Hi wingnutta

The Trustee would either seek the repayment of the money or could petition for sequestration. The latter is likely.

Re the house share, the Trustee as a last option could raise an action of Division and Sale which could ultimately force the sale of the property unless there was another way to release the value of the 3rd share.

Mark

Hi wingnutta, welcome to the forum.

Do you know how much the house is worth roughly? Was there a mortgage secured on it?

It is certainly an unfortunate situation and I guess that whilst your sister-in-law's actions are difficult to defend, they are at least understandable given the situation with the property. However, she really needs to be up front with her trustee and find a solution.

I'm afraid the trustee potentially could force the sale of the house, though would have to jump through some considerable legal hoops first in court. Your wife and brother-in-law would have a right to defend any legal action, and the trustee would need to convince a sheriff that your brother-in-law should be evicted against his will and the house sold off.

Given the uncertainty and cost of doing this, I would be surprised if the trustee was not willing to agree some kind of compromise to "buy out" their interest in your sister-in-law's third share.

As for the missing £8000, I guess this would have to be factored into any agreement being made.

Appreciate the replies. Unfortunately there is no other way to release the 3rd party share, although financially my wife and i could buy her out i will not be suggesting this. The brother in law may be moving out in the next 6 months anyway, and the house would be sold then, i just wanted to know if they could force the sale. I will get her to speak to her trustee as a matter of urgency.

Would asking for a settlement figure to clear the trust now be wrong? I know she is going to ask me this question so i am just being prepared..

Thanks again

Hi wingnutta,

As Kevin has asked, do you know how much equity the property could have? A lot of the potential legal action that Kevin and Mark speak of will depend on the amount of equity in the property as this will have to be balanced up against the potential legal costs of trying to force the sale via court.

If the brother-in-law does decide to move out in 6 months time the property could be sold and if the 1/3 share is enough to clear your sister-in-laws debts in full + interest + costs then her case could be brought to a close. Again though it depends on the level of equity in the property and if he did move out.

Would you wife want the property to be sold if it came down to it?

The best thing to do is be honest and up front with her Trustee as it will eventually come to light.

Hi again, sorry I forgot to say that there is no mortgage on the house. It was paid off from a insurance policy when she died. The house is probably worth in region of £150k so looking at 50k each which would easily clear her debts for the full 100p of every pound. The only issue is that the brother in law wants to rent it and come to an arrangement with the 2 sisters which was the plan. But if they can force a sale then he might have to rethink his plans. The mother didn't want her money to be wasted but I guess that she racked up the debts - she has to pay them.

As a side note, the soon to be ex husband also has a trust deed - please tell me that her inheritance could not be used to pay HIS trust deed as they are still married???

Hi wingnutts

No, the ex or his trustee would have no claim on the funds.

Mark