Not sure what to do - Advice if poss

coolertech

Hi Everyone.

Not sure where to start with this one, so basically my father passed away a few months ago, I lived with him in his house which is all paid up (no mortgage or anything), I came back living with him about 8 years ago to help care for my Mum who also passed about two years ago, I have no kids or partner of my own, I work full time etc.

The house is a two bed terraced property, He's left all of his estate to myself and my sister who lives with her partner (they have their own house etc)

Everything is still going through the early legal stages at the moment, I'm on good terms with my sister but I'm kind of in a difficult situation which I'll explain.

The house needs a fair bit doing to it, and all the garden is overgrown, needs stuff like new bathroom and probably a complete re plaster and new windows and door on the rear, it's not in a bad area, there is lots of new builds gone up and more going up also the traffic is quite bad but it's off the main road etc, I've lived here most of my life and kind of want a new start maybe to a different area, not even sure where to look.

We haven't had the house valued yet, I can only find one house that recently sold for around 220k mark back in 2022 but that had a lot done to it and looked completely renovated etc.

The house still has a lot of my parents belongings in which I'm still going through, along with a lot of my stuff too.

I'm getting to a point now and need a bit of general advice on this really.

So financially I have around 160k in savings, going off the recent property prices on the same road the solicitor suggested the house might not be worth more than 200k (or even less) but needs a valuation, not sure how that's going to work as the rooms are full of things.

So my sister is suggesting that I give her half of what the house is worth when it's valued in it's present state.

The alternative would be me start looking for another house, ideally I wanted something with a garage and drive, provisionally I could borrow about 85k on top of my savings.

Or do I just buy my sisters half and give me more time to get rid of all the junk that's been accumulated and work at getting the work done on the house and it be worth more should I sell it say in 2-3 years time as ideally I want to move as the area just has memories of my parents.

I really don't know what to do, I've got huge anxiety over this.

Thanks for any advice (please be gentle)

p00hsticks

Sorry for your loss.

Presumably the house is just in your fathers name ?

You'll need to get probate to sell in or get it transferred, so you need to get a valuation as at the date of death to put on the probate form.

That valuation would also give you a figure that you'd need to pay your sibling if you decide to buy them out - but whether you choose to do that or sell, split the cash and look for something else is really down to you.

You can pay for a formal 'red book' valuation from a RSCS surveyor but if you and your sister are happy to do so and the whole estate isn't in inheritance tax territory you could just get three estate agents round and get them to give you valuations and take the average. You could also aske them what (if anything) they suggest is worth doing before putting it on the market. Generally the advice is that providing the house is mortgageable (i.e.e working bathroom and kitchen) it's often not worth doing work other than a basic tidy up and clean - upgrades may make a house more saleable but the money spent won't usually be reflected in the sale price, and there are people out there who will be looking at a reasonable priced 'doer upper' that they can take thier time to d up as they want.

RobfromCornwall

This isn’t advice because I don’t know your full situation. But based on what you’ve said, this is what I might do in a similar situation.

I would get two or three valuations from local estate agents. I would continue clearing the house. I would throw lots away, but then I’m not particularly sentimental. I wouldn’t throw away all the furniture; I’d make sure that was there for when photographs are taken and when viewings happen. I would sort as much as could have the estate but I wouldn’t distribute anything. I’d get money in a separate account to my own. I’m assuming here you are the only executor. I would then get the house on the market as soon as possible. I would price it fairly, but on the low side to encourage a sale. I wouldn’t give any of my money to anybody. I would act as an executor as though I’m managing the money and assets of another person - which is what an executor does.

Then, when the sale looks like it’s almost completed I would secure somewhere else to live. This might be with friends/family or rented. It doesn’t sound like you have enough to buy without selling your late parents’ property. And managing the purchase/sale of two properties at once would be challenging anyway. Then, when the house has sold I would distribute assets to beneficiaries. I’d then figure out where I want to live and I’d then know how much I have to spend.

I would probably do this as quickly as I could, but taking my time to do it properly.

All, some, or none of these thoughts might apply to your situation and your personality. These thoughts make some big assumptions about selling the property and how easy that might be, along with other assumptions.

Good luck.

otb666

The Estate Agents will be used to doing these type of sales but will want to see Probate Granted dont worry about clutter. Once sale agreed you can then clear clutter with British Heart Foundation but sales takes many months we are currently on 8th month so plenty of time to go through clutter if you wish. Do not forget to check all pockets of clothes for hidden money. The people here are very helpful to help you obtain probate. I was a bit sad when I read your message and you have obviously done you folks proud and now its your time.

Savvy_Sue

Couple of thoughts / questions

Before you returned home, did you own a property, or are you a First Time Buyer? If the latter, you want to avoid the house becoming 'yours', as that will lose your FTB status. Sell it from the estate, don't transfer it into your name.

Clearance: yes it takes time, and it's really hard work - emotionally and physically. Can your sister help? AND after a first trawl (pocket checking etc) consider using a house clearance service.

bobster2

A few tips…

• Valuation should be possible even if house is full of stuff.
• If you're struggling to throw stuff out and not sure what to keep - as an interim step get a big storage locker. They often have deals for 6 months. So then you can sift in two stages. Some people might say this means just procrastinating - but sometimes it's the quickest way to declutter a bit and get the house sold.
• If you're selling - don't make any improvements (aside from fixing obvious problems like leaks etc).
• As @Savvy_Sue recommended - sell the house from the estate. Don't transfer deeds to your name. Then divide the proceeds with your sister when sold.

RAS

You and your sister are the both beneficiaries. Who did he appoint as executor(s)?

It is the executors' responsibility to execute the will as written by dad.

Does it leave "the house", or does it refer to his assets to be converted to cash and shared? You may want to type out the exact clause or share the will?

If you are the sole executor and joint beneficiary, you need to be mindful of self-dealing. As sole executor you may also want to manage in a way that is compliant but is explicitly seen to support your relationship with your sister even if that extends beyond the legal requirements? If you are joint executors you have to work with your sister.

The market isn't the same as 2022. For a property of this sort of value the usual practice is to get three quotes from estate agents and work with the top of the range. Because if you pick a lower value and the house sells for more the estate may have to pay CGT. Is your sister happy with that? Or would she want a (paid for) RICS valuation? Talk to her? If you want to stay longer it looks like you have enough capital to buy her out if you want to?

If you are joint executors she needs to be helping with the house clearance. If not, have you asked if she wants anything from the house? Chattels have nominal value. There may be things that hold special memories for her even if they are just charity shop fodder to you? One family each took a sweat shirt from the unopened pile, another shared books that meant something personal.

If you are living in the house, you need to pick up CT, claim the discount, and utilities as you benefit directly.

Do not muddle finances by expending your money on the house before distribution. If there are very specific issues in the interim like wiring failures or boiler problems then those can be paid for from the estate. A deep clean might be justified. But don't improve the house.

Generally improving a house in which you are not going to live longer term is not financially sensible unless you are skilled in a relevant trade. You've obviously been caring for your parents but if the garden is overgrown now, is it something you now relish tackling or is something you'd need to employ someone to maintain?

You been caring for a long time and need time to think about the future but also need to be "fair" to your sister. What are her expectations? Does she need the money urgently, or is she happy to wait a little to give your more time to work out where you want to go?

Hundreds of thousands of people sell houses and move into the next one every year. It's counted as one of the most stressful processes you go through (ask your sister). Caring, grief, executing an estate and moving house is a lot to pile on top of each other.

But spending money improving a property you intend sell isn't the best use of your personal resources either. If you you do stay a while, do the minimum required to keep the place water-tight and safe and anything that cheers you up, perhaps a coat of paint in a couple of rooms and new to you window covers?

And spend some time visiting places you might want to move to?

Cubicsrube

I'm so sorry for your losses. My partner and I have been through similar, losing all four parents in the space of as many years and being their executors. I've got no legal qualification but have been through the process a lot!, so that's where my advice is coming from.

The thing that jumped out at me from your post is that your sister is asking/you are considering buying her out of her share in the house now, from your own savings. This seems a very unwise thing to do, given that you are leaning towards selling up and moving (and that you don't know what it might sell for). She may be keen for the money now, but unless you are definitely determined to stay and make the place your own long term, you should not be put under any pressure to buy anyone out. Beneficiaries have to wait for their distribution until the estate is settled, that is the way it is.

Executors should not drag their feet, but the process can take quite a while: getting probate, putting it on the market, completing a sale etc can all reasonably add up to 6 months -1year. That means that you can begin the process and still have some time to go through mum & dad's things, grieve, have a good clean, tidy the garden, etc. As others have said, don't renovate if you might sell it: do small fixes and cosmetic things only that make it a bit more liveable for you and a bit more presentable for sale.

The two other things that have been said above that I would underline:

• if your sister is also an executor, she needs to be involved in the process of probate and getting the house in decent order to sell. If she's not, invite her to come over so you can explain the process to her (so she understands why the wait) and also go through mum & dad's things together, so she can choose any that she wants to take home.
• Separate the finances asap. If you haven't alresdy, set up an executor account at a bank (with your sister, if she's co-executor), and arrange for any cash your parents had to be paid into that. Then all death and estate related expenses come from that account (probate application, building insurance, repairs, house clearance service etc). While you personally take over the council tax, utilities etc. as long as you are living there. When you get probate and come to sell the house (straight from the estate as Savvy Sue advises), all of the associated costs, like estate agent and solicitor fees, will come from the executor account. This will help greatly in keeping track of things and showing the accounting trail when you eventually come to distribute the money.

My mum died last summer with an offer on her flat already in hand - we complete the sale tomorrow, 11 months later. That's how long it took to get probate and a complete chain in place. So my point is: don't delay, but don't worry. You've got time to breathe, make decisions, and say goodbye. Good luck.

coolertech

Hi Everyone thankyou for your replies.

Just to answer a few questions.

I didn't own or have never owned a house, I rented with my ex years ago and we parted company, at the time financially I wasn't able to afford to buy or rent anything for myself and nearly had a breakdown with what my ex partner did so my parents suggested I moved back home (They weren't ill at this point but that happened not long after, I got a better job and had shares with the company I used to work for so got a chunk of savings which I invested, plus I saved a lot of the time living back home.

I did what any son/daughter would do and help care for my parents (hospital, home help, shopping, meals etc), i'm probably the reason none of them went into a care home tbh, my sister wasn't much help with all this, she chose to visit once every 3 months, I'm on talking terms with her but there is a sense of "I want my money" in the air now.

When I moved back home I brought a lot of things with me, given all the few years of working and caring for my parents I've not really had a chance to sort out, my main focus has been caring for my ill mum then my not long after my dad got terminal diagnoses, I do have a storage locker but this is full already which I've been trying to get down, as everyone knows working full time, caring for ill people takes it's toll so really all I wanted to do after each day is sleep.

My mum and dads things I've been sorting through and I'd say I'm winning on that front, however I've not even got to my stuff yet, there is litterely a room full of things, (which are valuable and not charity stuff, but I need to ebay and the likes)

I'm kind of leaning on the thought of giving my sister half the money and then working through things giving myself time to also make improvements to the house over say a 2-3 year window, I'm not sure if doing this will work in my favour as I'm going to assume it's valued lower given the work that is needed, i'm a little DIY savvy so can maybe do a few things.

If I do choose the "give my sister her share" option obviously I'm going to loose any FTB rights, but I will be mortgage free at this point, I have in my mind somewhere down the line if I buy the share of the house to keep saving (I'll still have quite a chunk left) and then maybe upgrade to something new where they accept a trade in type thing?

Sorry if this is long winded, my head is all over the place at the moment, I keep having moments of upset and last night I didn't get any sleep, today I've woken with a headache with all the stress of having to move all the contents of the house.

I appreciate all your kind words

coolertech

Just to add that myself and sister are the executors of my dads will, sorry forgot to mention this

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82039286#Comment_82039286

I'm kind of leaning on the thought of giving my sister half the money

Almost every reply you got, said not to do this.

and then working through things giving myself time to also make improvements to the house over say a 2-3 year window, I'm not sure if doing this will work in my favour as I'm going to assume it's valued lower given the work that is needed, i'm a little DIY savvy so can maybe do a few things.

If you do go down this route, do not underestimate the cost of any building work, even if you DIY some of it.