News1 min ago
Inheritance Issues
Hi. My wife has inherited from her uncles estate but, 20 months later, there is still no sign of any payment.
Her uncle owned classic cars and a house (split into flats) that had been previously valued (2016) at around 1m. He named one of my wife's brothers and two of his own friends as executors. My wife's brother has learning difficulties and "just signs anything". To cut a lengthy story short the other two executors have allowed a friend of theirs (a property developer) to take over the property and he has submitted plans for apartments, in the main building, and houses in the garden. They kept saying there was no money and they sold the cars at auction to make an initial payment on inheritance tax. Just found that there is now a note on the land registry file stating it cannot be sold without permission of this developer.
Total probate estimate was 832000. Cars were worth 50k plus - so the building has lost a third of its value in the last three years, or the two executors gave their mate a great deal..... There have been loads of excuses (latest was sitting tenants - who must have been related to Houdini, as the doors are padlocked on the outside).
To be honest, I'm not sure of the best way forward - thinking of a solicitor but my wife is one of 12 beneficiaries (who actually don't know each other - funny family.....) and I don't want to incur costs persuing something that goes nowhere. There is obviously something not right - but what next?
Any thoughts?
Her uncle owned classic cars and a house (split into flats) that had been previously valued (2016) at around 1m. He named one of my wife's brothers and two of his own friends as executors. My wife's brother has learning difficulties and "just signs anything". To cut a lengthy story short the other two executors have allowed a friend of theirs (a property developer) to take over the property and he has submitted plans for apartments, in the main building, and houses in the garden. They kept saying there was no money and they sold the cars at auction to make an initial payment on inheritance tax. Just found that there is now a note on the land registry file stating it cannot be sold without permission of this developer.
Total probate estimate was 832000. Cars were worth 50k plus - so the building has lost a third of its value in the last three years, or the two executors gave their mate a great deal..... There have been loads of excuses (latest was sitting tenants - who must have been related to Houdini, as the doors are padlocked on the outside).
To be honest, I'm not sure of the best way forward - thinking of a solicitor but my wife is one of 12 beneficiaries (who actually don't know each other - funny family.....) and I don't want to incur costs persuing something that goes nowhere. There is obviously something not right - but what next?
Any thoughts?
Answers
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There are a lot of complaints about regarding solicitors' dealings with estates of the deceased, including/especially when acting as executors. It would probably be best for you to seek professional assessment/evaluation of the situation from/for your perspective. Make sure you provide all the information you have for initial advice (before any further instructions are issued). Based on that decide how much work to instruct, if any - always remember that nothing will be done for free.
any thoughts ?
yeah you havent got all the facts and you havent told us all the facts
probate has been granted - I did wonder how they( the execs ) had done a property transaction without probate ( answer they hadnt) - and IHT has been paid ( or else they wouldnt be able to proceed) - which I estimate to be £250k ( 0.4x( 100,000 - 325,000)
why ( no not how much ) was it valued in 2012 ?
and theya re probably trying to sell as none of the 12 beneficiaries have stepped forward.
so I dont see that there is a) no progress ( there is) and b) they are trying to defraud the estate ( by and large execs dont. )
a solicitor is £200/h and I am not sure what hiring one would do.
o he would blaaart like a good un, advise and write letters ( all lovely chargeable) but I am not sure what he would achieve
yeah you havent got all the facts and you havent told us all the facts
probate has been granted - I did wonder how they( the execs ) had done a property transaction without probate ( answer they hadnt) - and IHT has been paid ( or else they wouldnt be able to proceed) - which I estimate to be £250k ( 0.4x( 100,000 - 325,000)
why ( no not how much ) was it valued in 2012 ?
and theya re probably trying to sell as none of the 12 beneficiaries have stepped forward.
so I dont see that there is a) no progress ( there is) and b) they are trying to defraud the estate ( by and large execs dont. )
a solicitor is £200/h and I am not sure what hiring one would do.
o he would blaaart like a good un, advise and write letters ( all lovely chargeable) but I am not sure what he would achieve
Have you seen the accounts that the executors are maintaining? (Isn't there an obligation to keep them). If not, then maybe ask to see them. You may find though the low probate value was deliberately too low (several reasons why people do that) so may turn out to be more, or maybe the estate had liabilities you don't know about- big funeral bill, tax bills, debts, mortgage, equity release element. Or maybe the house was overvalued a few years ago- maybe it was just a rumour that got exaggerated.
It is possible they have given their mate a good deal- although as he hasn't officially bought it, you may be assuming they have a gentlemen's agreement to sell it to him cheap when the transaction does go through so they can then split his profit. Would make a good plot for a story.
I know much smaller estates that have taken several years to resolve - one small issue can hold them up- and by the time they are resolved solicitors have taken most of the money in fees.
Roughly what is your wife's share? I'm wondering because if it one 12th then maybe you are only worrying about the difference between say £50000 and £70000- so is it worth spending a lot of money to get back between £20K and £0
It is possible they have given their mate a good deal- although as he hasn't officially bought it, you may be assuming they have a gentlemen's agreement to sell it to him cheap when the transaction does go through so they can then split his profit. Would make a good plot for a story.
I know much smaller estates that have taken several years to resolve - one small issue can hold them up- and by the time they are resolved solicitors have taken most of the money in fees.
Roughly what is your wife's share? I'm wondering because if it one 12th then maybe you are only worrying about the difference between say £50000 and £70000- so is it worth spending a lot of money to get back between £20K and £0
.// I think if you read my post you will note that there has not been a property transaction.//
yes I did - - particularly this bit
"Just found that there is now a note on the land registry file stating it cannot be sold without permission of this developer."
. It cant have been there forever. This means that there has been a recent registration event, and it is natural to inquire into the background. He has registered a right - the right to prevent sale without his say-so.
you go on to say:
"The executors are allowing a friend to develop it without transfer of title." - where did that come from?
if the executors are enhancing the value of the land by getting planning permission before selling then it seems sensible
you can apply for planning permission on property not your own
anyway you are right - I dont know the half of it ....
yes I did - - particularly this bit
"Just found that there is now a note on the land registry file stating it cannot be sold without permission of this developer."
. It cant have been there forever. This means that there has been a recent registration event, and it is natural to inquire into the background. He has registered a right - the right to prevent sale without his say-so.
you go on to say:
"The executors are allowing a friend to develop it without transfer of title." - where did that come from?
if the executors are enhancing the value of the land by getting planning permission before selling then it seems sensible
you can apply for planning permission on property not your own
anyway you are right - I dont know the half of it ....
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