Inheritence and house sale

[Lanzarotelady]

Interested in others opinions here - what's fair?

Mum dies leaves house worth 160,000 and £60,000 in bank

3 adult children

1 living at home - never had a mortgage - has had a nomadic life style
2 living in a house, paid for - single
3 living in a house -paid for- married with children

1 know he needs to get a mortgage, but with no deposit and no real credit history is struggling to get one

He has proposed to use the £60,000 in the bank as a deposit, smaller mortgage etc, then when the house is sold, the other 2 get their share of the house, their share of the money in the bank, ie £80,000 each and he gets what is left.

I don't know if this is fair, open to abuse, favouring one above the other

What do you all think

Why are you getting 80k each and he is getting 60k plus ‘whatever is left’

why aren’t you getting 60k each then splitting whatever is left? Is there something he knows about the house that you don’t?

Also, what if the house is build on shale, where it needs to be ripped up to get a mortgage, or another issue like this that makes the house only suitable for a cash buyer. The house may be impossible to shift. And don’t forget we are watching Trump shit on the global economy, I wouldnt be betting everything on the house being worth enough for it to be fair, even though it most likely will be.

If you let him have the instant cash, anything could happen. He could use it all on something (like a deposit for him) and then the house sells for less so you miss out as you can’t get any money back from him. There could be £10,000 of repairs needed and he says it’s not his responsibility, just you other two.
He will just have to wait for his share of the money like you. He can rent for six months while the house is sold and all money is gathered, then split three ways. Stand firm!

Mum died over 2 years ago, probate all settled, just the three of them to make any decisions

Use some of the £60k to repair the house and get it ready for sale. Then split it equally after all costs. He can live there until the sale.

Split the £60k 3 ways. He uses that £20k to get himself housed, either deposit or renting.

Sell the property and split 3 ways.

It's incredibly simple this way and what he's proposing is unnecessarily complicated.

I agree

All the estate - house + cash - must be split equally, if that is your mother's will;.

If Siblings 2 and 3 want to subsidise a sibling who's made some rather unwise choices in terms of his/her housing security (Sibling 1), then they should do a transfer. That is their choice to do so, but it should not be dictated by Sibling 1.

But no way should Sibling 's proposal be entertained as a fair or compulsory way to divide your mother's estate.

Hang on, this has been rumbling on for over 2 years?

Has work being done to the house to make it saleable?

If he's been having free rent for over 2 years then he's being a CF bringing up wanting a variation at this point.

I would not advise doing anything to accommodate waster nomad sibling to the possible detriment of the other legatees. He should be paying rent to the estate if he is still living in the house. Why is it not on the market already?

There is no reason the sibling can’t buy a property as part of a chain I.e. family home sold buy property on same day.

The that's exactly what has to happen. The executor(s) must make it happen.

Nomad is a grown arsed fucking man who’s made his life’s choices. He’s obviously been pampered to my mother but that’s not his siblings fault.

Splitting 3 ways is whats in the will and 3 ways it should be.

When my mother's estate was distributed, interim payments (ie from cash balances/investments) were split equally 3 ways. Then the final payment was made once the house was sold and all disbursements had been paid. If 2 siblings let sibling 1 take £60k initially, they are effectively lending sibling 1 £40k. I wouldn't do that without a formal loan agreement saying it is to be repaid from the house sale proceeds.

The ‘nomad’ sibling has been on easy street, not having to commit to working, saving, paying a mortgage like other adults do. Why should he be given a wad of cash now for the life choices he’s made?

This.

(I'm guessing Siblings 2 & 3 are female ...)

I don't see how he could be allowed to access the cash now until probate is sorted.

after that the executor would not be able to give it to him without safeguarding the other 2 shares. Ie some sort of written agreement via solicitors to pay his share of maintenance to the house until sold and to pay some back if house doesn't reach expected price. If he renegades then the others could seek an order charging land against his new house. In other words it needs to be drafted legally via solicitors. Not just hand him the cash from the bank account...which should be frozen against this type of transaction.

Sell house and divide the proceeds three ways. Divide money in bank three ways. Adult children do whatever they want with the money.
Alternatively adult child without property buys the other adult children out of the property

Whaaaaa?

The "nomad" brother is taking the mick. He's expecting the women in his life (his sisters?) to keep on supporting him. He can rent a room, FFS.

If the house is worth 160k and 60k in savings then that is about 70K each.

If it is a large house for 1 person common sense dictates that the one being made homeless will be able to buy a place for themselves for less than 160K and 70K is a big chunk of that.

Could well be costing you money all the time as the property market is going down in many areas.

I agree

Am I missing something here? If sibling 2 and 3 are expecting 80k, they will end up with more money that sibling 1. Three lots of 80k is 240k but it sounds like there is only 220k in the will so sibling one will end up with less.

If she died two years ago why haven’t you sold the house?

Who is currently paying the bills and council tax ?

Sibling who is living in the house

If Nomad has £60 k before house sells and then refuses to move out you could have months of trouble.
Split the cash 3 ways now and the house money when it’s sold.

He can take out a large flexible mortgage that will allow him to pay a large chunk off once mum's house is sold. He knows this but is taking the piss.

Siblings 2&3 need to both understand that to give him the £60k is akin to them each lending him £20k. Nobody should do that without a formal loan agreement that can be enforced upon his assets. Though a 58 year old nomad brother might not be likely to actually purchase a house with the cash so again..needs to be transferred to solicitors under strict instructions that they are to only release funds towards a property and that a charge is held against his property.