Probate question

Asked for advice. story as I understand it is as follows.

The mother died some time ago. Father lives in the house with daughter and grand daughter. Theres an estranged son. Father dies, leaves the will in 3 names, daughter, grand daughter and the son.
The son sees the will, asks for house to go to probate to get his share. Daughter and grand daughter still living in the house.

Some other facts that may or not be pertinent.
Daughter is pregnant and has no means so no loan can be got to buy out sons share. Each share probably worth around 100k each gross of any expenses.
Grand daughter is still in school, is 18 soon.

The daughter has been advised by the solicitor, who is executor, that the house has to go into probate as the son has asked for it and to apply to local council for a house.

Have they any options to stay in the house as they were and are still resident?

Are you aware that any discussions ever took place with the father and the daughter along the lines that a life interest may have been discussed and the father just didn't get around to putting it in will?

Is it an equal split between the three?

If so, there's a nasty tax kicker for the grandchild.

(€100k - €30k) x 33% = €23k of tax

Had he left 2/3 to the daughter, it'd be tax free as it'd be below the threshold.

Assuming the two women have lived in the house for three years, the inheritance for the granddaughter would be tax free if they remain in the house for six years (due to the dwelling house exemption). Maybe ask the brother to wait the six years (so the relief can be obtained and so his sister doesn't end up on the streets)?

Gordon Gekko said:

Is it an equal split between the three?

If so, there's a nasty tax kicker for the grandchild.

(€100k - €30k) x 33% = €23k of tax

Had he left 2/3 to the daughter, it'd be tax free as it'd be below the threshold.

Assuming the two women have lived in the house for three years, the inheritance for the granddaughter would be tax free if they remain in the house for six years (due to the dwelling house exemption). Maybe ask the brother to wait the six years (so the relief can be obtained and so his sister doesn't end up on the streets)?

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The daughter and the grand daughter have always lived in the house so I don't understand the 2/3 comment. I know the grand daughter has tax considerations.

The son will not wait, he's pushing for the sale to get his share. Injunction taken out by daughter on the son due to hassle from him to push sale through so all correspondence is through solicitor. Really difficult situation.

Dad makes a will leaving HIS property equally between daughter, son and granddaughter.

Dad makes no provision for the actual situation.

Son is entitled to his share - in the absence of any saving clauses in the will. Daughter can't afford to buy him out. We assume. End of.

Daughter and grand daughter have a significant inheritance. They can move out and rent. Or buy. Why are they/the solicitor thinking in terms of local authority housing? They'll have money.

You could turn it around and say that daughter expects her brother to facilitate her and is being entirely unreasonable. Its not his fault she's pregnant!

mf

mf1 said:

Dad makes a will leaving HIS property equally between daughter, son and granddaughter.

Dad makes no provision for the actual situation.

Son is entitled to his share - in the absence of any saving clauses in the will. Daughter can't afford to buy him out. We assume. End of.

Daughter and grand daughter have a significant inheritance. They can move out and rent. Or buy. Why are they/the solicitor thinking in terms of local authority housing? They'll have money.

You could turn it around and say that daughter expects her brother to facilitate her and is being entirely unreasonable. Its not his fault she's pregnant!

mf

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Correct. They can not buy him out.
No. It's not his fault she's pregnant. I was putting the situation in context as They do not have means to support themselves when they move out of the house while its up for sale. This is why I'm assuming they were told to apply for a house.
How they proceed after they receive the inheritance is a different matter. Rent/buy up to them.
I was hoping there was some way they could stay in the house until the sale, they've been told they have to leave while its up for sale.

"I was hoping there was some way they could stay in the house until the sale, they've been told they have to leave while its up for sale."

If relations were civil, staying in the house, while it was up for sale, would be a perfectly usual scenario.

I suspect that everyone can see that the two living in the house will probably not co-operate during the sale process. So that it won't sell. It won't necessarily be a deliberate approach - but since they don't want it to happen, they won't put themselves out. And selling a house requires a lot of effort.

This needs the lawyers to talk - if the parties cannot.

Here is the big question - why do people ( the daughter) not make any provision for themselves? And their future ? And their children?

mf

car said:

Theres an estranged son.

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Yet the father left him 1/3 share in the house. It would be interesting to know how he came to be called estranged?

car said:

The daughter and the grand daughter have always lived in the house so I don't understand the 2/3 comment.

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The house is worth €300k. The daughter and granddaughter are inheriting 2/3 of it (worth €200k). But €23k is being lost to the taxman. Had the daughter just inherited the 2/3 share, there'd be no tax to pay.

mf1 said:

Here is the big question - why do people ( the daughter) not make any provision for themselves? And their future ? And their children?

mf

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The situation is one of life, there would have been very little education or guidance in their lives growing up. Low paid work if any along the way and I know shes not working now.

I get the 2/3 comment now Gordon, thanks for explanation.


"Yet the father left him 1/3 share in the house. It would be interesting to know how he came to be called estranged?"
I understand that he distanced himself some time ago from the family, some jail time was involved. It matters not really, his name is on the will for the 1/3 share.