Do I get more money?

[bridgetjonesmassivepants]

Can't work this out. I've changed a few details so it's not very identifiable and posting here for traffic.

Recently my mum died and my sister and I were left with £150,000 between us. (Bungalow had already been sold as mum had just moved into a nursing home) Will says everything is split between us two. But, my sister had a loan for £8000 from mum when she sold the bungalow to buy a car, she had only paid back £1000 of this when mum died.

Question is, how is the £150,000 split taking into account that sister has got an extra £7000?

When was the loan? Within 7 years of your mum's death?

I agree that your sister shouldn’t get the free car at all.
You should take 7k out of the total inheritance for yourself to even this up then split the rest 50/50 (which will be 71,500 each)

Pengggwn
Get ready to fall off your chair.....
I agree with you. 😂

Sorry, not the probate form, the IHT form, but you need the numbers for that for the probate form.

It is all relevant though isn't it. Not everyone is in a position to forget about £3500 either. That is a large sum of money. For me, that amount would mean the difference between being able to pay off my mortgage or not.

The principle is, that the money was owed by the sister, there is a proper loan agreement and the mum wanted a 50/50 split. If she had given the daughter the money, then there would be no loan agreement, so the mother clearly did not want OP to lose out and for her sister to have more.

The OP's mother has effectively already decided that OP should get more, by having the loan agreement. She did not want to gift the money to the sister.

The OP said it was part of the proceeds from selling the bungalow so preseumably quite recent but the 7 year thing isn't relevant nanny as this was a repayable loan, not a gift

Maybe you could ask her how she wants to deal with the loan?

@bearbehind - with you there! The maths on this thread is appalling. No wonder people fall out about this kind of thing when they can’t understand and then agree on basic mathematical concepts.

Glad there is a consensus on the maths.

OP, It's not greedy or mean to want to sort out the estate correctly. I would do the same.

If there is a solicitor dealing with the will you should consult them. If there is no proof then you've had it. I can see your point. I think she should pay the money back unless you've had financial help from your Mum too. But even if she pays it back the money will be down by £8K to be split so she'll still gain. I'd be annoyed in your position.

Why do people keep saying £3500, when it's £7000.

I’d leave it tbh
You need your sister right now
Maybe mention it but accept that you might not get that money back
You’ve got 75k- concentrate on that

Why do people keep saying £3500, when it's £7000

The debt owed is 7000
Sister owes that to her mother's estate, not to OP
As a beneficiary of the estate, sister then reinherits half of that amount, or 3500.

So both figures are relevant.

bestthings - the £7k is owed to the estate. The estate is to be split 50/50, so each sister gets £3500.

But even if she pays it back the money will be down by £8K to be split so she'll still gain

Why is that? The £7000 (£1000 has already been paid back) would simply be added onto the total estate.

Op’s Sister owes £7000 which she can decide whether to pay back out of her share, or pay the estate, ie herself and OP, back in instalments.

Either way, they both end up with the same amount.

why do people keep saying £3500, when it's £7000.

Because the OPs share of it is only £3.5k.

The sister would keep the other £3.5k whatever happens so it's only the difference that is in question.

I still think it's cheeky that the sister gets half her loan back. Why should she. She should pay OP the £8k and then split the inherited money. Why would anybody write of £3.5k or £8k.

One thing you do need to be aware of is that if your sister was repaying in regular installments through the bank, especially if from abroad, is that HMRC may investigate your declaration of probate (they could suspect ££ squirrelled away abroad and this was interest payments, for example). So it would probably be in your interests to divvy up taking the loan into account.

I see she's already paid back £1k. give the lot to Oxfam!

I still think it's cheeky that the sister gets half her loan back. Why should she. She should pay OP the £8k and then split the inherited money

But the £8k would have been part of the estate anyway. So even if she hadn’t taken the loan, she would have ended up with £4K of that.

Of course the sister is entitled to half the outstanding loan back. Why on earth would you think that that is incorrect!

And it's £7k now not £8k FFS, she repaid £1k already.

Why is this so difficult for some people to grasp?

The total estate would have been £157k (£150k left plus the £7k owed by the sister)

Each sister is therefore entitled to £78.5k

As the sister has already had £7k she only gets £71.5k out of the £150k that is left.

The OP gets £78.5k.

You've missed a step bear. If they follow the route you've explained, sister has to physically pay £3.5k to the estate in order for their to be the full amount owing to the OP available.

Argh. There not their!

In theory yes maggie, in fact she should probably pay the whole lot back first but presumably she doesn't have the money so it would be split as I listed above.