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Help - Monies given before death for an annex that wasn’t built
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This sounds like a really bad idea. 3 questions come to mind
1) Is a promise to make a loan in the future enforcable? eg a mortgage offer can be withdrawn with no come-back on the lender
2) Does an executor have the authority to make a loan from the estate?
3) What happens if the loan is not repaid? Could the executor be held liable?
I dont know the answers - agree that you need to get a proper legal advice.1 -
Cluffy01 said: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?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.0 -
Cluffy01 said: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.There are three executors who are all equal beneficiaries. Myself and my two siblings.The estate is worth approximately £550k in total.
The £500k loan is the vast majority of the estate, and your sibling is unwilling to hand back most of the money he has been gifted by your father... A bit of a pickle.
I think you're going to need legal advice on this, if he won't hand the money back willingly, as it may be you need to force this via the courts - which will cost all of you money.1 -
Keep_pedalling said:Cluffy01 said: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?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.0 -
Cluffy01 said:Keep_pedalling said:Cluffy01 said: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?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.
Savings = £50k
Loan = £500k
Total = £1.05M
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Flugelhorn said:Cluffy01 said:Flugelhorn said:It doesn't sound like it was a GIFT to this person (it was handed over so a specific task could be done for your father's benefit) or at least if it was then it was a gift with strings attached (reservations) ie that it was for the purpose of building your father's annexe.
if it was a gift given in the last 7 years it would be considered part of the estate for IHT anway.Thanks for your reply.
Has he still got the money?? or has it been spent elsewhere? -0 -
Cluffy01 said:Flugelhorn said:Cluffy01 said:Flugelhorn said:It doesn't sound like it was a GIFT to this person (it was handed over so a specific task could be done for your father's benefit) or at least if it was then it was a gift with strings attached (reservations) ie that it was for the purpose of building your father's annexe.
if it was a gift given in the last 7 years it would be considered part of the estate for IHT anway.Thanks for your reply.
Has he still got the money?? or has it been spent elsewhere? -
Edited to add - now seen your other post and I'm confused. In this thread you seem to say that your father wanted the money to be returned to the estate should he die, but in the other thread it seems to say that he wanted the loan to go ahead even if he died?0 -
Keep_pedalling said:Cluffy01 said:Keep_pedalling said:Cluffy01 said: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?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.
Savings = £50k
Loan = £500k
Total = £1.05M1 -
The money has been handed over, before plans, planning consent and the engagement of the builder. The father died before any works took place.0
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This thread says to build an annexe.
On the existing house that father and son live in?
Other thread says to build a house, sell current one and repay money?0
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