Advice needed inheritance

Sally_ißß960

We are inheriting our fathers house between me and my 2 brothers, probate is yet to begin so at this time the property still belongs to his estate.

I have lived with my father for the last 12 years & lived my life around him & any care he needed though not in any official capacity, both brothers were happy for me to do so & are happy for me to carry on living there rent free as they do not want to be responsible for maintenance of the property or house insurance costs etc and also possible tax implications as they are both housed adequately in council properties and one is on disability benefits, 

One of my brothers has already asked to move in with me in the next few months along with his wife, dog and 2 cats ! I have said I dont think legally I can stop them from moving in but Im not particularly a dog or cat person and both myself & my other brother feel its way too soon to be considering such huge decisions whilst its been a matter of weeks since our father passed & the thought of clearing out his belongings is beyond us right now. 

There is nothing in the will to say I have any rights more than the others to carry on living there although we are all in agreement this would have been stated should the will have been updated, the will was written 14 years ago when our mother passed and just states that we each get an equal share.

Is my only option to stop them from moving in is to buy him out ? Or can he just say hes moving in & thats us ? 

if i could find a way to buy him out what is the best or simplist way to go about it ? can he gift his share to me and i transfer a sum of money to his bank account is this an option or would this need a deed of variation to the will ? or is there even a possibility to pay him monthly over say 5 years to reach our agreed figure as he will be at retirement age and thats when he has a plan in place which will require money. 

What legal paperwork would we need or solicitor to ensure it is done correctly. my other brother is not concerned to be bought out and is happy to keep his share as an asset that he will pass on to his children, none of us want to sell but the tension is tangeable, any advice will be welcome.

Thank you

FlorayG

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Sally_ißß960

FlorayG said:

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Equal shares in the house

Keep_pedalling

Sally_ißß960 said:

FlorayG said:

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Equal shares in the house

Even then without the will containing a life interest clause you siblings can push for a sale as they they can’t benefit from their inheritance without moving in or selling up. What is the total value of the estate and the value of the house? 

Sally_ißß960

Keep_pedalling said:

Sally_ißß960 said:

FlorayG said:

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Equal shares in the house

Even then without the will containing a life interest clause you siblings can push for a sale as they they can’t benefit from their inheritance without moving in or selling up. What is the total value of the estate and the value of the house? 

Neither sibling wants the house to be sold outside the family,one of them doesnt want to sell there share at all or move in.house is £250k,estate is under £325k

RAS

I'd suggest you all educate yourselves about Capital Gains Tax. Owners who are not resident will have to pay this when the house is sold. 

And consider the impact of part ownership on benefit entitlement, housing rights, divorce and first buyer rights.

Keep_pedalling

Sally_ißß960 said:

Keep_pedalling said:

Sally_ißß960 said:

FlorayG said:

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Equal shares in the house

Even then without the will containing a life interest clause you siblings can push for a sale as they they can’t benefit from their inheritance without moving in or selling up. What is the total value of the estate and the value of the house? 

Neither sibling wants the house to be sold outside the family,one of them doesnt want to sell there share at all or move in.house is £250k,estate is under £325k

One option is to distribute the estate in a different way. Your siblings get all of the non house assets leaving you with a larger share of the house, you then buy out the remaining share from them.

There are lots of potential issues with your siblings owning a share in what is your home. Either of them running into financial difficulty, getting divorced or dying could lead to a forced sale of the house.

Another option is for your siblings to do a deed of variation putting their share of the house into an immediate post-death trust with you as the life tenant. The legal ownership of the house would then be split between you and the trust but you would be the beneficial owner. This removes the security issue for you and the CGT issue for them. They or their children would inherit their share on your death or if you no longer needed the house.

Linton

Sally_ißß960 said:

Keep_pedalling said:

Sally_ißß960 said:

FlorayG said:

Partly this will depend on the wording of the will. Is it '"equal shares in the house" or "equal shares in the estate"?

Equal shares in the house

Even then without the will containing a life interest clause you siblings can push for a sale as they they can’t benefit from their inheritance without moving in or selling up. What is the total value of the estate and the value of the house? 

Neither sibling wants the house to be sold outside the family,one of them doesnt want to sell there share at all or move in.house is £250k,estate is under £325k

What do they want the house for?  Keeping a house purely as a memorial does not seem a sensible use of the deceased's assets.  Renting it out is likely to cause more upset when the tenants dont treat it with the respect that the family thinks it deserves.  Not renting it out will give rise to expenses such as insurance and council tax if nothing else. Unused houses may rapidly decay.

Sally_ißß960

RAS said:

I'd suggest you all educate yourselves about Capital Gains Tax. Owners who are not resident will have to pay this when the house is sold. 

And consider the impact of part ownership on benefit entitlement, housing rights, divorce and first buyer rights.

Is there CGT to be paid if i buy out one brother immediately after probate goes through but before land registry is done,and the other brother keeps their share but lives in their own property,i am the only one living in the house,

FlorayG

Complicated isn't it?
You won't pay CGT if you sell it because it's your main residence
As long as the other brother doesn't want to sell his share he won't pay it
The one who wants to sell you his share needs to take legal advice because he may have to

Keep_pedalling

Sally_ißß960 said:

RAS said:

I'd suggest you all educate yourselves about Capital Gains Tax. Owners who are not resident will have to pay this when the house is sold. 

And consider the impact of part ownership on benefit entitlement, housing rights, divorce and first buyer rights.

Is there CGT to be paid if i buy out one brother immediately after probate goes through but before land registry is done,and the other brother keeps their share but lives in their own property,i am the only one living in the house,

Not if you are paying him the probate value.