HELP-Sister trying to cash in on Dads home

lisyloo

Not sure if my dad can just alter his will so she gets it back or will he need a solicitor?

I would definitely suggest a solicitor.
Wills are a very bad way to do things IMO (although I am an amateur)
and this is WHY you should get professional advice.

Wills can be changed at a moments notice at any time.
There is no security for your auntie that way.
Also she will get a share of what's left AFTER long term care which may be zero.

A loan agreement (contract) might be a better bet.
But you need professional advice now.
You also need to make sure he doesn't fall foul of "deliberate deprivation" rules.
If he spends the money and then wants long term care then the local authority might investigate to make sure he didn't do this deliberately to ge benefits.
I'm not suggesting he is just warning you of the risks.

Discussion boards are great for getting an appreciation of the issues but at the end of the day you might need professional advice.

margaretclare

lisyloo wrote: »

There were some terrible schemes a few decades ago where the amount "rolled up" could exceed the value of the house and relatives were pursued.

I believe there is also an organisation called SHIP (safe homes income plan).

Also Age concern are a great resource.
I think they also publish a book.

Equity release is not going to be the cheapest way to do things, but if he's adamant about not moving then it might be a good solution and prevents family issues.

Does he get all the benefits hes entitled to?
My in-laws started getting pension credit when they had £27K in savings so don't assume he won't qualify.

He's probably not old enough yet, but my in-laws are both disabled and get loads of money thrown at them (attendance allowance, pension credit, council tax benefit) even though they have some savings.

Hello, can I just add:

The type of equity release scheme approved by SHIP (safe home equity plans) bear no relation to the type of schemes marketed 20-some years ago. We have a 'lifetime mortgage' because we wanted to pay off the original mortgage which would have continued until we're 83, and we could see pleasanter things to do with the money. Like, having the 70-year old roof re-done and now it looks as if we need the bathroom re-done because DH is going to have a stiff knee so the present 'step-in' shower has got to be replaced by a 'walk-in'.

If you think attendance allowance is as easy to get as all that, have a word with someone called JuneBow who posts on the Silver Savers board. I do agree with claiming everything you might be entitled to, though.

bengee1977

gord115 wrote: »

3) My sister has told him her offer is fair and she won't budge

Sounds like your sister is trying to con her own father :eek:

localhero

If the guy refuses to move then it's a case of him making a commercial decision as to where he obtains the funds, and he's obviously trying to keep the value of the house within the family by contemplating borrowing from other family members.

I don't know enough about equity release to comment, suffice to say a lot of schemes do come with nasty pitfalls.

I think the father would benefit from some advice from an outfit like the CAB or perhaps Age Concern, to see what the exact costs of the scheme would be. If the equity release scheme is the cheaper option than borrowing on the terms offered by the daughter then that is the obvious way to go.

If it's not then the family who don't have the means to enter into an arrangement with the sister don't really have much of an argument.

Personally if it was me with a spare £10k to invest, I would think twice because of all the risks pointed out by Lisyloo. There would be too much risk for me. The obvious ones are 1) the guy remarrying, thereby revoking the Will. 2) He could simply make a new Will later dividing his money how he wants to - perhaps after an argument. 3) He could leave the whole lot to the dog's home, 4) Care fees eat up the value of the house, or 5) he could go back later and get more funds against the house that eat up all/most of the capital.

So the proposal by the daughter may not be so unreasonable after all. Practically though this arrangement has the likely risk to create many years of acrimony, and if there is a good equity release deal to be had, then that would be the fairest, simpler and less divisive way to go.

My view is obtain some professional advice about equity release in the first instance before contemplating messy arrangements with family.

EdInvestor

localhero wrote: »

My view is obtain some professional advice about equity release in the first instance before contemplating messy arrangements with family.

:T Quite agree.

Start here: https://www.ship-ltd.org

gord115

bengee1977 wrote: »

Sounds like your sister is trying to con her own father :eek:

Yeh that's what we think!

Gorgeous_George

bengee1977 wrote: »

Sounds like your sister is trying to con her own father :eek:

Sounds like the OP is more concerned about 'her inheritance' than her dad.

The sister could lose out on the deal but a clearer loan agreement would see that the sister gets x% per annum from the sale of the house. I suggest that if the outside company are prepared to do the deal for 6%, let them. My worry is that they would add a number of fees to the 6%.

GG

snake16

As someone who has an 83 year old father in law, who still works, is very fit & looks no nearer to giving up on anything (especially life itself), I would let your sister lend him the 10 grand. If she thinks she is going to do well out of it. I believe that, unless your dad suffers from very ill health, she is going to be very disappointed. I would personally not be prepared to invest 10 grand based on the average life expectancy in this country heading towards 80:j.

But let her lend him it as most of all, your dad gets to play with 10 grand that HE never has to pay back.:beer: Think about him & don't worry about an inheritance that you will possibly never see anyway for reasons already mentioned.

margaretclare

snake16 wrote: »

As someone who has an 83 year old father in law, who still works, is very fit & looks no nearer to giving up on anything (especially life itself), I would let your sister lend him the 10 grand. If she thinks she is going to do well out of it I believe that, unless your dad suffers from very ill health, she is going to be very disappointed. I would personally not be prepared to invest 10 grand based on the average life expectancy in this country heading towards 80.

But let her lend him it as most of all, your dad gets to play with 10 grand that HE never has to pay back. Think about him & don't worry about an inheritance that you will possibly never see anyway for reasons already mentioned.

Great! I needed a giggle on this chilly morning. I agree. Barring things that might come out of the blue, which last week caused my DH to be close to knocking on the Pearly Gates (nearly but not quite, thank God!) anyone who has survived past age 65 can easily see their century.

We are the healthiest population cohort there has been, I've heard us called the 'golden generation'. Thanks to wartime rationing we had enough to eat but not too much, none of the 'baddies' like excessive sugar and certainly no junk foods, ready-meals or take-aways. We took exercise as a matter of course, walking or cycling everywhere. Smoking was rife, of course, but I don't think people started on it at quite such a young age as they do now.

DH and I are hoping to see our silver wedding, at which time we'll be 91 and, we've been told, it is possible.