Family member in house during probate

madbadrob

Thx Dzug that one had me scratching my head

jackyann

I too have lived in a house whilst probate for it & estate was going through, and it's no problem as long as beneficiaries all agree. Good idea to keep notes of agreements, sign letters agreeing to this set-up, or similar (just in case)

This however, is different to "signing over" the house, or any other part of an inheritance. IHT has been mentioned, but I am not sure about "deprivation of assets" should a beneficiary need to claim benefits or care home fees. I know it's an issue if one declines an inheritance in order to continue claiming benefits, but I'm not sure what is a reasonable interval.

I was going to post about a friend's situation, but someone may answer it within this thread. If I sign over or decline part of an inheritance, then say, a year later need to claim benefits / go into a care home, what is the legal situation? I can't find any information.

Mojisola

jackyann wrote: »

If I sign over or decline part of an inheritance, then say, a year later need to claim benefits / go into a care home, what is the legal situation? I can't find any information.

If you knew or could reasonably anticipate that you would need benefits or care, it would be counted as deliberate deprivation.

jackyann

Thanks Mojisola. This is about a lady in her early 70s with (now) no close relatives. She is in good health, but realises that she may, at some indeterminate point, need care. She has a flat worth, say £150k & savings at the moment of £20k.
If need be, I'll post in a separate thread.

Mojisola

jackyann wrote: »

Thanks Mojisola. This is about a lady in her early 70s with (now) no close relatives. She is in good health, but realises that she may, at some indeterminate point, need care. She has a flat worth, say £150k & savings at the moment of £20k.

These days, that's young!

Very few people actually go into residential care. If she's in good health now, there's no reason to believe that she will need care in the foreseeable future.

jackyann

Thanks Mojisola!
She will take legal advice, but wanted to get things straight in her head before making her decision (she is a precise & careful person). She inherited the house in question under an old will; and knows that the deceased wished for his partner & her young son to have his house (he was due to make a will the following week!) and she feels it only natural justice to follow that.
Although she is "not that kind of person" I have privately thought that being this generous will cement her relationship with this young woman & her child. My friend has no real living relatives now (apart from the traditional distant cousin overseas).

Sorry for hijacking the thread, OP! I do hope you have received good advice here, and that all goes smoothly.

pidleynet

No probs. re hijacking the thread!


To explain my situation a bit better, I have inherited the house jointly with my sister, following mums death last month. Dad died 3 years ago. As my wife has decided to take off and I am obliged to give her half of my current home's value as part of settlement (+cash) the proposal is for her to take my mums home and I will give my sister half of it's value.


All is agreed with sister. Wife will move in as soon as current tenant is clear, and I will sort out the transfers etc. when probate is granted.


I will need to transfer the house to wife's name (I have found the forms to do this on land registry site). The house is worth about £160k so will be paying my sister half of that. Therefore, I'm assuming no Stamp Duty to pay?


Thanks to everyone who has contributed.

madbadrob

I dont wish to pry but is your house worth more than the 160k that your mothers house is worth? I would assume that it is if this is the course of action you are taking. Good luck with it all. Divorces are messy things I know. Mine cost me a tidy package as well

Rob

pidleynet

Without putting all my finances on the line, my house is worth more than double what mum's house is, hence the +cash caveat I have.


Have other issues such as stuck probate due to wills being filed with a solicitor that went bust, discussed in another post.


This forum has been invaluable, and thanks again to all those who offer quite expert advice for free

madbadrob

Pidley all the best for your future and sorry for your loss