Sorry if this is an obvious question but we have a Will where D’s share of the property was left to X and Y with a life interest for his wife. His wife predeceased him and he bought a flat (this is allowed for in the will as a purchase in substitution). There is a very high monthly service/maintenance charge which is payable until the flat is sold and the residuary legatee wants to know if this comes out of the proceeds of sale which are going to X and Y or from residue.
The will does not specify just says the property goes to Xand Y in unequal shares.
The burden of expenditure which would include insurance, service/maintenance charges and all other outgoings in respect of the property which is specifically bequeathed has to be borne by X and Y and deducted from the proceeds of sale.
I have a case where a Will leaves a house 75% to daughter A and 25% to daughter B. There is nothing in the Will as to how costs will be paid. Would the house expenditure from death up to the sale be borne by each daughter 75% by A and 25% by B? Would the same apply to the costs of sale i.e. estate agents fee and selling solicitors fee?
In the absence of any direction, or agreement, to the contrary, all expenditure (and any receipts) should be shared in the same proportion as the ownership – i.e. 75/25 between A and B respectively.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals