buying property with parents!

nessie_1

We are thinking of buying a house with my elderly parents, but what would happen if one or other of them die soon after moving in tog', or if one of them have to go in a home.We would both be putting the sam amont into the property. Would we have to sell the house, to pay for fees for home or sell the property if one of them die!

seabright

What would happen depends on how the purchase is structured and how the ownership is agreed. You need a Declaration of Trust agreement setting out how much each party put in, what happens with regard to maintainance, repairs etc and what happens in the event of someones death or incapacity.

You should all update your wills at the same time too.

You can structure the purchase and ownership in pretty much any way you choose (within legal and tax constraints) to suit your individual circumstances.

Usually, if someone has to go into residential care and others still live in and part-own their proeprty, that property wouldn't be sold to pay fees.

If a person dies, their share would form part of their estate and it would be conceivable that a property might need to be sold if that person had left their share to someone other than a co-owner and if there was no other funds in their estate to pay the legacy.

That's why it's important to agree what you all want in advance, make a Declaration of Trust and get your wills sorted. Doing this is never money wasted, IMHO as it can save so much heartache and money further down the line

nessie_1

so it would not matter if we bought the property in all our names, it would not be better to do it just ours and not my parents?
Do we have to be tennents in common as apposed to joint tennants?
so there is no way if one of my parents had to go into a home the rest of us would be forced to sell to pay the fees!
Also, would there be any tax implications if my parents do not live long after we have moved? forcing my husband and i to sell.

timmyt

nessie_1 wrote: »

so it would not matter if we bought the property in all our names, it would not be better to do it just ours and not my parents?
Do we have to be tennents in common as apposed to joint tennants?
so there is no way if one of my parents had to go into a home the rest of us would be forced to sell to pay the fees!
Also, would there be any tax implications if my parents do not live long after we have moved? forcing my husband and i to sell.

keep the parents off would be even better if they are happy to be off. tenants in common therefore is not relevant.

no obvious tax consequences as CGT uplift (wiped out) on death and they will not be giftinganything during life