Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Shop Valuation

NeillawNeillaw New MemberRossendaleMAAT, AAT Licensed Accountant Posts: 257
Just what you need on a Friday! (Can anyone advise)

My sister-in-law bought a solarium of he dad last October, the shop had been run down and is currently a recovery job. The agreement was that she would pay him back when she had the business back on it's feet. (Price £5k)

Since going in she's spent £500 on new tubes, electric and he had taken over £3.5k in courses. They had agreed to talk about the shop price when he came back of his holidays in January.

The problem she has now is that her dad had a heart attack and the executor of the estate wants all the £5k. The business has actually cost her money.

My opinion would be to just give them the keys back, has anyone got any suggestions.

Thanks
Neil

Comments

  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,440
    You can advise on the various options but ultimately she needs to decide. I would imagine this could be a seasonable business and that things may improve in the summer so may not be as bad as it has been. She can go and speak with the executor and decide what to do.
    Regards,

    Burg
  • DinkyDinky MAAT, AAT Licensed Accountant Posts: 25
    Hi Neil

    This is a legal problem, not an accounts one. It appears to revolve around what was actually agreed and whether this was put in writing. If there was nothing in writing then how does the executor know what was agreed? She may need to see a solicitor for advice.....

    Sorry I can't be more helpful.
    stevo5678
Sign In or Register to comment.