How to split this fairly (inheritance)!

[chickencuddles]

My mum died, unexpectedly, earlier in the year. She left no will. Estate will be divided between myself and brother. There is a house and some cash assets. Brother currently lives in the house, is unemployed, mid-thirties. He has no intention of selling in the near future. There is no mortgage on the house, and it is a large detached family home.

My question is, what happens now? Do we split the cash between us now, and then one day when/if he decides to sell the house, split that between us? Or do I take all the cash now, and then balance this out with the house at a later date when/if it gets sold, as he currently benefits from living rent/mortgage free in a large house?

Other issue is that he hasn’t been looking after the house over the last 6 months (my mum was in hospital for this time), so it is already falling into disrepair, effectively devaluing my share of the property. If the property is sold now, he has enough money to buy a property more suitable to his needs and own it outright. Technically I don’t ‘need’ the money as I had never factored inheritance into my financial plans, assuming it would be eaten up by care-home fees. I can’t work out what the right/fair thing to do is, as I’m obviously heavily involved in it, so I need a fresh perspective.

If the house was worth very little and he wouldn’t be able to afford a new property with his share of the estate, I would feel inclined to just say nothing as it would be unfair to suggest selling when he wouldn’t be able to afford a place of his own, but the fact is that his share would be enough for him to start afresh in a new property.

As is often the case, we get on OK but not brilliantly; there have been issues in the past between us, and I don’t want to be the ‘horrible’ sibling in this situation. We haven’t spoken about any options because he gets very defensive and aggressive when sensitive topics are brought up (he has some ongoing mental health issues), so I think I need to come up with a couple of scenarios of how to split this estate fairly before I address this with him.

I just wondered if anyone had been through something similar and had any advice for me?

We are going to have the same situation one day as DBIL is living with their DF and similarly not working or paying his way. In their case though, it will be split between more than twice as many people so won't be able to buy somewhere, but the money will mess up benefits claims.
I don't think DBIL has considered this at all and I am one of the executors (along with DSIL's DH) so we have all this fun to come (hopefully not for 10+ years!).

In your situation, I'd say do everything ASAP as the longer the situation continues the harder it is to change. For now, use the cash inheritance for paying for upkeep and stuff on the house as you are simply using the joint inheritance on the joint asset.
You really need to sit down and explain the running costs and impact on ownership on his benefits as he won't have a clue about any of that. He can't afford to stay there and he needs to understand that.
Also, sorry for your loss xx

@RagzRebooted

We are going to have the same situation one day as DBIL is living with their DF and similarly not working or paying his way. In their case though, it will be split between more than twice as many people so won't be able to buy somewhere, but the money will mess up benefits claims. I don't think DBIL has considered this at all and I am one of the executors (along with DSIL's DH) so we have all this fun to come (hopefully not for 10+ years!).

In your situation, I'd say do everything ASAP as the longer the situation continues the harder it is to change. For now, use the cash inheritance for paying for upkeep and stuff on the house as you are simply using the joint inheritance on the joint asset.
You really need to sit down and explain the running costs and impact on ownership on his benefits as he won't have a clue about any of that. He can't afford to stay there and he needs to understand that.
Also, sorry for your loss xx

Has your DF set up a will stating if your bil can stay in the house?

@familyissues12345 no, I don't think anyone expected him to stay this long, but it's been 10 years nearly. MIL discussed their will with me before she died (when she made me an executor) and they wanted the house sold and proceeds split between their children (it gets complicated as there are previous marriages and half siblings so quite a few of them!).

All I know is, he won't be living with us!

Get the house fixed with the cash and invest the rest of it at speed.

See a lawyer to outline choices and act accordingly. If DB did caring for DM, be extra kind - without him you would have prob got £0.00

I'm sorry to add a further complication but if he is getting any income based benefits it is vastly to his advantage to stay in the house. The DWP don't expect homeowners to sell their house in order to support themselves, but they do take into account any cash gained through inheritance. I think there are rules that allow a sum to be protected for a while if it's for a new home but otherwise he'll be expected to live on it until it is down to £16000- after that it is prorata'd until £6000. From his POV it may well make more sense for you to take the cash and let him keep the house.

The best thing is to sell the house and split 5050. Should you decide not to sell look into capital gains tax , I'm no expert but it might apply if you sell further down the line .

I would get your brother to join you at the solicitors so they can spell out the options for administering the estate. That way if he has any arguments against the idea or questions about who says it has to be that way, they can answer them based on the law.

How much do you want to maintain your relationship?

Really if he's going to come out of this feeling that he's been fairly treated then he needs his own source of advice, other than you. And there is a chance that he may be entitled to more than you, on the basis of "reasonable financial provision" under the Inheritance (Provision for Family and Dependants) Act 1975. I don't know a whole lot about it, but as her child and arguably someone financially supported by your mother immediately before her death with greater needs than your own, he may be able to override the 50-50 split which would be the starting point for the intestacy rules.

Your interests are different. So ideally he should have his own solicitor who can negotiate with yours and come up with a reasonable settlement. It sounds like your not gunning for every last penny of your 50% so you'd be prepared to be flexible, you're not in a rush, and there's enough in the pot to pay for proper legal advice. In any event the solicitor doing the letters of administration may say that the two of you need separate legal advice due to the conflict of interests.

If he is thoroughly and independently advised then the settlement you both reach is not something which you've imposed on him, and he may well feel that it's fairer.

One thing that is apparent from this thread is the importance of drawing up a will. Doesn't matter how young you are, if you have dependants get a will. Book it now if you don't have one. None of us know when our time is up, and a properly written will is the best thing you can do for those left behind.

Dieing without a will

The rules regarding dieing without a will, and what happens .

My dads inheritance was similar with my uncle he never left the family home and his girlfriend at the time thought she was getting the house. In this case it was a 3 way split between siblings. Uncle took his share and bought a new build small house. He’s still there 35 years on, and there’s still no insulation in the loft.

If he hasn't maintained the property he wont going forward and it is far too big for one person. There is also the value of the contents - far better to tidy the house up and get maintenance done with some monies, sell the house and split the proceeds so he is able to purchase himself something. It is going to take 6 to 12 months to get that sorted at which point he will hopefully have adjusted and had time to start looking for a place for himself that he can cope with etc. You will have other expenses such as Probate as there is a house involved. Personally if you think there could be issues going forward around decisions it may be worth the cost of appointing a solicitora) to sort probate in an intestate case and 2) to present anything unpalatable as the only approach going forward etc (so u don't get the blame)