Family issue - money related

[iamaswashbuckler]

So I need a bit of advice as essentially we have just found put today that my husband has been used as a "Landlord" on a property that was owned by his late father. He knew nothing of this and has now received a letter to say that he is liable for £1100 council tax on the house although he has never lived in it. His brother and wife lived in it up until about 6 months before it was sold and claim that they had paid this but the council says otherwise. How do we play this as essentially if he tells the truth then he brother and SIL will potentially be in the shit which he wants to avoid, but at the same time he doesn't want to be thought of as the landlord or liable for this debt. Any advice?

@ChicCroissant yes that is exactly what they did

Legally the executor is the owner though! They are correct! Perhaps you've misunderstood the responsibilities of being an executor, is he the only one?

Thankyou @ChicCroissant, this was what I was after as I couldn't definitively find anywhere that said that! However, he might be classed as the owner but he was never a landlord as his brother lived there rent free, or does the fact that someone else lived there inadvertently make him a landlord too?

It is the estate that owes the money though, they have contacted your DH because he represents the estate as the executor.

I'm not legally qualified btw, my DH has been an executor numerous times and it's a pain so your DH has my sympathy!

@ChicCroissant he was the only one, as his brother didn't want the hassle 🤨

It's right that he is owner and landlord, but it's not in his personal capacity- it's as administrator of the estate (as there is no will). The tax on the rent has to be paid. Did the brother keep all the money?

He didn't actually own it though as it belonged to his late father and the deeds were never transferred, it was a probate sale when it was sold

I inherited my late father’s house and the deeds were never changed but as the beneficiary I was still liable for the council tax until it was sold six months later. Your husband may well be liable for part of the council tax.

Transferring the deeds makes no difference to ownership unfortunately

Cross-post! It is a hassle, I'm not surprised

I don't think you have any fraud to worry about by the sound of it. Your DH has been named but only as the executor of the estate.

Are there enough funds in the estate to pay the bill?

Have a look at the HMRC website to see if there is any guidance on there. Hope you can sort it all out quickly and easily

@Namechangeforthiscancershit no rent was ever received as he lived there rent free until they were ready to sell it which was about 3 years later. The proceeds were then split 50/50 after supposedly all other bills, but seems this one wasn't included!
Ah well looks like we will have to pay it as his brother has spent all his proceeds and not able to help out so I guess we better hope there are no other debtors out there!
Will be disputing the tenancy agreement though as that is just plain fraud!

You don’t have to pay it. The estate pays it. That much seems clear- as the executor he is the effective landlord.
What will disputing the tenancy agreement achieve? You seem to be missing the point I’m afraid.

And where has the housing benefit that BIL and SiL received gone?

That was a fraudulent claim

The estate has now been divided 50/50 between my husband and his brother @timeisnotaline and as his brother has no money left then it falls to my husbands share of the estate.
Exactly @ChampagneCommunist, you get it 👍

Your dh needs to tell him to find the proof they paid up to when they say they did and then find the other half for the time the estate was liable. A fraud case with HB is likely to cost them a lot more.

Agreed @OhLookHeKickedTheBall that would be the most painless option...

There is specific rules on probate sales and I believe it's 1 year from the date probate was granted (typically 6-9 months after death) and must have remained empty. The estate is liable in this scenario.

Just checked it's 6 months from probate being granted and must remain empty from the owners death

Can you not write back and say the estate has been distributed and there are no funds in it to pay the outstanding amount?

We had a tax demand for my late father, we replied as above and HMRC closed their case.

You can perhaps do as myomaginarycathasfleas suggested we replying as the estate.
Failing that Ok the estate has been distributed. Therefore your dh and his brother to my mind owe half each. I’d pay half and tell bil the half is on him.
I completely get that they have committed benefit fraud. I still don’t know what reporting them would really achieve for you- would petty vengeance be worth it? However I would probably threaten reporting if they didn’t just pay half.

I would tell the brother that you will need to pay half each to settle the account. If he can’t pay then you’ll have to disclose full details to HMRC regarding the benefit claim. That might rattle his cage into finding the cash.

I would try getting half off the brother, but the responsibility lies with the executor - there's no point in saying the estate doesn't have any money, he'd be personally liable in that case. It is a more onerous responsibility than people realise.

Just to clarify - he'd be responsible because he'd distributed the proceeds of the estate before checking if there were any debts. It is the estate's debt.

Just to update they have agreed to settle the account jointly which is the best outcome all round, thanks for all the useful comments they really helped.

Ah, that is good news OP!