Leaving partners house to our three children?

BungleGirl

This isn't really a tax question - I have posted here because I think that what I want to do is often related to reducing inheritence tax and I thought that those that frequent this board might be the best people to ask.

I have lived with my partner for three years. The property and mortgage are in his name only. We bought our current house in July 2004 for £173,500 with a tiny mortgage of approx. £35,000. I have obviously contributed to the mortgage since then, but my partner had a huge chubk of equity that he had been responsible for.

I personally don't have a problem with everything being in his name no matter what anybody says. The issue is that we are about to sort out our wills. My partner is 13 years older than me so it would be normal to assume that he would die before me (this is really depressing stuff to be talking about!). However, my family has a history of early onset dementia (Alzheimers) and my mother at the age of 50 has no idea who I am and is in rsidential care.

I want to ensure that if I get Alzheimers my partners two children don't lose their inheritence because it needs to be used for residential care for me - after all their father had the equity before he met me. I also want to ensure that my daughter gets a little something for the contribution that I have made to the house that we share.

I would like to know if there is a way that the house stays in my partners name - if he dies before me the house ggoes to my daughter and his two children but I retain a right to live in it. If I then get Alzheimers the three kids don't lose their inheritence.

I know that I may get flamed for trying to avoid paying for care that I may need in the future, but we are in a situateion where the house is my partners and he is the person that worked hard to pay off his mortgage, paid chunks of it off with his inheritence etc. before he met me.

I'm hope that what I have posted makes sense, I appologise if it doesn't - it takes a few glasses of wine to be able to think about the whole 'I may well end up with Alzheimers before I am 50' stuff.

If this is something that I can do - do we need to see a specialist solicitor? Where do I find one that deals in such matters? Doeas it cost a fortune to arrange?

Please be kind to be as this is not an easy subject for me to talk/think about - I just don't want my potential illness to affect my children/stepchildren any more than my mothers illness has affected my sister and I - and that is tremendously in a purely emotional way.

mountainofdebt

I don't know if this will help but when a relative of mine died recently, his will stated that his partner (who had moved into his house 5 years previously) could live in the house for as long as she wanted (subject to certain conditions) but when the house was eventually sold she would get a %age of the net proceeds with the rest going to 2 other relatives.

Obviously this would be ok in the situation of your partner dying before you (you get to live in house for as long as you want but then when the house is sold, his 2 daughters perhaps getting a bigger share than you/your daughter) but if you did fall ill how could you ensure that your daughter isn't disinherited?

One way may be to have the house owned (and I think its called being tenants in common) where by your partner owns a larger %age of the house in his own right and you the remainder in your own right and then his will states that you can live in the house after his death for as long as you want and when it is sold, his share of the house proceeds are given to his daughters.

However I am no legal expert and others - and more importantly your solicitor (who I would definitely get this sort of will to draw up) - may see problems with this solution.

silvercar

I think you are very brave and strong to think about these matters now.

Treatments for, and understanding of, Alzheimers are improving all the time and you won't automatically inherit it.

YOu really need to see a solicitor who specialises in wills and inheritance. I would have thought the property being in your partner's name would mean there would be less chance of it being taken to pay for your care. His will would be written to leave it to the children (in whatever proportion) with a life time interest in living in the property for you.

Whatever it costs to sort this out properly will be worth it if it gives you peace of mind. Reading your post I can see the emotional burden you have faced from your mothers illness and your desire to protect your immediate family. I really would suggest going to see a solicitor rather than using the cheapie will writing agencies that have sprung up; you need the reassurance that you have things sorted.

We all inherit from our parents, emotionally and physically. Your children will have benefitted from having a lovely caring mother, don't feel that you are a burden by having Alzheimers in your family - we all come as a package deal. Your goodness shines out in your posting.

Dora_the_Explorer_5

It's always a sensible idea to think about what the future might hold. Hope this helps.
The property is owned by your partner, so the local authority could not place a charge on it to pay for your possible residential/nursing care fees as it is not your asset. Just as they couldn't put a charge on my home for your fees because my home isn't your asset.
The local authority will require the fees to be paid by your if you have savings jointly or in your own name above £12k 'ish. Below that amount the LA will fund all care costs. You don't need a specialist solicitor to draw up wills, most solicitors these days are fully up to speed about LA charges and the best way to take possible future charging into account.
I wonder if you've thought about giving your partner Enduring Power of Attorney? It doesn't have to be registered so it becomes operational until it's needed, and for some people it may never be needed. Setting it up has to be done whilst all those concerned have the capacity to understand exactly what it means, and there's more information on this on the Court of Protection website.
There is more downloadable information about care home costs and assets on the Age Concern website. It might be worth having a read around the Alzheimers Society website also and it will have information on early onset alzheimers. Best wishes.