Outstanding mortgage on willed apt, bank want mortgage cleared to release other asset

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RowanTree

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I have been willed an apartment and monies , the BOI are saying to my solicitor they will not release the monies until the mortgage is cleared . They gave the mortgage first day without the requirement of a life policy as they knew my brother could cover the cost of the apt and he was a health risk.

Can the bank put down this requirement ?

If they gave the mortgage first day without life insurance surely there is some negotiation there for me to take the apartment with the mortgage ?

Finally when paying inheritance tax will I be paying tax only on apt value minus mortgage outstanding ?

Thanks very much
 
What does your solicitor say? What does the Executor say?

The mortgage is a liability of the estate and it must be paid off. You can't "take the mortgage". You could ask BoI to issue you a mortgage.

The Executor presumably can't distribute the monies to you without first clearing the mortgage.

Having said that, I can't see how BoI would be able to withhold transferring the money to the Executor. Is BoI the Executor by any chance?

You won't be getting the apartment and the mortgage. The Executor will have to clear the mortgage with cash from the estate or through selling the apartment. You will get either the apartment or cash. CAT will be based on that.
 
The executors are - myself (sister of deceased) and the accountant. The accountant is really acting as an independent, he is not mentioned in the will other than being an executor. All major assets were willed to myself.

The reason I don't want to get another mortgage to clear this one is that there expensive. I can potentially clear the mortgage from the monies but would prefer to 'bring' the current mortgage into my estate. So it seems this can't be done ?

'CAT will be based on that' - could this be explained please ?

The bank seem to think they can hold back on giving me the monies until mortgage is cleared.

Thanks very much for replying. All the information I am getting on this web site is a Hugh help.
 
Seems fairly straightforward to me.

Bank wants the amount they are owed cleared (i.e. the mortgage) cash connected with the estate is tied up with it. No life policy means either the estate has to pay the mortgage off or you will.

You get the residue when mortgage is paid off and that is what CAT will be based on.
 
As Executor you cannot pay the money to yourself until you have paid off all the liabilities of the estate.

Forget the accountant. You need a solicitor to advise you on your responsibilities here.

CAT is Capital Acquisitions Tax which you may have to pay on any inheritance from your brother.
 
Brendan Burgess said:
You need a solicitor to advise you on your responsibilities here.

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Click to expand...

He has a solicitor, he mentioned it in the first post.

Rowantree there is no logic to your question on the life insurance. The fact he had no life insurance is not a bargaining tool on whether the bank will let you take over the mortgage. Looks actually to me that the bank agreed to no life insurance due to your brother's health problems. This is perfectly normal practice and procedure.

Have you asked the bank whether they would agree to you having your own mortgage, rather than it being paid for out of the sale proceeds?

The liabilities have to be subtracted from the assets before a calculation can be made on tax.

Why do you want the apartment, is it in Negative equity?
 
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