Strange Clause in Will !

loiner

I’m a 1st time sole Executor for my late father’s estate. His Will contains a ridiculous (to me!) clause that I hope somebody can help me with. In the Will, his estate is generally divided equally between myself and my 2 siblings. He has instructed his Executor (me!) to give an option to purchase his house to one of the siblings. Unfortunately, he has set the buying price at a finite figure that would be approximately its market value at the time of the Will. The Will is now 17 years old and there is no market indexation. Clearly, this now puts one sibling at a great financial advantage compared with the other 2 siblings. The other 2 siblings see this clause as contrary to the whole ethos of the Will, which is to divide assets equally.

The relevant clause defines the ‘property’ as ‘all my share and interest in (dad’s address) or such other property in which I shall be residing as at the date of my death’. Following several hospital stays and increasing frailness dad moved into one of the siblings’ homes but hadn’t sold his own house. At the date of his death he had resided there for 40 days. As his ‘share and interest’ in that property was zero, I believe the sibling’s option to purchase dad's own house is no longer applicable.

What does the ‘jury’ think?

elsien

The jury thinks you needs proper legal advice, not the opinions of random anonymous strangers on the Internet.
because whatever you decide, there is the possibility that one another may dispute it.

There is of course the option for the third sibling to do a deed of variation all will agree to allow equal shares?

Jemma01

You need to think about the legal role you play as an executor of the will and the implication of the judgement you make. That one sibling can decide to challenge your judgement and get the court involve to enact the will as it is. Your dad had 17 years to update it or review it if he wanted to as he didn't die suddenly. I would suggest you seek legal advice to get an agreed deed of variation to settle this down once and for all so it doesn't appear in the future. All beneficiaries will need to be in agreement.

UnsureAboutthis

Hi

The best step right now is to have an open, honest discussion with all parties involved.

After that—and strictly before making any binding decisions or executor moves—seek legal advice from a specialist probate solicitor who deals with wills and estate disputes as their primary line of work. They will be able to give you a very good view on your position and help you navigate the next steps safely.

Case closed!

Worried_fool

Before paying for legal advice, I suggest you establish whether the current market value of the property is all that different from the figure in the will. As an executor, I will shortly be marketing an inherited property (long story), and comparable properties are currently selling for less than the purchase price in 2015! You might find that there is not much in it.

loiner

https://forums.moneysavingexpert.com/discussion/comment/82167321#Comment_82167321

We're thinking it's in the region of +£80-90K

loiner

A deed of variation is popular, even at a cost. I'm not sure I'd agree to it if I was the lucky sibling, so I doubt if that will happen. We've already had a siblings meeting where it was stated the option would not be taken up, but now the house has been cleared that sibling is reconsidering. To me, that clause in the Will clearly states the option is not applicable because of where he lived at the time of his death. Maybe I'm reading it as I wish it to be read! .

DecoChicken

Was the sibling with the option to buy the one who took him in when he became frail?

If so, perhaps that preserved the property for the will, rather than being sold for care.

Brie

Does the sibling want to purchase the house? Do the have the financial ability to do so??

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82167348#Comment_82167348

Plus how does the value of the house compare to the value of the rest of the estate? Is it most of it or just a small part of it ?

loiner

https://forums.moneysavingexpert.com/discussion/comment/82167347#Comment_82167347

Yes it was.