House Ownership

boybig

Hi I posted this on Debt free wannabe board and was advised to post here as well:

Hi - not sure if this is the right place to post. I would be grateful for any advice on the following:

I have a son aged 24 from my first marriage (wife now dead). Son lives with my Mum in her house which is jointly owned by Mum and myself. They live over 400 miles away together with son's girlfriend. I have my own house which I share with OH and another son aged 12 (son with present OH).

Mum now wants to change her will and leave one third of the house to me, one third to each of the sons. This would entail me signing new agreements and relinquishing the half I own.

My relationship with son who lives with Mum has completely broken down. I still have relationship with Mum. Son does not work and does nothing around the house i.e. simply DIY for Mum. Mum is "blinkered" and does not want son "left out".

What is the best way around this situation? What is the cheapest way in terms of capital gains tax and inheritance tax (of which I have no knowledge whatsover).

1. Do I get Mum to will her half of house to me. Then do I sign a legal agreement saying that on her death house will be sold and all the estate will be divided equally three ways?

2. Do I relinquish my half of house and sign new agreements so that ownership is split three ways?

3. What are impliactions of son already living in house - to my knowledge he and his girlfriend pay no rent whatsover. Does girlfriend have any rights?

Any implications with any of those on inheritance tax or capital gains tax?

I have owned half of the house for over 15 years.

Will I be liable for any repairs, unpaid council tax etc re. son who does not work and is living at house?

I'm sorry for long post and its a bit complicated to say the least.

At the end of the day I need advice on the easiest solution and cheapest solution for those left after Mum has passed away.

I will be contacting a solicitor in any event but would like to be armed with some slight knowedge and anyone's else' advice or opinion.

Many thanks in advance.

fengirl_2

It would help us to know, for a start:
1. The approximate value of your mum's estate, including her share of the house.
2. The value of the first house and its original cost.
3. Whether you have ever lived there.
4. Are you married?

boybig

1. The main thing is the house - approx value £250k - savings approx £20K
2. The house oriignally cost £17,000 and is now worth approx £250K.
3. I lived there permanently but moved out when I bought my own house 16 years ago.
4. Yes I am married.

lincroft1710

Why would you want to give your half share of the house to your mother so she can rewrite her will. She could well change her mind and either include other people or exclude one of the 3 proposed beneficiaries.

At present she has a half share and could split it equally between your 2 sons.

noh

lincroft1710 wrote: »

...................
At present she has a half share and could split it equally between your 2 sons.

Depends on whether the present ownership is joint or tenants in common.

Pumpkinface_2

I am probably not really sure I understand what you want to achieve. So my comments are that first of all you cannot "get your mum to will her half of the house to you" - it is entirely up to your mother what she does with her share of the house. By the same token, you have no obligation whatsoever to relinquish your share of the house and have ownership split in another way if you do not wish to do so. Your mother cannot say that the house should be split three ways upon her death, she can only say what should happen to her half.

You would not be liable for unpaid council tax, the people living in the house are responsible for council tax. I would assume you would wish to protect your investment by ensuring any necessary repairs to the property are taken care of. You and your mother as joint owners would share the cost of these.

zzzLazyDaisy

Pumpkinface wrote: »

I am probably not really sure I understand what you want to achieve. So my comments are that first of all you cannot "get your mum to will her half of the house to you" - it is entirely up to your mother what she does with her share of the house.

Actually, not necessarily. If the mother and daughter co-own the house as 'joint tenants' then when one dies the house passes automatically to the other. It does not form part of the estate and cannot be disposed of in the will.

Since joint tenants is by far the most usual way to buy a house in joint names (the other way being tenants in common) the first and most important thing is to establish how the house is registered. A copy of the title certificate can be obtained from the land registry online for about £3.

Op has been asked this question on this thread and on her other thread but so far has not answered it. Without this information anything else is just pure guesswork.

boybig

Have now received some paperwork which looks like Mum is asking me to agree to change from joint tenants to tenants in common. Equal shares. Are there any tax implications for me if I agree to this?

Mojisola

As things stand now, if you die first, your Mum inherits the whole house. If she dies first, the whole house is yours.

If you agree to changing to tenants in common, you each own half of the house and can leave your half in your will to whoever you choose, as she can. If she is intending to split it between your sons, they will own a quarter share each and you will own half if she dies before you.

luiccia

boybig wrote: »

Have now received some paperwork which looks like Mum is asking me to agree to change from joint tenants to tenants in common. Equal shares. Are there any tax implications for me if I agree to this?

I don't think your mother needs your agreement.

Mojisola

luiccia wrote: »

I don't think your mother needs your agreement.

luiccia right, you don't have to agree to it - all your mother has to do is notify you that she wants the type of ownership to change.

It shouldn't make any difference to your tax situation. There will be Capital Gains Tax to pay when the house is eventually sold.