2 siblings to inherited their mums estate

Windy16641664

Question 1 sibling has been given money each month from their mums estate as they are not working. Unfortunately their Mum is at end of life.  The sibling in question has had £20k plus so far, would this be classed as a loan against their inheritance or a gift, and this money given to sibling be taken into consideration once their mum passes away.
Sorry its a hard question thanks all the same

RAS

Unless there is specific documentation indication that it is a loan, then this is ignored and the siblings split the estate remaining on her death, as indicated in the will. Do you know where the will is?
 
It is possible that the sibling not working might try to claim more because they have been financially dependant.

Voyager2002

Windy16641664 said:

Question 1 sibling has been given money each month from their mums estate as they are not working. Unfortunately their Mum is at end of life.  The sibling in question has had £20k plus so far, would this be classed as a loan against their inheritance or a gift, and this money given to sibling be taken into consideration once their mum passes away.
Sorry its a hard question thanks all the same

That depends on what was agreed, and on what the Will actually says.

Since Mum is still alive, presumably she is making gifts to her child (unless her money is in trust and so can be regarded as an "estate"). She may have said that these gifts are an advance on the inheritance, but if not then she is simply spending her own money and the estate will be what is left over on her death.

bobster2

Voyager2002 said:

Windy16641664 said:

Question 1 sibling has been given money each month from their mums estate as they are not working. Unfortunately their Mum is at end of life.  The sibling in question has had £20k plus so far, would this be classed as a loan against their inheritance or a gift, and this money given to sibling be taken into consideration once their mum passes away.
Sorry its a hard question thanks all the same

That depends on what was agreed, and on what the Will actually says.

Since Mum is still alive, presumably she is making gifts to her child (unless her money is in trust and so can be regarded as an "estate"). She may have said that these gifts are an advance on the inheritance, but if not then she is simply spending her own money and the estate will be what is left over on her death.

It's unlikely to be relevant whether she has verbally described the gifts in this way

If her Will simply states that the estate should be divided equally between her children - then this will need to be what happens. Similarly, if she does not have a Will - and her estate needs to be divided equally between her children under intestacy rules.

An exception might be if there is a formal agreement that these payments were loans (so the recipient sibling owes money to the estate).

Or if the siblings agree on a deed of variation.

Windy16641664

Thanks for you comments they been agreat help

Windy16641664

Also to considering several other facts, 1 of the sibling has power of attorney, due to the mum having dementia 

Brie

Which sibling has PoA?  the one receiving gifts or the other one?  

If it's the one receiving gifts then there might be a case for inappropriate actions taking place as giving away money is not in mom's best interest.  If it is a continuation of something that predates the dementia then it may be ok.  

elsien

There isn’t an estate until Mum passes. As above, before that unless there is something specifically in the world, the money is a gift.

Who is the power of attorney, and are they clearly evidencing why this decision was made and that it is in the mother’s best interests? 

Windy16641664

The elder sister has POA, the brother was not interested. The sister looks after her mums financial and organising care for their mum, shopping,  utilities, local authorities, her end of lifecare, unfortunately her brother just pitchs up with his hand out. Bullying his mum and abusive. Family's hay.

RAS

Does mum have a will? If so, where is it and who's the executor(s)?

You appreciate that POA ends the moment mum dies? Might be a good idea if the attorney ensures that key documents and things like cards are in their possession if mum is on end of life care? And contacts any banks immediately mum dies to close the accounts. Then hands the documents etc to the executor ASAP.

If there is no will, either child has the right to administer the estate. If the value of the accounts is below the Individual bank's limits (some as high as £50k), either could just rock up with the death certificate and personal ID and empty the account, or get it paid into another account in their own name. But once the funeral costs and debts (DWP take ages but there could be pension over payments as well as utility debts) are paid the money needs dividing in two and half paid to the other sibling. Probate or administration is required to sell property and transfer large accounts.

silvercar

Is the estate large enough for inheritance tax to be a concern? If so, any gifts made over a certain amount would be included in the estate. So the £20k would need to be accounted for.

Also, the sibling receiving regular amounts may claim financial dependence and argue for a larger share of the estate.