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Hello - I hope someone is able to give me some advice on the following.
My father died last year, and I am named as personal representative on the Grant of Probate, as the named executors were both now retired and issued a Deed of Renunciation.
In his will, my father left his estate to be split equally between myself and my two brothers.
My two brothers and my father ran a business (partnership) between them for many years (I was not involved), but it was never very profitable, and a few years ago, my brother (let's call him brother A) left the partnership as it was felt that the business could no longer support all of them. His capital account at that time was in debt by around £35k, but my father transferred this debt to his own account rather than saddle brother A with that debt. The business has been carried on by brother B.
When my father died last year, his capital account in the business stood at a positive £45k. To my mind, as the will says that his estate at the time of his death should be split equally between the three brothers, that should be split between the three of us at £15k each. However, brother B is of the opinion that, as brother A had his debt written off by my father a few years ago, it is unfair that he should then receive a further £15K out of the business as well, and considers that he had more than his share when he left. He proposes that the £45000 is therefore split just two ways, between he (brother B) and me. I can see brother B's point, although I am not sure that brother A would necessarily agree, but what would be the legal position? Can we, as the only beneficiaries, agree to vary the terms of the will on this basis, if we all agree? If we don't all agree, where would I stand as the named personal representative, if this share was withheld from brother A?
Whatever happens, neither myself nor brother A want to be partners in the business, for fear of being saddled with debt should the business fold - it barely makes enough money to earn a living for brother B. The business certainly isn't profitable enough to pay out £45k, or any other sizeable lump sum, to either myself or my brothers, so whatever happens, the money will probably stay in the business as a loan or loans, to possibly be repaid over a period of time.
(Just in case anyone should ask, the £35k transfer, which occurred about four years ago, has been declared to HMRC on the IHT 400 (IHT403))
My father died last year, and I am named as personal representative on the Grant of Probate, as the named executors were both now retired and issued a Deed of Renunciation.
In his will, my father left his estate to be split equally between myself and my two brothers.
My two brothers and my father ran a business (partnership) between them for many years (I was not involved), but it was never very profitable, and a few years ago, my brother (let's call him brother A) left the partnership as it was felt that the business could no longer support all of them. His capital account at that time was in debt by around £35k, but my father transferred this debt to his own account rather than saddle brother A with that debt. The business has been carried on by brother B.
When my father died last year, his capital account in the business stood at a positive £45k. To my mind, as the will says that his estate at the time of his death should be split equally between the three brothers, that should be split between the three of us at £15k each. However, brother B is of the opinion that, as brother A had his debt written off by my father a few years ago, it is unfair that he should then receive a further £15K out of the business as well, and considers that he had more than his share when he left. He proposes that the £45000 is therefore split just two ways, between he (brother B) and me. I can see brother B's point, although I am not sure that brother A would necessarily agree, but what would be the legal position? Can we, as the only beneficiaries, agree to vary the terms of the will on this basis, if we all agree? If we don't all agree, where would I stand as the named personal representative, if this share was withheld from brother A?
Whatever happens, neither myself nor brother A want to be partners in the business, for fear of being saddled with debt should the business fold - it barely makes enough money to earn a living for brother B. The business certainly isn't profitable enough to pay out £45k, or any other sizeable lump sum, to either myself or my brothers, so whatever happens, the money will probably stay in the business as a loan or loans, to possibly be repaid over a period of time.
(Just in case anyone should ask, the £35k transfer, which occurred about four years ago, has been declared to HMRC on the IHT 400 (IHT403))
to LB,
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