Really difficult situation about to arise in my family, just wondering if anyone has any advice?
Long story short...
My DM has been diagnosed with terminal cancer, and we will probably lose her in the next 6-12 months.
She inherited from her parents their family home (worth about £450K in todays money) about 20 yrs ago. Her only brother had the family business & land (worth a lot more) as his inheritance.
My (D)GF had a covenant on the inherited house stating my DM could only sell the house to her brother (and possibly his children, not sure) for the maximum of £100K regardless of any increase in value, and could only sell it to a third party if this offer was declined.
This covenant was probably designed to prevent my DF getting his hands on the place and selling it to pay off large (very) gambling debts etc (had happened before, with some property that was given to DM a decade before). Added to the fact my Uncle and his children were very much favoured over my side of the family.
My DM tried to challenge the covenant at the time of the inheritance, went to court (not sure how high) and was ruled that it should stand (not sure why).
Uncle has now passed away (in his mid-sixties), a couple of years ago.
My Uncles side of the family (I have 2 older cousins) have done well for themselves, they had private educations (paid for by my GPs) while my siblings and I very much get by (there are 5 of us).
My DM will probably (from half-snatched conversations, as it does seem right to talk about money as her life is being cruelly cut short) leave the inherited house to my siblings and I. Her own share of her marital home will be left to my DF who will probably gamble it all away when she is gone.
I don't want to seem money grabbing, but any inheritance from the GPs house would change my life, enabling me to afford to have children without worrying abut how to afford the time off work (I am SE). It would also change my siblings lives, as they are in similar positions to me and might be able to get on the housing ladder etc.
The GPs house is in a lovely part of the world, but I can't imagine any of my siblings wanting to re-locate to live there FT. At the moment my DM rents it out for holidays, but even though she ploughs all her salary & earnings into it, it has really gone down-hill maintenance wise as its too much for ordinary folk to look after. It is the most beautiful house, but it really needs well-off owners to bring it back to it former glory and hopefully live in it FT to enjoy such an amazing house.
I am so sorry about the long post, but I felt I needed to explain the circumstances properly.
My two questions are:
- Do we have a chance of getting this bloody covenant lifted when my DM passes on, baring in mind her brother is dead already.
- If not, how on earth do they calculate inheritance tax (probably my biggest worry - as I am scared we will all be in debt from this and that beautiful house will just have to rot because we can't afford to maintain it).
I really appreciate any help/advice with this, its really stressing me out and making me so angry about how badly my DGPs treated my DM over the years.
TIA