Joint inheritance moral and logistical dilemma.

Geriatricmum

LinLui said:

Geriatricmum said:

My parents and sister know I will not be my sisters baby sitter once they are gone. They said I won't need to be as she can look after herself (denial) 

I suspect they are splitting the properties 50/50 to force me to take control of the properties as they know my sister is not capable and as a result my sister is set up for life while I do all the work managing the properties so they aren't stolen by some unscrupulous family member or messed up by my sister someway.

I cannot work with my sister.

I am confused as to how they can be both in denial saying that she can look after herself as well as in denial saying that she cannot look after herself.

From the many conversations we've had I've deduced that they know they've made mistakes with her and she cannot be financial self sufficient, it's a mixed feeling of guilt and love and taking no responsibility and denial. They dont want to face the reality of her being alone once they're gone to manage her own life so they are forcing it upon me. 

 However there really is a simple solution. Tell your parents that you want nothing from any estate that they have to leave. Make it clear that unless they leave everything to your sister, you will gift her anything that they leave to you. They then have the choice of leaving her to it, or appointing someone to manage her affairs / a trust in her benefit. You will then have no reason nor need to ever have anything to do with her again, and whether the properties are appropriately managed or stolen by an unscrupulous family member is none of your business. 

A trust was also something I was thinking might be a solution.

If I give them this ultimatum I would not be able to have anything further to do with them. 

Geriatricmum

theoretica said:

I see two options - probably the cleanest is to sell the properties.  You can then buy another rental property with your share if that is what you choose to do.  You sister could do the same, or arrange for an annuity or something. 

Alternatively, after/during inheritance you could agree to exchange half properties with your sister - buy her half of the London one with your halves of the Spanish ones, so long as the values are equal, or balance things as necessary. 

Do you know who your parents are appointing as executors?

Thank you. Are there tax implications for a property swap like this? The London flat exceeds the value of the Spanish flats combined. 

Geriatricmum

Thankyou to everyone who has commented so far. I don't feel like such a bad sister now. You've all given me alot to think about and research. 

Brie

If London property does not = Spanish property then you could simply ask your sister to sell a portion of the London property so there's a split by country.  So London-£50k = Spanish+£50k.  

re POA - an easy suggestion to your parents is that they both give you POA for the London flat so you can manage it on their behalf.  Much easier for you from the UK when they are elsewhere.  You can DIY these for about £85 and no solicitors need to be involved.  I don't know however whether they would need to be witnessed and signed in the UK or if your dad could get his witnessed and signed in Spain.  Must admit I've never seen anything about this on the gov.uk site.   

Marksfish

The properties in Spain may not fall under the remit of an English will. Inheritance rules are very different in Spain (50% to children and the remainder to the surviving partner) and there is a transfer tax to pay upon a death (7% if I remember). We had to have a will made in Spain to specifically refer to our English wills, but this was pre- Brexit, so not sure how that would work now. 

theoretica

Geriatricmum said:

theoretica said:

I see two options - probably the cleanest is to sell the properties.  You can then buy another rental property with your share if that is what you choose to do.  You sister could do the same, or arrange for an annuity or something. 

Alternatively, after/during inheritance you could agree to exchange half properties with your sister - buy her half of the London one with your halves of the Spanish ones, so long as the values are equal, or balance things as necessary. 

Do you know who your parents are appointing as executors?

Thank you. Are there tax implications for a property swap like this? The London flat exceeds the value of the Spanish flats combined. 

If all properties were part of the same UK inheritance (and equal value exchanged) it could be done without tax implications - but across international boundaries it may get more complicated and I have no idea!

With different values, and likely the values going to change relative to each other, that will be another strong reason your parents may want to split each lot equally, rather than maybe give one of you more than the other. 

Geriatricmum

elsien said:

What does Spanish law say about a) Having to include children in wills and b)variation of a will.
I don’t know what the difference is between Spanish and English legislation in that respect. 

Tax law in Spain varies by region. I know there are forced heirship rules but I don't know what the specifics are tbh

Pollycat

Geriatricmum said:

elsien said:

What does Spanish law say about a) Having to include children in wills and b)variation of a will.
I don’t know what the difference is between Spanish and English legislation in that respect. 

Tax law in Spain varies by region. I know there are forced heirship rules but I don't know what the specifics are tbh

It should be your parents who sort this out before making any more wills.
They need to understand the implications of their actions - before it's too late.

Geriatricmum

Pollycat said:

Geriatricmum said:

elsien said:

What does Spanish law say about a) Having to include children in wills and b)variation of a will.
I don’t know what the difference is between Spanish and English legislation in that respect. 

Tax law in Spain varies by region. I know there are forced heirship rules but I don't know what the specifics are tbh

It should be your parents who sort this out before making any more wills.
They need to understand the implications of their actions - before it's too late.

It's difficult to talk to them about it. I'm quite practical and pragmatic but obviously because we're talking about their mortality 90% of the time I get "yes, yes it's all in hand".

Sarahspangles

elsien said:

Sarahspangles said:

What are the in Spain for someone who lacks capacity, if there is nobody in the family able/willing to act for them? Is there a scenario where you hand your sister’s care to whatever that authority is? Even if you got on with your sister, you’re in another country with a family of your own.

No one has said that the sister lacks capacity to manage her money.

The OP just has?

I suspect they are splitting the properties 50/50 to force me to take control of the properties as they know my sister is not capable

Though if the parents won’t admit this to themselves, OP is in a cleft stick.