My mother had a fair deal loan that was to be repaid from the house sale after her death. Her will left everything equally between her 3 children.Or is it possible to repay the loan from the 'accountable persons' assets in order to avoid selling the home ?
The family would like to retain the home in Ireland as long as possible (about 1 year from the persons passing).
Thanks for that information.My mother had a fair deal loan that was to be repaid from the house sale after her death. Her will left everything equally between her 3 children.
Probate and house sale was delayed and would not be finalised for probably 6 months after the 1 year that is allowed by fair deal for interest free repayment after death. After this time revenue interest rates apply from the date of death. One sibling had the cash to repay the fair deal loan, the advice from solicitor handling probate and house sale was;
Solicitor draws up a simple agreement to be signed by all saying €xxx is a loan from sibling 1 to be repaid from house sale proceeds before any distribution happens.
Sibling 1 then lodges the funds to solicitors account, who then pays the fair deal loan to revenue.
When the house is sold solicitor refunds sibling 1, deducts solicitors fees etc and distributes balance equally between the 3 siblings.
You could do similar and also not incur any punitive revenue interest. All went as planned for us.
Thank you. Very Helpful.I acted as executor in similar circumstances to the above, except I was granted probate as a personal applicant. Proceeds of estate, including sale of house were to be distributed equally amongst siblings.
When probate was granted I used funds on hand belonging to the estate (a CU account balance) to pay the loan, before the house sale was finalised.
I didn't need to involve a Solicitor except to handle the house sale on behalf of the estate.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?