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

Savvy_Sue

I think, given this clarification, that I'd ask for the other thread to be closed (not sure merging would help). 

Just for clarity (because it will help you to have all the facts straight before speaking to a solicitor)

•  Dad had NOT sold his house before death, so had NOT given your brother 500K?
  
  
• Dad HAD given your brother 100K towards the cost of an annex?
  
  
• Your brother has purchased a house which he intends to demolish and rebuild while living in his original house?

Is there a letter of wishes relating to the 500K? Is there anything else in writing relating to the yet-to-be handed over loan, confirming that it is a loan to be repaid? 

This is not going to be cheap unless your brother backs down, which of course he may do if he receives a letter from a solicitor pointing out the actual legal situation. I might, in your position, be prepared to give up any hope of an actual inheritance in the pursuit of this goal: I'd certainly want that possibility pointed out to him, because I'd expect it to reduce his actual inheritance too. 

Does he have a more reasonable wife he'd listen to?

Flugelhorn

@Cluffy01 I hope this gets sorted out and you get some good advice - must say it sounds like your dad sadly didn't get all the advice needed when he started out on that route with loans and gifts 

QrizB

Cluffy01 said:

Yes he was a widower. IHT is not an issue as we have my late mums nil rate band. 

House = £500k
Savings = £50k
Loan = £500k
Total = £1.05M

The house would be sold and then the money loaned. There is no extra £500k. 

So the estate would total £550k   

The estate's £650k, if you include the "asset" of the loan repayment owed by your brother.

Other than that I agree that you need professional legal advice regarding the right mess you've been left to sort out.

RAS

Various MSErs who are pretty clued up are confused and none can see the relevant documents. You need to engage with an experienced STEP solicitor, at the very least.

QrizB

Not that it helps with your problem at all, but I have a question:

Cluffy01 said:

So my brother didn’t have to move out of his current house my father said he would sell his home and loan my brother £500k for him to build this new house. Then when he and his family move in along with my father they would sell the existing house and pay my father back the £500k.

Where was your father planning to live after selling his house and before your brother had built the new house and annex?

sheramber

One minute the brother has been given £500k to repay when he sells his house. 

But then  you say the house WOULD be sold and the money loaned. 

Then Father has loaned brother £100k.

Has house been sold ?  If not then brother hasn’t had the loan of £500k. But he has has had £100k.

If house has not been sold and £500 k not been given what is the question?

Does brother think he should still get £509k when the house is sold, rather than 1/3 share?

Does father’s intention to lend the money due with him?

 

sammyjammy

Don't forget to remind him that all solicitors costs will come out of the estate!