Think I’m being a bit dumb

[Lurkerlot]

Can someone help me get my head around a calculation to do with inheriting a share of a house.

Say house sale value is £120k and cash assets have been distributed evenly amongst 3 siblings.

However other siblings have already had previous cash loans converted to gifts which were to be deducted from their share of the sale of the house.

Those sums were £30k to sibling 1 and £8k to sibling 2, with Third sibling (me) never having a penny.

I’m thinking of buying Sibs out of the house.

How do I calculate what I need to give to them? And how much would each sib her

I know I’m being a bit dumb with this, but recently bereaved and struggling to get my head around this, and want to get it right before suggesting buying Sibs out of the house, so any help gratefully received.

I think you get £52.66k, sib 1 gets £22.66k and sib 3 gets £44.66k because the original total pot available was £158k not just the sale of the house.

£10k and £32k, no?

120 / 3 = 40

40 - 30 = 10

40 - 8 = 32

But if the loans were converted to gifts why would they be deducted? Is that set out in the will?

10 and 32?

Total inheritance value 158k

Should have 52.66k each

Sibling 1 52.66 - 30k already = 22.66k
Sibling 2 52.66 - 8k already = 44.66k

Sums above look right. I was going to ask about inheritance tax but looked up the threshold and you're under that. Do you feel like there's going to be any animosity about the sums? If so perhaps see a solicitor and have a letter drawn up, obvs only pull it out if any probs. Will at least give you peace of mind.
Sorry for your loss, I can imagine things are tough.

Thank you.

The 158k calculation seems the way to do it.

The inheritance is surely only £120k because that's ok there is to share out...

That way each receives for £40k

£32 + £8k
£10k + £30k
£40k

Otherwise the Others end up with more...

The others got an advance?

So you give the siblings £67k and you get £53k from the house.

I agree with poster above. I added back the loan/ gift amounts and apportioned what they needed to repay and came up with the same numbers

But if we are solely talking about buying them out of the house, not the overall distribution from the estate, then we shouldn't be calculating that based on grossed up distributions. Should we?

Tho if there are no other beneficiaries once the loans were repaid the estate would have had £38k to distribute evenly. So the final cash position would have been per pp, but where the cash came from would be different. I.e. Everyone gets £40k from the house but two siblings repay £38k to the estate, the estate then divides that by three and distributes it (that's effectively what pp's calcs are jumping to, right?)to

1/3 of a £120k house cannot be worth £44.66k. The op pays £32k, the estate distributes £12.66k cash, the sibling ends up with £44.66k.

I think (bearing in mind it's a Tuesday evening) the distinction matters because it alters who is financing their inheritance. (The op vs the estate)

What does the will actually stipulate? That they have to repay these loans from the house proceeds or that these are earlier gifts to be taken into account in equally splitting the estate?

No mid net, no animosity.

Trying to sort a deal out quickly as sib 2 looking to buy in Spain before Flexit Brexit does / does not happen. Sib 1 would have the money to help his DD on her first buy, I would buy and rent the property out, so all would be happy.

Yes Random,

Others got an advance, that I was only aware of when given copy of the will.

Unfathom,

Dad loaned brothers money 6+ years ago, then in his will stated that he wasn’t to be paid back, but that his cash assets split, and the house sold.

I was to receive the first £30k, sib then receives £22k which brings us level, with the remainder being shared.i think the complication arises if I want to keep my share as equity in the house to buy the other 2 out.

Got it....

120k /3 =40000k each

40k - 30k put back to distribute =£10k
40k - 8k put back to distribute = £32k

New pot £38k to distribute £12666 each

1st person share £52666
2nd person share £44666
3rd person £22666
Totals Approx 119k