How do I resolve an inheritance dispute with my siblings?
I have inherited a property with my two siblings. My sister would like to buy the other two of us out. Borrowing money would be necessary, but as the property is in poor condition, she is carrying out improvements (at her cost) before requesting a loan.
My brother and I wanted to give our sister ample time to buy us out. But almost two years have passed, and improvements are nowhere near finished. I would like to benefit my children with this small inheritance in the next few years. Do you have any advice on how to make this fair for both sides?
When inheritance comes into play, relations with siblings can get difficult.Credit: Simon Letch
It’s quite reasonable for you to want this estate finalised. It can often take some time to liquidate all the assets in an estate, but two years, given the circumstances you’ve presented here, appears ridiculous and, frankly, disrespectful.
I suggest you voice your concerns with your sister, making it clear that you want the estate wrapped up within the next few months. If she’s unable to buy you out, then the property needs to be put on the market.
It may be worth talking to the solicitor who is assisting you with the estate to explore what options you have if your sister continues to delay.
I sold my house in mid-December. I intend to buy another home, but not for six or more months, and I’m wondering what I should do with the money in the interim. Currently, the funds are in the bank earning 4.85 per cent.
I have done some research, and there are “investments” that range from bank levels of return to a crazy 24 per cent commercial property development. I would call myself conservative with money, with a low to moderate appetite for risk. I have seen and liked bank bonds (Barclays are offering 10 per cent) and reasonable second mortgages (offering around the same). What should I do? Do you like bank bonds or secondary mortgages?
Thanks for your question. Given a six-month time frame, I would advise you to simply leave these savings in the bank. At 4.85 per cent, your money is keeping pace with inflation after allowing for some of that interest to be paid out in tax.
Taking on more risk to increase your returns would likely have a fairly insignificant impact on your purchasing power over such a short time frame, and capital losses here would be pretty painful.
