NSW death and property and siblings

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TangledWeb

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28 February 2018
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This is a complex problem I think. About twenty years ago my brother-in-law R wanted to follow his wife to live in America. He was in his early 20's and had no assets other than a newly bought flat that had fallen in value below the purchase cost. To help him out my father-in-law D agreed to "buy" the flat at an above-market-vale rate. He gave my brother-in-law 10K and took on payment of the mortgage.

However, on paper, the property remained in my brother-in-law's R's ownership. The understanding among R, his sister (my wife) and his other brother, Ri, and their parents was that this property would one day be where my mother-in-law would live when my father-in-law passed away and that in reality she owned it. This happened not long after.

For the best part of 20 years my mother-in-law lived in the property. She paid the endowment mortgage each week, paying into an account. She didn't send money to her son to pay the mortgage, she paid it. She's just passed away. We have just discovered that in July last year my brother-in-law R sold the property for 156K. He did not tell his sister (my wife).

As part of the sale agreement, to an investor, my mother-in-law was allowed to stay in the property and was due to move out in March, to another much smaller property, bought for 50K. The rest of the money seems to have vanished. My wife has asked for an accounting of this money and so far received no reply.

We've also become aware that when my brother-in-law R went to live and work in the US he and his wife continued claiming child benefit for the eldest son until he turned 18, about three years ago. We've also discovered that five weeks after the sale of the property R and his wife bought a new property in their home state, Arizona.

So too did their 18-year-old daughter and her boyfriend. My wife's other brother, Ri, is a very vulnerable person with serious mental health issues. However, he cared for his mother and lived with her these past 20 years. The wishes of his mother and father and my wife and (we thought) R was that after his mum's death, any assets would be used to secure his future.

Is there anything we can do to reverse what seems to be a theft?
 
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Rod

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27 May 2014
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Possibly. The matter is not straight forward so you should see a lawyer.