Cash inheritance delayed until house is sold and market recovers

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saintstephen

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Last summer my grandmother passed away. She had 3 children, a small amount of savings and her home.
I was left a 20k inheritence, the money to be given after the sale of her home. This was unexpected, we were close and she had mentioned before that she had left me something but I was surprised it was this much.
There are other grandchildren and they were left the contents of the house split between them. My uncle is the executer of the will and he has told me that nobody in the family has any problem with the inheritence that I have been given.
So here is my problem... due to other circumstances we will need this money next january 2010 (investment property issue for a different thread) but I have been told that the house will not be put up for sale due to the recession, it may be rented out and the profit from this be used to pay my inheritence and other small outstanding costs of the estate. It would take approx 4 years to pay the 20k.
My question is would it be feasible to suggest that a fund be built up from the start of the tenency until the end of the year, then a mortgage be taken out for the amount needed for both my inheritence and the other costs, this to be paid back with the rental income.
Does anyone know if this is viable or have any experience of a similar situation?
My main worry is that suggesting this will seem too pushy, if circumstances were different I would have no problem going with the flow.
Thanks
 
Re: Another inheritance question

but I have been told that the house will not be put up for sale due to the recession, it may be rented out and the profit from this be used to pay my inheritence and other small outstanding costs of the estate. It would take approx 4 years to pay the 20k.
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Who told you this? It doesnt add up and doesnt sound right.

I was left a 20k inheritence, the money to be given after the sale of her home.
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If this is what is in the Will, then this is what will happen - the house will be put up for sale and the proceeds distributed to the beneficiaries. Usually this would take less than 12 months unless there are exceptional circumstances. The state of the economy does not stop this process and the executor would be expected to take all reasonable steps to carry out the instructions in the Will even if it means that the house is sold at a lesser price than it would have realised in better times.
 
Re: Another inheritance question

csirl said:
Who told you this? It doesnt add up and doesnt sound right.



If this is what is in the Will, then this is what will happen - the house will be put up for sale and the proceeds distributed to the beneficiaries. Usually this would take less than 12 months unless there are exceptional circumstances. The state of the economy does not stop this process and the executor would be expected to take all reasonable steps to carry out the instructions in the Will even if it means that the house is sold at a lesser price than it would have realised in better times.
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Not quite as simple as that I would have thought particularly if the Residuary Legatee/Legatees agree that the house should not be sold in the present climate however there is a presumption that the legacy of €20,000 should be paid shortly after the issuance of the Grant of Probate , perhaps there is sufficient additional monies in the Estate to discharge this legacy equally the Residuary Legatees could raise a loan to pay same.
 
Re: Another inheritance question

Deiseblue said:
Not quite as simple as that I would have thought particularly if the Residuary Legatee/Legatees agree that the house should not be sold in the present climate however there is a presumption that the legacy of €20,000 should be paid shortly after the issuance of the Grant of Probate , perhaps there is sufficient additional monies in the Estate to discharge this legacy equally the Residuary Legatees could raise a loan to pay same.
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Good point, but the net result is that the OP will still get the €20k within a short period of time, not over 4 years. If the others arent willing to pay the 20k and/or there is not enough in the additional monies, then the house may have to be sold.
 
Re: Another inheritance question

Hello OP here...
Re: Another inheritance question
Quote:
but I have been told that the house will not be put up for sale due to the recession, it may be rented out and the profit from this be used to pay my inheritence and other small outstanding costs of the estate. It would take approx 4 years to pay the 20k.

csirl
Who told you this? It doesnt add up and doesnt sound right.
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It was my father who mentioned that this is being considered, we are not a very close family, but I had mentioned to my dad that we would be in a bad financial situation without the money. He came back to me a few days later with the rental situation, we are thinking of the loan option and wanted to get some advice here first about how feasible that option is.
I really do not want to force the sale against the wishes of the children, and would not do so.
Thanks for taking time to reply
 
Re: Another inheritance question

Deiseblue said:
, perhaps there is sufficient additional monies in the Estate to discharge this legacy equally the Residuary .
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Unfortunately not the case my uncle has said there wasn't enough cash to cover the burial expenses fully.
 
Hello,
I just wanted to update along with a question.

The house still has not been sold, there was a buyer shortly after my last post however some planning issue arose and they pulled out, I have neen told that issue is now resolved. There is no for sale sign in front of the house, although with a bit of searching it can be found online.

I did make an appointment to speak to the solicitor dealing with the will to ask about the house not being sold (informal chat) she said she was acting for my uncle and supported his position that it is best to wait for the recession to end.

I approached my uncle with the suggestion of me receiving my inheretance, he laughed and said when my grandmother wrote the will the house was worth a lot more and I should reduce my expectations, or maybe I buy the house.

I left it at that, as is common I do not want a row. However I am concerned that by doing nothing I may be loosing my rights to what my grandmother gave me.

Thanks

Oh .... The "investment" property mentioned above is still interest only :/
 
...I should reduce my expectations...
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I'm open to correction on this, but as long as there is €20,000 left from the sale of the house, that is the amount that you have been bequeathed and that is what is paid to you.
 
Plus you are entitled to a hefty amount of interest payable from and by the estate on delays of payment of a legacy.
 
It's written in law. I am familiar with this and have seen past demands for the interest paid. There are enough solicitors reading AAM who may just confirm this point. Otherwise I will quote the relevant section of the wills act after I go to my office.
 
I'd be grateful for a citation, because I haven't been able to find a legal basis for it.
 
Padraigb, found part of the files. The information was provided to me by one of my solicitors, Ann Corrigan, who wrote a book in 1997, named 'Trusts & Succession Law' which was updated in 2003. It is emphatic that Interest is payable from an estate to a beneficiary after and from one year from date of death.

In case of doubt ask your own solicitor.
 
The interest will work out at a lot more than 3% per year.

The OP was left 20 k and is not dependent on the housing market. They should force a sale and then take the money plus interest. Then tell the Uncle to SU and FO, IMO.
 
But surely everyone entitled to a share of the estate is entitled to the same level of interest so therfore it works out as zero unless the asset is earning interest which in this case it is not.
 
Hi Stephen

This is a very tough one.

In law, you are entitled to €20,000 plus interest, if Mercman is correct.

Think what would your grandmother today if she was still alive? With a much reduced house price, would she still leave you €20,000?

In law, you can insist on the €20,000. In practice, you might choose not to.

Brendan
 
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