HELP! Does putting inherited house into trust stop this BIG problem?

[Matbexter]

Background info:


My mother passed away just over two years ago; her estate has been complex to sort out and we are still i a period of administration with regards to inheritance tax and the HMRC.
Once sorted, her estate is to be divided three ways - between myself and my two brothers.
My younger brother and myself were made executors by my mother within her will and I have moved back to the UK from abroad to organise the job of probate etc etc. I am currently living in my Mothers old home with my family.
Our older brother is, to put it mildly, the 'black sheep.' He has always lived beyond his means and would often use my Mothers home address as a shield. He lives elsewhere but has his bank accounts etc all attached to her address. He takes out payday loans and doesn't pay parking fines etc etc (this is just a brief overview of what is in fact a history of stealing/lying/debt that has been the norm for him throughout his life.)

Once Inheritance Tax has been settled with the HMRC, we will need to transfer the property into all 3 childrens names as dictated by our mothers will.

Since living in this house, I have been visited on numerous occasions by the bailiffs looking for my brother and only last week a warrant was issued for his arrest over unpaid fines. I believe that he has agreed to pay these people off a minimum amount per week. But this is an unending pattern....it is still happening - the debt collectors are still writing and calling and unfortunately, despite having his address, they still come here as he still uses this address as he says that this house is a third his (true) so he is entitled to...

We have no direct contact with my errant brother anymore.


My Question:
We need to protect my Mothers home from unwanted seizures/bailiffs etc (my brother obviously inherits a 1/3 of all of my mothers belongings within the house.)
So I am thinking of creating a 'trust' and then transferring my mothers house into it as it's sole asset. We would have trustees but all three of us siblings would be joint inheritors....would this be enough to not allow the bailiffs in as my brothers name would not be on the title deeds - only as a beneficiary within the trust details?

Is there any other option (other than buying him out - which we hope to do in the future, but is not possible at present) - I really am at the end of my tether with this!

Thank you thank you in advance for any advice that you are able to give.
Kindest regards,
Becki

[enaid]

Re: HELP! Does putting inherited house into trust stop this BIG problem?

Once Inheritance Tax has been settled with the HMRC, we will need to transfer the property into all 3 childrens names as dictated by our mothers will.

I think that is your problem it is stated in the will and I think your brother would have to agree to what you are suggesting.
There are ways of dealing with Bailiffs and if you can prove that your brother does not live at that address then you should have no problem imo.
Just my thoughts on the matter.
Enaid x

[enquirer]

Re: HELP! Does putting inherited house into trust stop this BIG problem?

Until the estate is finally wound up and distributed, your brother owns none of it, and is not 'entitled' to use the address. If he does so, he may be guilty of fraud, particularly if he uses the address to obtain loans and so on.

Until distributed, the estate is vested in the executors as trustees. Thus, it is already in a trust.

How do you come to be living in the property?

Is the property to be sold as part of the winding up, or is there some other arrangement in mind?

As he doesn't own it, bailiffs can't touch the property for your brothers debts (which is not to say that they won't try, or claim that they can). Be aware that they might start trying to grab cars off the drive, and so on.

It might be wise to swear out a Statutory Declaration. State that you are executor of your mothers estate (this will have more impact), that X does not live there, has no entitlement to use the address for any purpose whatsoever, and has no goods at that address. Send copies to all those seeking him (send Recorded Delivery and download proof of receipt).

[Matbexter]

Re: HELP! Does putting inherited house into trust stop this BIG problem?

How do you come to be living in the property?
As my younger brother and I are executors one of us needed to be in the UK to complete probate; my brother moved to New Zealand shortly after my Mothers death leaving me to complete everything with his (remote) help.
As my home is in Indonesia and I came home shortly before my Mother passed away, it seemed the logical for me and my family to stay living in her home whilst sorting through and organising her complex affairs (which as I mentioned above, two years on are still not fully resolved re HMRC)

Is the property to be sold as part of the winding up, or is there some other arrangement in mind?
We plan to hold on to the property although I will be going back to Indonesia with my family once we have everything wrapped up. Then if/when rented, rental income will be split three ways. This is something we obviously have to all agree on as siblings, but I'm pretty sure that my (black sheep) brother will agree as he will want the cash.

It might be wise to swear out a Statutory Declaration.
Excellent idea - thank you for this.