Executor claiming debt against estate .

[Jasonkh]

My brother is claiming £90k against my fathers estate.
He says it is for development of a property at the main house into a dwelling.We are both beneficiaries and joint executors. Other beneficiaries are his 2 children and my daughter.

The main house is registered at the land register in only his and my name following my mother’s death over 25 years ago. We have a joint mortgage .
We both live in the main house. I was not aware of the development until builders arrived. Brother stated they would live in the new house but their children have moved in from the main house and pay no rent or upkeep.I font even have a key or use of the property.

He has a letter from my father saying he is the main owner and he agrees to lend the money from my brother to be paid on his death.
There is no agreed loan amount or any evidence money was given to my father.
I found a payment during probate of £40k to my brother and when queried it was suddenly deducted from the £90k.
Probate has been granted with no mention of the house in it and the £40k was included as a payment to my brother .
I have asked for full expenses details and proof the money was freely given to my father but only been provided with a spreadsheet.

He feels the debt is payable but I query a debt with no giving of the money for an asset my father had no financial interest in.

Am I right? Brother is obviously keen to have it paid saying the majority agree. I am concerned his children may in time query if as could my child. My child thinks it’s not due.

[atticus]

If the two of you cannot agree, this may have to end up in court, at possibly greater cost than £90k. Might mediation help?

[Jasonkh]

Thank you atticus
He is currently saying it is legitimate and that the majority ie his 2 children and him are happy with the estate paying the amount.

I have had no bills , receipts etc for work and just been givenn spreadsheet . I appreciate that the house has increased in value but are concerned that at some point any of the beneficiaries may ask why an amount was paid .

I hear your advice as court costs as you say would be prohibitive.

[Jasonkh]

How would mediation work? I presume it’s some compromise as I can’t see my dad paying for items like a bin . This and other household goods were included.

[PallasAthena]

Who are the beneficiaries under the Will?

Who are the Executors named in the Will?

Which Executors have been granted Probate?

Are your brother's children adults?

[atticus]

Mediation is a form of negotiation, facilitated by a neutral third party mediator. Here is some reading matter:

Guide to Civil Mediation (gov.uk)

Find a mediator UK

[Jasonkh]

PallasAthena
The beneficiaries are my brother and I getting 76% of the proceeds with chattels split 50/50.
The remaining 24% goes equally between the 3 grandchildren. He has 2 and I have 1.

He and I are both joint executors and the main beneficiaries.
All beneficiaries are adults.
Probate has been granted.

thank you for your time

[Pezza54]

How did you and your brother become joint owners of the property 25 years ago?
Did you need to take out a joint mortgage to become joint owners?
Who completed the probate and IHT forms?

[Jasonkh]

Pezza54
On my mother’s death the house was transferred into our names by my father.
I think my mother’s half was due to come to us anyway .

We were not aware of this at the time as our father dealt with probate. I am not sure if his reason why he put the whole house into our names. My mums estate at the time did not use all of her allowance.

We took out a mortgage to extend the property. The house was already in our joint names.

We both put in probate forms on the death and there was no IHT. The debt was not included in the probate figures.

[Pezza54]

So you own half of the property (including the refurbished property) as tenants in common with your brother?
Has your daughter received her 8% of the net estate value at the date of your father's death? Is she still living in the main house?

Could the refurbished property have its own access from the road? Could it be sold as a stand alone property in the future? Does it have its own metered utility supplies? If so, developing this property was financially wise and would probably have significantly increased your share of the value

Your brother's children should now be paying 50% of the market rentable value that includes water, electricity etc

.

[Jasonkh]

Hi no he piggybacked the water and electric off the main house so no separate utilities
my child hasn’t lived here for a number of years as they have their own house.

yes we own 50/50 as tenants in common and the annexe has a separate door . It is not on mains gas but has gas bottles as we are rural and no gas.
I have never been given a key and was told I could inspect it once a year !!
refurb could be split off but imo impacts on the main house.
He is suggesting splitting the main title deed into 3 as there’s a barn with PP
Sadly brother had to give up work for health so can’t get a mortgage so thinks I should help pay the split.
I have offered to buy him out so once estate is sorted we can go our separate ways . It’s not been received well.

thank you for replying

[Pezza54]

Did your brother obtain planning permission for change of use for the property that has been converted?
How are the utility bills being paid? If the children who have moved in are heating the property by electricity as the fuel in the winter, the increase in electricity bills will be significant. They should be contributing to the bills in addition to paying rent

When was planning permission obtained for the barn conversion and did your brother obtain it?

[Jasonkh]

Thank you for replying
planning permission was granted to my parents. Dad was alive when building work started on the annexe. Planning permission was from over 30 years ago but was started to keep it.
utility bills are split as follows:
elec & internet him
water tv licence house insurance on main home only me
joint council tax between us and upkeep of the septic tank and boiler service .
I also pay the oil heating bill/ hot water to top up the tank .
There is sky tv paid by him which I have no access to.

I have no access next door however his children use facilities in the main house and enter as they wish.

I know it is complex and the best thing I ever did when they moved in was to get him to take over the electric. Next door uses gas bottles however they use space heaters too as I think children have to buy the gas!!
one child I think is no longer living here but that is denied

[Pezza54]

Are you saying that your brother claims he lent £90k to your father over 25 years ago? Although the amount of money isn't stated in the letter, is there a date on the letter and your father's signature?
£90k seems a lot of money 25 to 30 years ago. Strange to convert an annexe and rely on gas bottles for heating. Why didn't your father or brother extend existing heating pipes and add new rads?
If the money was lent that long ago it is unlikely bank statements will still be available proving the amount borrowed
Here lies the main problem. How does your brother prove it was £90k he lent your father?

You mentioned your brother has taken over the electric bills. Have you compared the electric bills with the bills for heating oil?
As you are unable to watch sky tv (mostly adverts so nothing missed) you shouldn't take the cost of this service into account when comparing contributions for upkeep of the property

How does your brother intend to finance the barn conversion? Did he obtain planning permission for this building work?

[Pezza54]

Do you think your brother had the spare funds to lend your father £90k over 25 years ago?