A sticky inheritance one

[Wheretheresawilltheresawanker]

DH has 3 brothers. I’ll call them BIL1 and BIL2. Their DM died last year leaving 4 properties. They were bought in the 1950s/60s when the area was basically a slum but are now worth A Lot of money.
Property 1 is the biggest and potentially most valuable but hasn’t been updated since the 1960s and isn’t really habitable atm (and is empty)
Property 2 is slightly smaller than property 1 but in better condition. BIL1 has lived here for 15+ years
Property 3 is in the middle in terms of size, condition and value. It’s now been sold to pay off the whopping IHT bill.
Property 4 is the smallest, worth perhaps 50% of 1&2. It’s pretty shabby and needs a refurb but is basically fine to live in. DH & I live here with our 2 small DC. MIL left it to her grandchildren - our 2 DC and BIL2’s son. BIL1 is unmarried and has no DC.

BIL2 who has never been particularly stable has gone completely off the rails since MIL died. His wife kicked him out after catching him cheating. He moved in with BIL1 but is refusing to pay any bills. He has stopped going to work at the business he owns with his STBEW. He has refused to help with any of the probate, won’t pay child maintenance towards his DC, has discovered a love of clubbing in his 40s and brings back a parade of 20-something girls. Full on midlife crisis!

DH’s dream is to do up property 1 for our family. It will cost a huge amount but we can just about do it. BIL1 wants to improve property 2 and keep living there, ideally without BIL2. God only knows what BIL2 wants. We offered to effectively buy him out by switching shares in properties and topping up any shortfall. He’s now insisting he will buy us out from the proceeds of his divorce. Except we know from SIL that he’s ignoring the divorce petition and their assets aren’t worth that much. He’s being constantly obstructive and offensive, keeps threatening to “take us to court” and we’re at our wits end.

We’re seeking legal advice but I just wanted some MN collective wisdom on how best to proceed.

Make sure BIL2s DC is provided for as it sounds like he will piss any money up the wall and his DC will get fuck all.

SIL could be entitled to a share as part of the divorce proceedings.

BIL2 is being a complete dick and can’t be trusted so I wouldn’t do anything without a solicitor.

I'd sell the whole lot. After which everyone goes their own way. If you try to get into a refurb project with all the families involved it's going to go tits up. You have one BIL whose clearly irresponsible so I doubt he's going to lift a finger to help other than to lift his said finger to get his share.

Same as above. I would sell the lot, split the money and each go your own sweet separate ways.

As above. I wouldn't have any dealings with your DH family at all, you'd end up regretting it.

Sell everything, split the proceeds and do your own thing. You and DH could buy another property to do up if that's what you want.

Thanks @Iboogy & @MaybeitsMaybelline I’m increasingly inclined to agree about cutting losses and selling up. But it means so much to DH. Silly as it’s just bricks and mortar but there’s the whole family history - it feels like chucking away their legacy. Sigh.

They all need a valuation.

Sounds like you can't just sell, as BIL1 won't move out of #2 and I don't blame him if he's been there that long.

However he will have to buy you and BIL2 out.

Meanwhile, if you want #1 you will have to buy both BILs out. And if its going to take a fortune to renovate then that makes no financial sense. Sell it and split it 3 ways and buy a house that needs much less work.

#3 has been sold already and since #4 is in several children's names there's nothing you can do about it.

Seems like you are over complicating things, there's only 2 properties that can be resolved.

@IDontGiveABagOfDicks yes it’s BIL DC I feel most sorry for in all of this. DH & BIL1 are talking to SIL to help look after his interests too. Poor kid.

Thanks @ElspethFlashman. The houses were all valued as part of probate so we know roughly what we’re talking. Could get it done again potentially if it would help.

We plan to use DH’s share of the sale of property 1 plus the sale of our current property (which is on the market) and a small mortgage if necessary to finance things. Financially the house if renovated would be worth more than the cost to renovate even in this climate, plus it’s an amazing house in a fantastic location. We wouldn’t be able to afford something as special.

DH and BIL1 are happy to swap shares in properties 1 & 2 which will simplify things and we’ve been advised that we can sell property 4 if it’s in the DGC’s interests (and all agree).

But it sounds like DH needs to think about giving up his dream

It's up to the executors to sort out, and you don't say who they are.

The will may contain a power for the executors to give the beneficiaries assets instead of cash.

If all 3 brothers (I presume there are 3 of them and not 4 as your OP suggests) are executors and cannot agree what to do, you need to make that clear. Otherwise leave it to the executors to sort out.

@collaborate sorry I didn’t specify - the 3 brothers are the executors

Your current property is owned two thirds owned by your DC. How can you use the proceeds of the sale to fund your own house purchase when they don’t belong to you?

I think they have to act with unanimity so it will have to be referred to the court if they can’t agree.

plus the sale of our current property (which is on the market)

But does your current property not now belong to your DC and your BILs DC? Or do you have another property that you own and do not live in? You can't take the money that was left to your DC and DN as your own!

You presumably have 1/3 of Property 1 and 1/3 of property 2, so you need to find approx 1/3 of the value of property 1 plus the renovation costs. If property 1 is not in a mortgageable condition, this may be a non starter anyway.

Personally, I'd sell them all, put the DCs funds in trust, and use your DH's funds, plus a mortgage to buy somewhere completely different for you to live in.

@mysteryfairy sorry that wasn’t clear. DH & I already own a property (w a mortgage) but are selling it and have moved to property 4

@mrsm43s @Collaborateyeah I think cutting losses and starting again seems to be the consensus! It’s really helpful to get perspectives from people without emotional attachments!

In terms of finances we have 1/3 of property 1, 1/3 of property 2, 1/3 of the remaining proceeds from sale of property 3 and will have proceeds from sale of the house DH & I own which is on the market now. We were considering transferring our DC’s share in property 4 to property 1 but I see now that will cause issues when they come of age in terms of realising the asset. Yup think me & DH need to have a difficult conversation...

So do you live in the property that is the grand children’s asset, or a different one?

DH has 3 brothers. I’ll call them BIL1 and BIL2.

What are you calling the third one?

Because I think depending on how long ago your mil died, you really should be paying 1/3rd market rent to your bil 2’s son, as well as really your two children.

@calmfizz we’re living in the DGC’s house. I don’t think we need to pay rent to our DC if they live here too so we? But maybe to DN - we only moved a month ago so still sorting things out.

@FamilyOfAliens sorry that should be one of 3 brothers or has 2 brothers. And 2 brothers is currently more than enough!!!

Get all the properties evaluated, sold and split money equally - if DH is set on keeping one of the properties he needs to 'buy out' the other brothers (or visa versa depending on value of each)

Don't stay in joint ownership with anyone - cut financial ties with each other. This will be best for future relationships.

I think you really need to look at the wording of the will, but really should consider selling everything and creating one pot then dividing equally. It seems like things are liable to get very contentious, if people start making repairs/improvmenents will that entitle them to a larger percentage, who’s paying the maintenance for these vacant properties etc.

Bil1 could claim that having lived at the property for 15 years he has contributed to its upkeep and home improvements/general maintenance and feels he should get a larger cut of the proceeds for sale/value.

Who are the executors for the grandchildren’s property in trust? Really you need to disregard that they are your children and that the property you now live in is owned by another party, children not of legal age to forfeit their rights. Unless there are stipulations in place that grant your husband a residency until the children are 18 but I doubt that’s so.

I think this is all too complicated and really everything needs to be sold and the proceeds split.

In terms of rent for the house you are in, then yes, really you should be paying market rent, split 3 ways between the three owners of the property (bearing in mind of course, that market rent will not be high if the property is in need of a refurb). If you are there, informally, for a short period (say less than six months) then probably its not a big deal,but if you are planning to stay for longer, you really need to come to some arrangement regarding this. Your children should receive their full shares, regardless of them living there!

Too complicated. I’m not sure you are acting in dgcs best interests, and even if you achieve ideal outcome that you have 1, bil1 has 2, then bil2 will piss away the cash and resent you both forever.

Why are you selling your home and moving to property 4 which you don't own? Your kids don't even own it fully, part of it is owned by nephews/nieces! Sounds like a recipe for disaster.

I agree with pp saying sell the lot, take your share of the money and find somewhere else.