How to divide three into four.

gbee_2

I wonder if anyone has been in a similar situation or has any ideas...

I wonder if anyone has been in a similar situation or has any ideas...

My separated parents own 3 properties and have 4 daughters (all adults).They want to split the properties between us but we are at loggerheads as howbest to do it.

The easiest solution would be to sell all three and split the money (inheritancetax applicable) however this is not really possible as my mother lives in onehouse and my father in another and so they would be left homeless (the thirdlies empty – due to its sorry state).

It has been suggested for me to buy my mother’s house for around £20k lessthan its value (mortgage would be required) and use half the money to give toone sister a cash lump sum (no strings attached). I in turn, get a house.However my issue with this is that I am having to take a loan and pay intereston a property that I wouldn’t really choose to buy. On top of that, lots ofrefurbishment is required! My mother would then leave and either live with hersister or come to some sort of agreement with the property in which my fatherlives (living arrangement/sell).

Another property would be split 50/50 between 2 sisters. They would probablysplit the place into 2 flats or jointly sell together and split the cash(though would probably be sold under auction due to its condition and so thereis a question as to how much money they would get).

Any ideas/similar experience. Is splitting 3 into 4 impossible? What isclear is that my parents want rid of the properties and both do their ownthing.
Don't even get me started on who will pay for their care later down the line!!!!

:idea:

Gbee

arbroath_lass

Sorry, I don't understand what your parents want to achieve.

You say they can't sell because they live in two of them then say your mother will move out.

Get realistic valuations for all three then sell the unoccupied house and your mother's. Mother gets the value of father's house and the remainder is split between them?

Alikay

Since both parents are still alive, you're only guessing at what will be left when they both die. Perhaps one or both will need to free up cash to provide themselves with care or income later?

peachyprice

I'm guessing they are 'at loggerheads' because neither want to leave their home?

The simplest, and fairest, solution, if they're adament they want to give you all something now, rather than an inheritance when they die, is to sell the empty property and divide that between you all and then give you all a quarter share each in the other two properties with the proviso that they live there until they die, with the propery to be sold at that time.

However, any plans they are making to give you their proteries now, rather than when they die will come under scrutiny for deprivation of assets should they need to pay care home fees. One thing you will need to discuss, if they have disposed of their assets and do need care homes, how will you and your sisters fund this?

I would be very careful in entering any financial agreement or taking out any mortgages on propeties whose value could dramatically decrease by the time your parents die.

Is there any reason it has to be now, rather than as an inheritance, which would be so much simpler all round?

balletshoes

the fairest, and simplest way as far as I can see, is to sell the empty property now and split the proceeds between all 4 children equally.

Then when one of your parents moves from their home and a decision has been made that they won't be returning to their home, that property is sold. If care home fees are needed, then nothing from the proceeds of the property comes to any of the children until that parent's death. Same with the other property currently occupied by the other parent. Then, and only then, the proceeds of the sale of the properties are split equally between all 4 children.

podperson

I'm sorry but I don't understand why you and your sisters are wanting money from their properties now. By all means if they want to sell the empty property and split the money between you all then that's up to them but otherwise it's going to lead to one or both of them having to move out of their home which it doesn't sound like they want to do. As others have said they may need the equity in those properties to pay for care fees in the future - if you and your sisters aren't prepared to contribute to that later down the line then I would leave the properties and just let them draw up in their wills what they want to do with them.

Mojisola

balletshoes wrote: »

the fairest, and simplest way as far as I can see, is to sell the empty property now and split the proceeds between all 4 children equally.

If your parents want to all the daughters to be treated equally, this is the best way.

Also, they should each leave their property to be sold and divided between the four of you. If two sisters are left one property and the other two the second property, there is a chance that the value of one home gets used in care home fees, leaving two sisters with nothing, but the other property is passed on. Cue major family split!

Read up on "deprivation of assets" before they give away any of their capital.

pigpen

I'd wait and see how much was left when they die. If they both end up in homes that might be very little.

Mojisola

pigpen wrote: »

I'd wait and see how much was left when they die. If they both end up in homes that might be very little.

Too late to write wills then.

ValHaller

I suggest that they transfer each property to all 4 of you as Tenants in Common at 25% each. And for them, it is job done.

The rest you should sort out between yourselves, selling and dividing the proceeds by 4 if none of you want to keep a property or buying shares off each other if that is what you want.

londonsurrey

There are lots of excellent suggestions that have been posted here as to how to achieve the split fairly.

Is there another objective here that has not been spelt out, e.g. to distribute the properties now, so as not to have any in the parents' names when the question of care homes comes up?

I ask as I'm a little nonplussed as to why it's all being gotten rid of now, before the residents have vacated them.