Probate - Advice on best solution for House ownership

sloughflint

slummymummyof2 wrote: »

I contacted their probate helpline and spoke to someone who gave me some advice about itc's services,

Not quite the same as the free probate advice that the probate line offers on 0845 302 0900 now is it?

slummymummyof2 wrote: »

Sorry - should've said... as far as I could understand from their website they don't charge for advice or call outs.

From the website or the phone conversation that you later expanded on?

slummymummyof2 wrote: »

Obviously Sloughflint has an issue with me (or more to the point ITC!)

Indeed I most certainly do have an issue with the many rogue companies around that prey on the unaware and all the spamming that goes on on these forums.:mad:

Now whereabouts is this mention of self help packs and why the keen interest with this thread for the last few hours?;)

Rouseman

localhero wrote: »

Hi Rouseman,

To answer your questions, we need a bit more info:

• Does your father currently live at the property?
• Does he have a financial interest in the property? (Contributed in any way towards the purchase/improvement)
• Why does he feel entitled to a percentage of the property?
• Why did your mother cut him out of the Will?
• What is his financial situation - ie can he afford to live elsewhere?

Hi Local Hero

Answers as follows:

- Does your father currently live at the property? - Yes it is his home and has lived there for 30 years.

- Does he have a financial interest in the property? (Contributed in any way towards the purchase/improvement) - The house was fully owned by our mother in her name only. My father did help towards its purchase & throughout the years has maintained and improved.

- Why does he feel entitled to a percentage of the property? - He wants security and feels that by having a 50% stake in the house this will give him that.

- Why did your mother cut him out of the Will? - My mother did not really trust his side of the family (brothers), she did it (I think) to protect him and take the house out of the 'LA means testing' areana. But unfortunately this is speculation and my mother really discussed her reasons...

- What is his financial situation - ie can he afford to live elsewhere? - No he could not afford to live elsewhere...

Just not sure on who to talk to to advise me of the various finnancial \ legal options I have...
I have seen a solicitor and they just mention Life interest Trusts...

monkeyspanner

I think lazydaisy covered most of the points.

I can see how your father might feel uncomfortable and you and your brother could allow him to inherit 50% of the property if you are sole beneficiaries by having a deed of variation drawn up to change the terms of your mothers will. This could be an absolute ownership or lifetime interest in the property.

If you do intend to let your father remain in the house indefinitely you both need to make some sort of provision in case either of you predecease your father otherwise your wills could impact his continued tenancy.

You could try www.counselandcare.org.uk for advice but I think it may be out of their usual area.

localhero

If your father has contributed financially towards the house - irrespective of who the legal owner was or is now - he will have a beneficial or equitable interest in the property.

In addition he would have a fairly good claim under the Inheritance (provision for families and dependants) act 1975 against your mother's estate for her failure to make adequate provision for him in her Will.

I think the simplest way of dealing with this is for you and your brother to execute a Deed of Variation and there are two main choices. You give him a percentage of the value of the house outright - depending on what his `share` might be.

Or you give him no capital, but a right to live in the property rent free until he dies - aka a life interest.

From you and your brother's perspective I would favour the life interest route for the following reasons.

1) He cannot give away the capital to a new wife or anybody else
2) Since he doesn't own the capital this cannot be touched if he were means tested for long term care
3) You will not incur Capital Gains Tax when he dies
4) He will be entitled to a 100% uplift of his nil rate band allowance in the year he dies if the house was your mother's main asset
5) He has security for life
6) If you or your brother have financial or marital difficulties the property cannot be sold without his say so

There are various other options and the pros and cons should have been explained to you. A solicitor qualified in this area will be a member of STEP - give the high street solicitors a miss.

Rouseman

Hi Local Hero
Thankyou for your reply.... I am thinking a 'life interest trust' but am concerned that further down the line the Government may change the law which may 'retrospectively' effect the strengths of the trust??

sagalout1954

This is a useful site www.hmcourts-service.gov.uk/cms/infoabout.htm Wills/Probate etc being under the alpha 'W' of course!

I wouldn't use the Deed of Variation to give him a stake in the house, however unlikely he can then leave his 'share' in his own will to anyone he pleases which clearly wasn't what your mother wanted. If you give him the life interest (which does sound fair and will give him security), don't forget to have it absolutely clear who is responsible for the maintenance of the property.

It's a shame and too late now, but there were better ways for your Mum to write her will ensuring you and your brother would evantually inherit the house, whilst leaving your Dad secure for the rest of his days - out of the reach of the LA if that was her intention. Sadly, this has left him in a vulnerable position, must be a worry for him.

Good forward planning (and expert advice) when planning our wills does save the next of kin from a whole lot of aggravation at a time when they least need it.

margaretclare

Your poor Dad. I think he has been very shabbily treated. He must be devastated, poor man.

I note that (1) in your list above says 'provide security for Dad' but isn't this humiliating, taking away his independence and any say he may have in the matter? How awful having to rely on your offspring to 'provide security'. Widowhood is bad enough without this on top of it.