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Inheritance query with brother

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  1. #1

    Inheritance query with brother

    My dad passed last year in the summer, RIP.

    In the will, me and my brother were split down the middle. He left us a house which is worth 220K GBP minus 60K equity he took out to handle things.

    My brother dealt with everything financially, he did an amazing job and wants to keep the house on. I'm more than happy he wants to do this but he's not exactly financially stable. He has a job but it's freelance. He's looking around for a solicitor to remortgage the home and pay back the 60K equity otherwise we will be bought out.

    While I'm sure he can remortage the house, I'm not sure when, how or even if he can pay me back. Initially I was expecting the full handout as his ex-company were meant to buy him out but now they are stalling and he wants to take them to court. I was planning to reinvest that money in property but I think it's unlikely he'll be bought out now and if he wins in court, it won't likely be a lump sum, rather monthly installments.

    Then there's the question of him completely renovating the whole house. He has ideas of taking out walls and such. He's also adding new windows and buying new stuff for his car. While these things are fine and he deserves to spend a bit given the harsh year we had last year, I'm a little concerned. I have every confidence he has every intention of paying me back but i've been told these things have there way of unravelling differently.

    I definitely know he can't give me the full amount anymore but should I ask him to pay me back monthly once he gets back on his feet? What would you guys do? From a legal perspective, he was the executor and signed off on everything. Is my half of the house legally binding due to the will? If he decides he doesn't or can't pay me, should I just leave it be. My heart tells me to just let him get on with it and if he can pay me back, cool but my head (and wife) are telling me otherwise.

    Last edited by periphery831; 04-02-2020 at 02:16 AM.

  2. #2

    Join Date
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    First off, sorry for your loss.

    Are there other assets your father has willed to you two? If there are and they are equal to or greater than the value of the house, you can take your half in those assets and leave the house to your brother and let him carry out his vision.

    Word of warning. When a family member passes, the distributing of assets, the sorting of family history and the raw emotions can and will bring out the very best and very worst in people. Here's hoping you see the good.

    shri, spode and periphery831 like this.

  3. #3
    Quote Originally Posted by periphery831:
    I definitely know he can't give me the full amount anymore but should I ask him to pay me back monthly once he gets back on his feet? What would you guys do?
    This is the core question, right? I'd say: open a discussion with your brother and see how he sees things and what his plan is. Family is more important than money, but that's a large chunk of money, and families have been ripped apart over less.

    Also, be firm to your wife on this. I'm sure she means well, but this being family she needs to give you space to handle things as you see fit (including forgetting about it) without her on your back.

    Good luck!

  4. #4

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    Quote Originally Posted by periphery831:
    My dad passed last year in the summer, RIP.

    In the will, me and my brother were split down the middle. He left us a house which is worth 220K GBP minus 60K equity he took out to handle things.

    My brother dealt with everything financially, he did an amazing job and wants to keep the house on. I'm more than happy he wants to do this but he's not exactly financially stable. He has a job but it's freelance. He's looking around for a solicitor to remortgage the home and pay back the 60K equity otherwise we will be bought out.

    While I'm sure he can remortage the house, I'm not sure when, how or even if he can pay me back. Initially I was expecting the full handout as his ex-company were meant to buy him out but now they are stalling and he wants to take them to court. I was planning to reinvest that money in property but I think it's unlikely he'll be bought out now and if he wins in court, it won't likely be a lump sum, rather monthly installments.

    Then there's the question of him completely renovating the whole house. He has ideas of taking out walls and such. He's also adding new windows and buying new stuff for his car. While these things are fine and he deserves to spend a bit given the harsh year we had last year, I'm a little concerned. I have every confidence he has every intention of paying me back but i've been told these things have there way of unravelling differently.

    I definitely know he can't give me the full amount anymore but should I ask him to pay me back monthly once he gets back on his feet? What would you guys do? From a legal perspective, he was the executor and signed off on everything. Is my half of the house legally binding due to the will? If he decides he doesn't or can't pay me, should I just leave it be. My heart tells me to just let him get on with it and if he can pay me back, cool but my head (and wife) are telling me otherwise.
    Loaning someone close to you will either bring you closer or drive you apart. Set a firm payback schedule over a period of time you are happy with. It may be the stability your sibling is looking for in life,
    periphery831 likes this.

  5. #5

    Join Date
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    What does the deed to the house currently say? I think the key is that the deed to the house needs to be in BOTH your names (joint tenants or some such). Otherwise, he can encumber the whole value of the house with a new mortgage and you would be screwed. Simple matter to draw up a new deed.

    Whether you get any payment from him is another story but you need to protect your property right to your half. If it all goes south, you may have to sell it to pay back the loan, with you on the deed, at least you get your share at the sale.

    I have a completely financially irresponsible brother and own the house he lives in, outright. I never expect anything good in the way of finance, and that way I am never disappointed...

    spode, CharSiuNow and periphery831 like this.

  6. #6

    Sorry to hear about your loss and about the current issues.

    Unfortunately as I know from experience with my own extended family, these things have the potential to escalate with negative consequences for the relationships between those involved.

    I agree with MABinPengChau that the first thing you need to do is find out what name the title to the house is in. If it's still in your father's name and has his home equity mortgage still registered against the title, then things get a little complex as the lender will likely require either the loan to be repaid before agreeing to the transfer or both you and your brother to become jointly and severally liable for the loan. "Jointly and severally" means you are on the hook for both your share and your brother's share (which may not be that big a deal given that amount would have been deducted from the value of the estate anyway). One of the best things you can do is to get your name on the title.

    The next issue is the family relationships. Your brother is asking for one thing and, if I have read your post correctly, your wife is (at best) uncomfortable with what is proposed. Getting caught between family members is not a place anyone would want to go.

    It's not clear if your brother is living in the house at the moment or not? If not have you considered renting the property out short term (possibly on AirBnB if legal in the relevant location) to generate some income while this is being resolved? Time is clearly a factor as the existing loan will continue to accrue interest and other costs of ownership will also.

    FWIW, if it was me I'd be trying to dissuade my brother from spending any money on renovations until everything else is sorted out – if he doesn't have the money to repay you now he shouldn't be spending large sums on property renovations. I also suspect that if he is freelancing, getting a mortgage to buy you out will be difficult. As much as I appreciate that your brother wants to keep the house, if the finances don't stack up, selling may be the sensible thing to do.


  7. #7

    Join Date
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    I would also like to pass on my condolences to you.

    I think the key here is that if he is getting the house remortgaged, then he should be able to take out a higher mortgage and pay you back your share. If they house is 220k and the 60k quity, then your brother can remortgage for 140k, pay you 80k (half minus your share of the equity) and pay off the equity. If the house is really worth 220k, I do not see why the Bank would not give him a mortgage for 140k. This way you get your money, and your brother can do with the house as he wishes.

    As my family has learned over the years. family and money are not exactly the best combination, so it is important to just resolve this as soon as possible. Installments drag on the money issues for years and any small dissagreement could impact the repayment as well as your ongoing relationship with your brother.

    Good luck with everything!

    periphery831 likes this.

  8. #8

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    Sorry for your loss, and I admire your desire to look after your brother even though at times your wife may not fully agree with you. These are very personal things and one has to manage them on their own (unfortunately).

    I don't know the details on how you can manage your situation, so I won't add anything for it.

    Just my views on how to work with your wife, speak with her and tell her what your desires are and how you want to handle this. At the end of the day, you need to be able to sleep well knowing what you have done and this ultimately impacts your quality of life.

    I told my wife (and my in-laws as well) that I will not interfere or question her decision if she chooses to give away her share of inheritance from her parents to her siblings. I will only get involved to make sure my tax liability is nil. At the same time, I told my wife that she should not question my decision(s) on how I want to manage my inheritance with my younger sibling. I need to be able to sleep well at night knowing what I did was the right thing and that my decisions would make my parents proud.


  9. #9

    Join Date
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    Quote Originally Posted by periphery831:
    My dad passed last year in the summer, RIP.

    In the will, me and my brother were split down the middle. He left us a house which is worth 220K GBP minus 60K equity he took out to handle things.

    My brother dealt with everything financially, he did an amazing job and wants to keep the house on. I'm more than happy he wants to do this but he's not exactly financially stable. He has a job but it's freelance. He's looking around for a solicitor to remortgage the home and pay back the 60K equity otherwise we will be bought out.

    While I'm sure he can remortage the house, I'm not sure when, how or even if he can pay me back. Initially I was expecting the full handout as his ex-company were meant to buy him out but now they are stalling and he wants to take them to court. I was planning to reinvest that money in property but I think it's unlikely he'll be bought out now and if he wins in court, it won't likely be a lump sum, rather monthly installments.

    Then there's the question of him completely renovating the whole house. He has ideas of taking out walls and such. He's also adding new windows and buying new stuff for his car. While these things are fine and he deserves to spend a bit given the harsh year we had last year, I'm a little concerned. I have every confidence he has every intention of paying me back but i've been told these things have there way of unravelling differently.

    I definitely know he can't give me the full amount anymore but should I ask him to pay me back monthly once he gets back on his feet? What would you guys do? From a legal perspective, he was the executor and signed off on everything. Is my half of the house legally binding due to the will? If he decides he doesn't or can't pay me, should I just leave it be. My heart tells me to just let him get on with it and if he can pay me back, cool but my head (and wife) are telling me otherwise.
    Worst case scenario for you - at some point in the future, your brother says sorry I can’t pay you back what dad left you. Are you okay with that? That’s what it boils down to.

    Otherwise, you may want to put it diplomatically to your brother he’s over-extending himself financially and risk not respecting the wishes of your father - not because you don’t trust him but objectively speaking, he doesn’t have the financial stability to back up his genuine intentions to pay you back. Then, your wife will definitely have a view on that and as she is your wife, she is entitled to a view on an event that affects your family’s future.

    But if all are ok with the worst case scenario - then it’s a non-issue.

    And £60k expenses to “take care of things”? Isn’t that a little steep? Unless all your dad’s unspecified debts, like outstanding mortgage, are included, of course.
    Last edited by Praetorian; 04-02-2020 at 12:20 PM.
    periphery831 likes this.

  10. #10

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    You are trying to do the decent thing and I admire you for it.

    However i am sure your father would have wanted you both to benefit equally from his assets and your brother as executor needs to carry out his expressed wishes. May be you should discuss with a solicitor (or the solicitor handling the legal side of things) to confidentially express your concerns. Your brother is an adult and needs to be made aware of his legal responsibility. A solicitor may act as your proxy to ensure he does.

    When my parents died I voted to sell asap so I did not have any legal or financial ties with the 4 other siblings. Complicated as a sibling was also family lawyer!


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