Home ownership & Wills

denisec60

Apologies, this is probably in the wrong place; I couldn't find a more specifically appropriate sub-forum. Can I please ask that it be moved if not appropriate here?

The more I've researched and tried to understand, the more I've managed to confuse myself and I'd be grateful for some advice please. I live with a friend in a property we own together (i.e. a joint mortgage) as tenants in common. I'm not sure if this has any bearing on my actual question, which is regarding wills, but there is a Deed of Trust in place stating that I invested all the capital when purchasing the property and that on the sale of the property any equity (above the mortgage) is split 50/50 between us.

We now both want to make wills to ensure that upon the death of either of us, the property passes in whole to the other. We are trying to save money and use an on-line or low cost will writing service but I'm unsure, in light of the trust deed and the fact that we are not a "couple", whether that would be a suitable/reliable option. Otherwise, the wills (or a mirror will if that's possible) would be very straightforwards in that there are no other assets (other than a modest amount of money in bank accounts) or other properties involved.

Would we be better off seeing a solicitor face to face and paying the extra or is this less complicated than I've begun to think it is?

Many thanks.

TBagpuss

It is almost always sensible to see a solicitor and get proper advice. In particular it would be sensible to consider whether either of you has family members, so you can ensure that your wills aren't open to challenge by a family member who feels they ought to get something from one of you!

Having the deed will not prevent you from leaving your share of the property to your friend - the fact that you own as Tenants in Common means that it will not *automatically* go to them, it will form part of your estate so will mean that it's likelyto be necessary to get probate and that Inheritance Tax could be payable, depending on the value of the estate.

It would be possible to change to own as joint tenants, which would mean that the property passed to the other person automatically on death, without having to be left by will, however this option would potentially leave you disadvantaged if you wanted to stop living together or if one of wants to sell the property.
(you said that the trust deed provided for an equal split of capital after payment of the mortgage. Is that correct, or did you mean equal split after payment of the mortgage andyour capital investment? If it is only the mortgage, then you effectively own in equal shares and it may be worth considering transferring the property into joint names.

denisec60

Thanks so much for your reply. We did look at changing to joint tenants but that doesn't seem suitable to our circumstances and possible future circumstances.

I'm really not sure re the trust deed, I'd have to dig it out. At the time of purchasing the property, it was intended as a renovation project, i.e. to renovate and sell on for (hopefully) some profit. Friend was to help with renovations for a share of the "profits" when the property was sold.. not quite sure how to explain, but on the sale of the property and once the mortgage was discharged, the original amount that I invested would come back to me, along with 50% of any profit over and above the shared (50/50) related costs of selling.

That plan went out of window thanks to some serious health problems (mine) so we've ended up house sharing, in effect, but due my health arranging for wills to be made is something I really need to get sorted. I do have two adult children who we want the property to pass to eventually. All we really wanted to ensure for the time being is that upon the death of one of us, the property passes to the other initially, i.e. before going to my children.

I think we'll probably do as you suggested and use a solicitor. Money's tight but I'm coming to the conclusion that this is isn't something to scrimp on!

loubel

denisec60 wrote: »

I do have two adult children who we want the property to pass to eventually. All we really wanted to ensure for the time being is that upon the death of one of us, the property passes to the other initially, i.e. before going to my children.

In that case you should definitely use a solicitor to prepare your Will.

ethank

Agree with Loubel - this is complex! Speak to a Solicitor!

Brighty

So you're going to leave your half of the house to your friend, then when you're gone, hope they leave the lot to your kids and don't change their mind or make a new will leaving it to someone else??

Brighty

somethingcorporate

Brighty wrote: »

So you're going to leave your half of the house to your friend, then when you're gone, hope they leave the lot to your kids and don't change their mind or make a new will leaving it to someone else??

Brighty

This is a really valid consideration but it actually may be possible - it certainly is possible between spouses, I believe it's called a mutual will (I went to have my will done yesterday and the solicitor was explaining it to me). It sounds incredibly archaic and may only be between husband and wife but it may be possible.

If it's not, I think it is incredibly naive to expect your friend to look after your adult kids - if your property passes to them it will likely be theirs to do what they see fit with. There may be something you could do with trusts here but it's complex and you need proper advice.

IANAL.

Mojisola

denisec60 wrote: »

I do have two adult children who we want the property to pass to eventually. All we really wanted to ensure for the time being is that upon the death of one of us, the property passes to the other initially, i.e. before going to my children.

In that case, you don't want to leave your share to your partner because you will have no control what happens to the property if you die first. Wills can be lost (in which case the estate will go to the deceased's blood relations) or changed.

You will need to leave your share to your children but give your partner the right to live in the house and the right to sell and use the capital to downsize. Your children won't actually get their share until the second death.

Thrugelmir

Mojisola wrote: »

You will need to leave your share to your children but give your partner the right to live in the house and the right to sell and use the capital to downsize. Your children won't actually get their share until the second death.

Personally I would opt for the released capital to be passed to the children upon sale, if this is prior to second death.

Mojisola

Thrugelmir wrote: »

Personally I would opt for the released capital to be passed to the children upon sale, if this is prior to second death.

If the survivor only has half the capital to buy somewhere new and that isn't enough to buy a new property, it can mean that the survivor stays in an unsuitable house rather than move into a rented property.

xylophone

See a solicitor experienced in wills and trusts http://www.step.org/