Issue with the Will (not good!)

poppystar

If there really are no residual beneficiaries and there is not sufficient money to pay all the beneficiaries I would have thought that all inheritances would be reduced by an equal amount. Why OP do you believe it will have to be paid by you? 

RAS

OP

Does the will say "I leave relative one £xxxxk, £yyyyk to relative 2, and the remainder to lilio?"

Or does it say, "I leave my estate (or a major chunk of the estate) divided between relative one, relative 2 and lilio (equally or in precise portions)"?

tls123

Is this will what was drawn up by the same household name firm of legal services you are using now for probate and the firm which you were not confident in after their trust pilot reviews online? If so I would be concerned and I would be using different solicitors for probate, 

Grumpy_chap

Lilio8 said:

Thank you for your reply.

I think that I'll have just enough left over to distribute to the 2 blood related beneficiaries (I'm the non-blood related beneficiary) after paying IHT and the sale of the property. But I'll probably have to take it out of my inheritance and I'm assuming that the house will not sell below £300k.

It is not clear why you think you will have to take anything out of your inheritance.

The way it works is the Estate settled debts and IHT and then the Estate is distributed as per the Will.

If the house is only worth £300k, is the Estate even in IHT territory?

Does the Will distribute fixed values to Beneficiary 1 & 2 and then the residual to yourself, or doe the Will distribute percentages to Beneficiaries 1 & 2 and then the residual (so another percentage) to yourself?

Why do you think any of the Estate is not covered as being for the Residual Beneficiary (so yourself) and instead that part falls under intestacy?

user1977

I'm guessing that the Will allocates certain proportions of the residue, but for one reason or another fails to add up to 100% of it?

Grumpy_chap

user1977 said:

I'm guessing that the Will allocates certain proportions of the residue, but for one reason or another fails to add up to 100% of it?

In which case, the proportion that is unassigned would not come out of the OP's share.  Each of the allocated proportions would be smaller and then the unallocated proportion is subject to the rules of intestacy.

It would help if the OP gave better information about what the Will actually says.

Particularly as the OP says:

Lilio8 said:

I think that I'll have just enough left over to distribute to the 2 blood related beneficiaries (I'm the non-blood related beneficiary) after paying IHT and the sale of the property. But I'll probably have to take it out of my inheritance and I'm assuming that the house will not sell below £300k.

Does the Will state "£sum to Beneficiary 1, £sum to Beneficiary 2, residual to OP" but there is nothing left after the two fixed amounts have been distributed?

Does the Will state "33% to Beneficiary 1, 33% to Beneficiary 2, 33% to OP" thus leaving 1% unallocated and subject to intestacy rules?

Lilio8

Keep_pedalling said:

Lilio8 said:

doodling said:

Hi,

As has been said, we would need to see the wording to make detailed comments but usually assets that are not specifically allocated go to the residual beneficiaries.

It is quite unusual for a will to have no residual beneficiaries, or to be constructed in such a way that some assets cannot pass to them.

From what you have said about costs, it sounds like you are a (the only?) residual beneficiary - is that the case?

If the other beneficiaries are bequeathed a specific amount (or a specific asset) then they don't need to know about this unless there is a risk that there is insufficient funds to meet their bequests (after costs and IHT which are deducted first).

Thank you for your reply.

I think that I'll have just enough left over to distribute to the 2 blood related beneficiaries (I'm the non-blood related beneficiary) after paying IHT and the sale of the property. But I'll probably have to take it out of my inheritance and I'm assuming that the house will not sell below £300k.

Why do you think it should come from your share alone? Are you the sole residual beneficiary or have you been left a specific sum? Have the blood relatives been left a specific amount or are they residual beneficiaries?

Thank you for your reply.

'Why do you think it should come from your share alone?'  The maths has it that without a portion of the estate available, I'll be missing a few £££££s. And the only way, that I'm aware of, to pay the beneficiaries is to use some of my inheritance.

'Are you the sole residual beneficiary or have you been left a specific sum? Have the blood relatives been left a specific amount or are they residual beneficiaries?'

The 3 of us have been left with a specific sum.  As I understand, the residual estate is gifted to the 3 of us once I'll be done with paying all that needs to be paid (tax, debts, bills, legacies, etc..).

doodling

Hi,

The question that is not being answered is "Why does the portion of the estate that you state is "not available" not fall into the residual estate"?

Usually wills are constructed along the lines of:

I give X to A
I give Y to B
I give Z to C
Everything else is given to G, H and J in these proportions. (This is the residual estate - the bit left after specific legacies have been dealt with).

It is very unusual to end up with a situation where something doesn't fall into the "everything else" clause.

You say you have had legal advice, so we must take your word for it that you understand how this has happened but looking in from the outside, without the benefit of the detail, it looks very odd.

Grumpy_chap

Lilio8 said:

Thank you for your reply.

'Why do you think it should come from your share alone?'  The maths has it that without a portion of the estate available, I'll be missing a few £££££s. And the only way, that I'm aware of, to pay the beneficiaries is to use some of my inheritance.

'Are you the sole residual beneficiary or have you been left a specific sum? Have the blood relatives been left a specific amount or are they residual beneficiaries?'

The 3 of us have been left with a specific sum.  As I understand, the residual estate is gifted to the 3 of us once I'll be done with paying all that needs to be paid (tax, debts, bills, legacies, etc..).

Lilio8 said:

my solicitors pointed out about an ambiguity, an error
The error consists in a portion of the assets not been allocated to anyone. This will mean that this portion will be 'intestate' and I will not be able to use it since it'll go to a beneficiary.  This translates for me to a big hole of several £thousands that I will need to fill in somehow!

This thread still seems to have some apparent gaps in the completeness of information shared.
It seems odd that the OP has a Solicitor assisting them with the administration of the Estate and yet the queries have not been concisely advised on by the Solicitor.

I understand the OP's comment about not wanting to give all the details of the Will, but some more details will be required before the situation can be fully clarified.

The process is that the Estate pays funeral first, then debts and taxes.  If the Estate is subject to IHT, the IHT is paid before anything is assessed for distribution - debts and taxes do not fall on just one Beneficiary to pay.

OP - can you clarify some further information please?

1. How large is the Estate?  Is IHT definitely due?  
2. Was the property mentioned upthread with a value of £300k the deceased home?  (PPR = Principal Private Residence)
3. What is the unallocated portion that is to be considered as "intestate" and why is this portion not part of the Residual Estate?  (Obviously, it sounds as though the Residual Estate is NIL in this case.
4. For the three Beneficiaries, have they simply been left fixed sums?  £X to Beneficiary 1, £Y to Beneficiary 2, £Z to Beneficiary 3 (OP)?
5. OR, are the sources of the funds for the Beneficiaries identified?  £X from sale of house to Beneficiary 1, £Y from sale of house to Beneficiary 2, £Z (unspecified) to Beneficiary 3 (OP)?
6. What are the relationships between the deceased and the Beneficiaries?  Is this Beneficiary 1 and 2 are the children of the deceased and Beneficiary 3 (OP) is the new partner of the deceased?

This article gives some guidance on what happens when the Estate is too small to meet all stated gifts:
https://www.gnlaw.co.uk/news/what-rights-does-a-beneficiary-of-a-will-have/

Information on order to make payment is here (item 3):
https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/dealing-with-the-debts-of-someone-who-has-died#
 

Keep_pedalling

Lilio8 said:

Keep_pedalling said:

Lilio8 said:

doodling said:

Hi,

As has been said, we would need to see the wording to make detailed comments but usually assets that are not specifically allocated go to the residual beneficiaries.

It is quite unusual for a will to have no residual beneficiaries, or to be constructed in such a way that some assets cannot pass to them.

From what you have said about costs, it sounds like you are a (the only?) residual beneficiary - is that the case?

If the other beneficiaries are bequeathed a specific amount (or a specific asset) then they don't need to know about this unless there is a risk that there is insufficient funds to meet their bequests (after costs and IHT which are deducted first).

Thank you for your reply.

I think that I'll have just enough left over to distribute to the 2 blood related beneficiaries (I'm the non-blood related beneficiary) after paying IHT and the sale of the property. But I'll probably have to take it out of my inheritance and I'm assuming that the house will not sell below £300k.

Why do you think it should come from your share alone? Are you the sole residual beneficiary or have you been left a specific sum? Have the blood relatives been left a specific amount or are they residual beneficiaries?

Thank you for your reply.

'Why do you think it should come from your share alone?'  The maths has it that without a portion of the estate available, I'll be missing a few £££££s. And the only way, that I'm aware of, to pay the beneficiaries is to use some of my inheritance.

'Are you the sole residual beneficiary or have you been left a specific sum? Have the blood relatives been left a specific amount or are they residual beneficiaries?'

The 3 of us have been left with a specific sum.  As I understand, the residual estate is gifted to the 3 of us once I'll be done with paying all that needs to be paid (tax, debts, bills, legacies, etc..).

I am really struggling with what you mean by a portion of the estate being unavailable. If it has not been specifically willed to anyone it forms part of the residual estate.