more knowledgeable will come along, but is it not possible for you to buy the house anyway? I am thinking the £57k you were planning to pay your sister has to come from somewhere so why not use that as a 'deposit' for the house and then pay the rest off from your share of the proceeds? A mortgage broker would probably be able to help you arrange that I would think.

I can't buy the property on the open market as I am an executor, I already asked the solicitor this.

noitsnotme

Logan2525 said:

diego_94 said:

Most of what you have written is irrelevant, unless your mum changed her will (which she didn't) then its 50/50

You cant legally force her to sell her share to you, the will clearly states 50% of the house is for her and cannot be changed. Why ar you so hestitant to send 5 years worth of banks statements? What are they going to show that she could use as ammo?

Ultimately you both need to be on the same page on what you want to do. If you do not agree, all that will happen is that most of your inheritance will be swallowed up with legal fees with no real benefit.

If I were you i'd bite the bullet, sell the house and use it for a deposit on another place. It seems from what you day your sister is going to find a fault with anything. With some people you cant win.

Also of course we are only getting one side of the story.

My mum wouldn't have wanted her to have the states when she was alive, so I feel I have to respect that now she is dead. 

I’m sorry to say but this is now irrelevant.  Your sister is an executor and has a legal right to see the statements.  By not letting her see them you appear to have inadvertently made the situation worse.

Logan2525

The solicitor has advised me as joint executors, I need to agree to her requesting 5 years of bank statements. Mum was of sound mind and dealt with all her finances independently. I had no access to mums accounts. The whole thing about statements came out of the blue.
Thanks for everyone's comments.