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Equity release

8 replies

bonkers20 · 08/05/2011 07:22

My father and sister are executors of my Mother's estate. My Mother died interstate. The house was in her name. My father has been declared bankrupt but also has a very large debt to pay. He wants to release the equity on the house.

My sister received a letter saying this is illegal.

Can my father actually release the equity without my sisters agreement (since she is named on the Grant of letters of admin)?

Can my sister be removed from the grant of letters as she doesn't want anything to do with illegal behaviour? She was only on it because the value of the Estate is >250,000 and therefore all children of the marriage are beneficiaries.

It's VERY complicated and I could write for ever on this, but does anyone know anything about this?

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NoelEdmondshair · 08/05/2011 08:44

I think you and your sister need to see a solicitor about this as it sounds complicated and you both need to protect your interests. Sorry for stating the bleeding obvious . Start with the Citizens Advice Bureau who might have an advisor or could give you a list of solicitors who specialise in probate matters - some will give a free 30 minute session.

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Collaborate · 08/05/2011 08:49

Why is it illegal?
The job of the administrators is to distribute the estate to the beneficiaries. Your father will be a major beneficiary. What he does with it when he gets it is his business, but he'll have to wait whilst the assets of the estate are sold before he gets his money.

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Collaborate · 08/05/2011 08:53

If your father is bankrupt then his debts are dealt with. If he's not been discharged as a bankrupt I don't know whether the trustee in bankruptcy can make a claim against what he inherits. He needs to seek advice. He has the funds coming to pay for it.

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bonkers20 · 08/05/2011 09:14

Thanks. Answers to questions. It's illegal because the trustees in bankruptcy know he's inherited my Mum's estate and it has to be used to pay the debt.
My father is a law unto himself. We have already spent so much on legal fees (in trying to secure my fathers future).

I just wondered whether anyone had any experience in this specific issue (applying to release equity).

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Collaborate · 08/05/2011 12:04

She can, I think, apply to be released. But I think she's better off seeking legal advice, to he paid for out of the estate. If your father goes ahead with it, it's theft. He may end up in prison.

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bonkers20 · 08/05/2011 13:24

Thank Coll. It's such a mess. Off to do some ironing and sew name labels. That should take my mind of matters.

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Collaborate · 08/05/2011 15:16

I'll send mine round. I'm sure it will help :o

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bonkers20 · 08/05/2011 15:19

LOL....sorry, too late. Just turned the iron off. Name labels to be done later. Sadly I don't have the right colour cotton to sew a button back onto DS's blazer.