Inheritance - What is fair?

[MissOliviaFawn]

Hi all, looking for some advice. My Nan recently passed away and I’m the executor of her will. It leaves 25% to me, 25% to her step-son, and 50% in a trust originally intended for my late father (her biological son). Since he’s passed, I have discretion over the trust—whether to keep it or gift parts of it. The estate is worth around £350k after costs. This effectively means that I get 75% and he gets 25%.

For context: Nan owned a house with my maternal grandad, later remarried, and lived with her second husband (deceased 30 years ago) for 20 years. Together, they got a new mortgage to buy out my grandad's 50% share (so 25% each).

His son (the step-son) believes the estate should be split 50/50 between us and is urging a deed of variation—threatening to contest the will if I don’t agree. He has three children, who weren’t included in the will, but I’m considering gifting them £10k each from the trust.

What is fair? Any advice would be greatly appreciated.

You need to consider the legal issues before any ethical issues. Have you had legal advice saying that the gift to the trust is still valid and you have discretion?

Do you have discretion over the trust as the Trustee or as the beneficiary of your fathers estate following his death?

Step Grandad only owned 25% of the house ? so surely that is what is in the will legally for his Son ? I guess it depends how much thr SG was paying towards the mortgage whilst living with your Nan which then morally he could be entitled to more but I’m not sure 50% as your Nan was paying whilst with your Grandad .

So 75% of the value of the house is your grandmother’s, yes? Which has passed to you, via the 25% direct and 50% via your father.

Her second husband’s 25% of the house passes to his son, your GM stepson.

Applying that to the estate as a whole, that seems fair to me. Why should the stepson benefit from the 50% that comes from your grandfather, who has nothing to do with him? Why should your grandfather’s share be passed to his wife’s new husband’s child? Or, more recently, why should 25% of your father’s share be gifted to his mother’s stepson?

I’d be telling him no. I’d also be reconsidering the gift to his children.

By the sounds of it, step brothers father only owned 25% of the house, not 50% and so you having 75% sounds right.

If your dad was still alive, it would only go to him then to you anyway,

Id say £10k gift each is a lovely thing to do!

I think you're being more than fair

I would only gift the £10k to children if he doesn't contest. Otherwise I'd spend that £30k on a good solicitor.

You should keep 75 per cent.
The stepson gets 25 per cent.
That's what your grandmother wanted.
Ignore the step son's threat to contest the will. Not going to happen.

On an estate that size if he contests the will there wouldn’t be anything left snywsy.

I agree with everyone else! And don't give any money to the children if he contests. In fact he's not going to thank you for that anyway so I would reconsider it. He's going to play dirty and unless you give him 50% he's not going to be speaking to you anyway. He is entitled legally and morally to 25%.

That 50% that belong to your dad should only come to you. Your dad wouldn't have left anything to your stepson or his children would he?

Let him waste his share contesting if that's what he wants to do. Your father's share is yours. Have no further contact with this vulture.

Yes. This. Give the stepson the choice.

Did your step grand father pay any extra deposit towards the mortgage or was it 50/50! I think the half your grandmother already owned would be morally yours and the other half divided as your grandmother already stipulated in her will. If he came in with extra towards the deposit for their joint mortgage you could slightly re weight it to take that into consideration.

Were you close with your step uncle before? I personally wouldn’t be considering a cash gift to his kids unless there is a pre existing relationship and even then £10k each seems generous given your step uncle’s threats (unless you are so rich that is a small amount to you). Have you sat down or written to him to say what you said here just to show him how ridiculous a law suit would be.

yes people have said this - but I feel like it's not the kids fault so I don't think they should miss out as they were also her grandchildren - just not though blood. But it makes you feel that way doesn't it - if it's not good enough - why give anything!

I am by no means rich, I hope to put the money towards a deposit to buy my own home, as myself, partner and son old live with my mum. I was just trying to give them something that I felt would make a difference to them as a nice gesture - but now I feel that it's been tarnished as that I'm not giving enough.

what are they missing out on?

Your children can benefit from whatever you want to give them from your inheritance from your dad and GM's 75% share and the step son can give his children whatever he likes from his fathers 25% share.

This is such a simple situation, i'm amazed he's even asking.

He's just seeing you get a load more money than him and he wants some.

Give it to them as adults, they'll appreciate it I'm sure.

Did the stepson inherit anything when his father died or did it all go to your DGM?

It all went to to DGM.

I say kids - but they are adult children - in their 20's

Get all this sorted before you think of giving any of your money away. Most people don't inherit from their grandparents anyway, so don't feel it's your job to give them anything. They won't thank you and will tell anyone who'll listen that you were selfish, so stop yourself right now with that.

Your dad inherited the 50%. Unless the will states otherwise, that 50% comes directly to you. It belongs to you - it's part of your dad's inheritance. Don't even think of giving any of it away.

Will your nan’s step son be sharing his parents inheritance with you?