Brother to retain parent's house

2

Comments

  • JuneBow
    JuneBow Posts: 302 Forumite
    If your brother owned any share of the property and continued to live in the property at a time when the property was being assessed for means testing, the valuation of the remaining parent's share would be nil. The local authority charging guide (CRAG) does not put a figure on what proportion the remaining resident has to hold for the figure to be nil.
    So if your brother has not the means to purchase the property he could purchase a share in the property. It could be as small as 1%. It is also not necessary for the funds to be transferred to your parents. The amount could be left owing as a loan.
    However, when it comes to means testing, the value of the outstanding loan would be taken into account.
    So if your brother bought a 1% share in the property for £20,000 but left the amount outstanding as a loan to your parents, the value of the £20,000 would be included in means testing.
  • Savvy_Sue
    Savvy_Sue Posts: 46,012 Forumite
    Name Dropper First Post First Anniversary
    JuneBow wrote: »
    If your brother owned any share of the property and continued to live in the property at a time when the property was being assessed for means testing, the valuation of the remaining parent's share would be nil. The local authority charging guide (CRAG) does not put a figure on what proportion the remaining resident has to hold for the figure to be nil.
    So if your brother has not the means to purchase the property he could purchase a share in the property. It could be as small as 1%. It is also not necessary for the funds to be transferred to your parents. The amount could be left owing as a loan.
    However, when it comes to means testing, the value of the outstanding loan would be taken into account.
    So if your brother bought a 1% share in the property for £20,000 but left the amount outstanding as a loan to your parents, the value of the £20,000 would be included in means testing.
    On the face of it, that sounds like a good solution. However, something I was going to suggest earlier was that your parents should take professional advice on their plans, the kind you can rely on, which may have to be paid for. You cannot rely on advice from internet forums, because you can't sue the pants of any of us if we give poor advice.
    Signature removed for peace of mind
  • JuneBow
    JuneBow Posts: 302 Forumite
    I think it essential to get professional advice on something like this.
    Forums are good to get an idea of things but there is not substitute for advice for which you pay, for exactly the reason you have given.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    Now the problem is my elder brother lives in the house, my parents have mentioned in the past they want him to have the house and that they have left the house to both of us in their will.
    Although this type of idea comes up quite frequently, I just cannot see the sense in leaving 'a house' to two separate people. Particularly in the case of you and your brother - he lives in said house, you live 300 miles away and presumably have your own residence, therefore the only interest you could possibly have in this house would be in gaining half its cash value. Your brother, by contrast, lives in the house and it has been his home for most of his whole life!

    'Their will' - they each have a will, or are both wills identical? What happens to the survivor whichever dies first?

    We've just come back from an appointment with our solicitor so - I suppose - I'm thinking more about this than I normally would.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • zen_dog wrote: »
    Hi Dunroamin, yes there is ambiguity in what the wanted, which I pointed out, I think they wanted to be fair.
    Hi Sleepless saver, Didn't realise that, I'll follow it up thanks.

    For future referrence, the info I used comes from the Scottish Government's guidance at this link. http://www.sehd.scot.nhs.uk/publications/CC2011_01.pdf . See para 7.003 for the over 60 disregard, but you may want to check out the rest as well. This is the guidance local authorities should be using when they do financial assessments.
  • zen_dog
    zen_dog Posts: 6 Forumite
    Hi, fully agree with the "get professional advice", but it's always good to go in with some good background info. I only found out on Monday that one detail of the will. I had always assumed the house would go to my brother, which I was OK with.
    As has been pointed out there may not be any need for either of my parents to go into a home, but what I have learned from my in-laws situation is that leaving it to the last moment doesn't give any options. Also don't want to stress my folks out if there isn't anything that can be done.
    Not sure about the "Will" v "Wills", is there such a thing as a joint will?
    Thanks for your positive comments, gives me something to go at.
    If anyone else is interested I tracked down the following website which was great for those in Scotland.

    careinfoscotland.co.uk
  • Mistral001
    Mistral001 Posts: 5,348 Forumite
    First Anniversary Name Dropper First Post I've been Money Tipped!
    edited 15 August 2012 at 7:23PM
    Professional advice might seem the option, but it really has to be the parents and/or brother that employs the professional. The Op could not employ a professional to give advice on someone else's property as far as I can see.

    A professional is not an information service. All advice will relate to a particular situation.

    I suggest the OP continues to search for information, but in reality it is not up to him/her.
  • margaretclare
    margaretclare Posts: 10,789 Forumite
    No, I don't think there is such a thing as a joint will. There can be 'mirror wills', which is what we have.

    There isn't a joint will because both people may die at different times and what happens to the survivor?

    Unless Scotland does it differently?
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • Errata
    Errata Posts: 38,230 Forumite
    First Post Combo Breaker
    A little information on joint wills and mutual wills here http://www.hmrc.gov.uk/manuals/ihtmanual/ihtm12063.htm
    .................:)....I'm smiling because I have no idea what's going on ...:)
  • Hi all, nearly same situation for me...my uncle went to live back with my grandma after his wife left over 20 years ago, it was a volatile relationship with mother and son until she had to go to a care home where she spent 3 years before passing away. My brother never paid rent in this time, never contributed to bills and such. My grandma left a will naming my mum and auntie (uncle's sister not wife) as execetours and the house was to be sold and split between the family of 6 (my uncle included). Problem is he refuses to move, it's been 3 years now and I've been to solicitors, my mum and auntie have been to try and uphold the will and no-one wants to help! He was under 60 at the time of my grandma passing, no disabilities or mental problems so could easily have moved. Nobody has anything to do with my uncle now but it seems we have to wait until he passes to be able to sell the house, in the meantime he's doing no repairs, and as my mum is execetour she's paying the bills! Anyone been in the same situation? I know solicitors say there's nothing we can do but wait but a will is a legal document so why can it not be upheld? Thanks!
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