Grandparent wanting to leave flat to grandchildren - worried about management fees on property and liability

[Todaypicard]

Hi there,
my DM 60 is about to purchase a second home - a small flat in a seaside town far from her (and our) home. She says that this will be left to her grandchildren in her will. She currently has 2 grandchildren - our child aged 6 and my siblings child who is a newborn. It is likely my sibling will have more children.
The flat has management fees and ground rent totally £3K a year.
Im worried about the practicalities of what will happen when the children inherit.

1. what happens if she died before the children are 18 years of age? Who is liable for the fees? The mortgage if there is one? We can’t afford to pay as children!
2. what happens if one child wants to sell and the other wants to keep it? How will be be decided and who is liable for the fees in the meantime?
3. what happens if there are a total of 3 or 4 grandchildren? Will it be really messy and complicated to sort out the responsibility of the flat?
4. what if the grandchildren are in early 20s and do not have the time to sort all this out/have no income for the fees etc?

I can’t work out if this is going to just be a really poor choice by DM which is going to cause more harm than good (or more work for me and sibling). Or perhaps I’m just naive so looking to be educated. Thanks

The best way to do it would be to will the proceeds of the flat after sale split between all living grandchildren. That way it takes into account any grandchildren yet to be born and would allow the estate to sell the flat, repay any mortgage, and give each a share.

Management fees would be owed by the estate and whilst family members of the deceased offer to settle the debt in advance of probate being obtained and then reclaim the expenses from the estate, the managing agent ultimately has to wait for the estate to pay if they do not.

You’re correct that idea of expecting the grandchildren to keep the flat is likely to be logistically unworkable (and indeed would not be possible if there was still a mortgage on the property which nobody was able to pay.)

Does she need this to get the rental income for her retirement?
If she doesn’t, just tell her the hassle it’s going to create and ask her to simply leave a cash sum to the grandchildren. But since you’ve mentioned mortgage on it… does she not actually have a cash sum and plans to have the rent from it to pay the mortgage and then leave them whatever equity is in the place when she dies?

She can leave it to them, and the executors can sell it upon her death and put the money into accounts for the beneficiaries directly.

It could get very messy. A family I know well had a house left to 4 grandchildren and then due to death, divorce etc people a few generations down ended up owning 3/12 or 2/5 or all sorts of ridiculous portions and the arguments over who paid what/got to use it etc were awful. It is a nice idea but could end up as a millstone

If she does this the property can (and should!) be sold and the proceeds divided between the beneficiaries. There’s no obligation to keep owning it after her death

You don't want the grandkids owning the flat. It would remove their first time buyer status when they want to buy. Better for them not to own it but get split of the estate.