Help - Monies given before death for an annex that wasn’t built

Keep_pedalling

It does sound more like a loan than a gift in which case it will still be part of the estate regardless of who long ago the money was transferred. 

Your father should never have appointed an executor who was heavily in debt to him, it is now going to make things very difficult for you. You need to take legal advice and you may eventually need to get him removed as an executor, which will not be a cheap thing to do.

bobster2

Emmia said:

Does this relate to your other thread?

https://forums.moneysavingexpert.com/discussion/6605081/help-monies-given-before-death-for-an-annex-that-wasn-t-built#Comment_81434550

It's really best to keep things in a single thread to get the best "advice" for the situation.

Indeed!

The other thread refers to money that has already been given to someone to build an annexe. Whereas this one refers to compelling executors to loan someone money after death to build a house.

Rather confusing!

Flugelhorn

bobster2 said:

Emmia said:

Does this relate to your other thread?

https://forums.moneysavingexpert.com/discussion/6605081/help-monies-given-before-death-for-an-annex-that-wasn-t-built#Comment_81434550

It's really best to keep things in a single thread to get the best "advice" for the situation.

Indeed!

The other thread refers to money that has already been given to someone to build an annexe. Whereas this one refers to compelling executors to loan someone money after death to build a house.

Rather confusing!

I am getting confused - beginning to sound like more that one loan and more than one property - are they sure this isn't in IHT territory?

Emmia

https://forums.moneysavingexpert.com/discussion/6605081/help-monies-given-before-death-for-an-annex-that-wasn-t-built#Comment_81433567

The OP has another thread on what may (or may not) be the same issue.

Grumpy_chap

OP - sorry to hear about your loss.

What is the total value of the Estate (after settling any debts and IHT)?
Who are the Executors?
How many and who are the Beneficiaries?
Are the Beneficiaries all eligible to an equal distribution from the Estate?

Having a loan that is outstanding with no clear timeframe for the loan to be repaid will make it very difficult for the Executors to do their job and resolve the matters of the Estate in a sensible manner.
It will all get further complicated if the loan remains outstanding at the point of your Brother passing.  It will then make it difficult for his Executors also.

tacpot12

Whether or not the pre-death agreement can be enforced depends on the circumstances. You need professional legal advice as to whether your brother can enforce the agreement. You should also consider whether your brother has the money needed to take the matter to court, and whether forcing him to do so would destroy your relationship or create other problems within the family. 

Asking an internet forum for legal advice in this context is not sensible. You won't get a reply you can rely on. 

Cluffy01

bobster2 said:

So the question is - can an agreement signed before someone's death compel the executors of an estate to loan money from the estate to someone - i.e. establish a creditor/debtor relationship.

In terms of practicalities - who are the executors? who are the beneficiaries of the will? What is the total value of his estate?

That’s the question. 

There are three executors who are the only beneficiaries - myself and my two siblings. The estate is the house (worth approx £500k) and approximately £50k in savings. 

Cluffy01

Keep_pedalling said:

Who has your father appointed as executors? Has this new house been built? If it is built and has your brother sold his other property? Is IHT likely to be an issue? 

There are three executors who are also the beneficiaries. The new house has not been built yet and the existing house has not been sold. 

IHT is not an issue. 

Cluffy01

Emmia said:

Does this relate to your other thread?

https://forums.moneysavingexpert.com/discussion/6605081/help-monies-given-before-death-for-an-annex-that-wasn-t-built#Comment_81434550

It's really best to keep things in a single thread to get the best "advice" for the situation.

It does yes. Sorry I’m new to posting. 

Cluffy01

Grumpy_chap said:

OP - sorry to hear about your loss.

What is the total value of the Estate (after settling any debts and IHT)?
Who are the Executors?
How many and who are the Beneficiaries?
Are the Beneficiaries all eligible to an equal distribution from the Estate?

Having a loan that is outstanding with no clear timeframe for the loan to be repaid will make it very difficult for the Executors to do their job and resolve the matters of the Estate in a sensible manner.
It will all get further complicated if the loan remains outstanding at the point of your Brother passing.  It will then make it difficult for his Executors also.

Thank you. 

There are three executors who are all equal beneficiaries. Myself and my two siblings. 

The estate is worth approximately £550k in total.