Offering a Bridging Loan to a relative.

[Pezza54]

You have obtained two prices of similar value, so the quote is reasonable. There is a lot of form filling

The first item, £950, is costly because the solicitor has to apply to court. If your wife, with your help, is prepared to apply for probate and become executor, then appoint the solicitor to carry out the rest of the work on the list, much of the £950 should be saved

[Northern Guy]

I'm aware that the probate cost is rather a lot. I've applied for it twice in the past. The complication is that the distant daughter refused to renounce when we asked her 6 years ago, and also refused to do it alone when we offered to renounce. I'm afraid she's a rather untrusting person, without going into too much detail. My assumption here is that she would however renounce to a Law Firm. I suppose we could try her again. Having gone through probate once with a brother at the other end of the country, who could not be relied on to do anything, I always swore I'd never make that mistake again. Hence wanting her (or else our side) to withdraw when intending to apply 6 years ago. I'll think about broaching the subject and the costs with her, but on that subject, can these come from the final house sale proceeds? I don't think I'd get a penny from her now.

[Pezza54]

You shouldn't rely on sale of house funds to pay the legal bill. The housing market is stagnating, properties are appearing on the market again after being "sold subject to contract" The solicitor is unlikely to be prepared to wait until the house is sold. Your wife should contact her sister to explain the problem that has now arisen

[Northern Guy]

OK, I will broach the subject with the daughter as soon as I can find out where the costs legally lie. Equally to beneficiaries (2 one side; 1 the other); all to the MiL who lost her husband; or equally between renouncing executor/trustees, one of whom will never inherit anything under that Will? I really need to know this before attempting to extract money from unwilling/broke relatives.

And it has been pointed out to me that the MiL has a Right to Remain in her late husband's half owned home, a lesser right than the Life Interest I thought she had. Does this distinction have any bearing on matters?

[Pezza54]

That's a difficult question
Would all the executors have renounced their duties anyway at the time of FIL's death? Or did someone wrongly advise them that probate wasn't required, which has now caused an extra £950 plus vat of legal fees? The executors may argue that they would have applied for probate at the time if they had been given correct advice
MILlegally owns a half share of the property and has beneficial ownership of all of the property. She can live there as long as she likes, rent out spare rooms and keep the income. She has to maintain the house, pay bills. When the property is sold she is entitled to half of the proceeds

[Northern Guy]

Not applying for probate was more a passive decision than the result of bad advice. Initially they intended to apply, but could not agree on any one of them renouncing to simplify it, nor was there agreement for all to apply together. As by then all the late husband's money was in shared accounts, passing automatically to the surviving wife (MiL), and as other organisations just issued refunds or changed account names on receipt of the Death Certificate, there was no immediately obvious probate work to do. The late husband's family, distant anyway, just stayed away as there was no immediate inheritance for them. Life for the surviving wife carried on, unaware that a trust should have been created.

I get the impression you think the MiL should foot the bill? I'm not against this if it's the fairest option, and I don't relish approaching the late husband's relatives, at least one of which is relatively poor, and asking for £1k from each. It's quite likely she, who is also one of the executors/trustees, would simply say she hasn't got it. And I imagine some agreement for the MiL to pay all now against settlement with the other relatives later when the house sold, would be just another irksome job/cost to add to the bill?

[atticus]

Putting it off will not make the problem go away; it may make things worse.