Parent gifting house & remotgage!

Jenniefour

swanslegend wrote: »

He will be required to sell the property to fund his care fees and we will be entitled to nothing?

Correct. And what on earth is wrong with that if FIL's future interests really are priority?

The problem with this whole scenario, as painted by OP, demonstrates that there are different agenda's at work.

swanslegend

Let's not lose sight of what I am trying to achieve here. Of course we want a better life for my FIL, I did not realise that it was as complicated as this. My simple view (perhaps I was being a little naïve) was that we would buy the house from my FIL slightly less than market value, let him live there until his time is up and in the mean time he gets to enjoy the equity in his home. I will ensure that both myself and FIL will seek legal advice prior to anything being agreed

luckbox

As others have said, there seems to be a conflict on what might be best for FIL and what might be best for the recipiants of any estate. If this was my FIL and he wanted a lump sum like this then I would be encouraging an equity release.

If you go through with this and a new roof is required or something, you will have to pay up and then the fact that you have pulled the rug from the remaining 8 regarding inheritance that will surely cause frictions that could last the rest of your life.

For me, let FIL spend his money how he wants and if there is an estate to distribute at the end then consider it a bonus and not something expected and planned for

Mojisola

swanslegend wrote: »

What if we pay lump sums and monthly, then he needs the house for care fees as we wont have any title over the property. He will be required to sell the property to fund his care fees and we will be entitled to nothing?

Make them loans instead of gifts, to be repaid on his death or the sale of the house, whichever is first.

That protects your money if he needs residential care.

Jenniefour

swanslegend wrote: »

Let's not lose sight of what I am trying to achieve here.

In a nutshell, this appears to be the problem. What you are trying to achieve is a future investment for yourselves and some cash for FIL - they do not go together at all and present serious risks for FIL.

Of course we want a better life for my FIL, I did not realise that it was as complicated as this.

It's only complicated because there are other conflicting agenda's in there.

My simple view (perhaps I was being a little naïve) was that we would buy the house from my FIL slightly less than market value, let him live there until his time is up and in the mean time he gets to enjoy the equity in his home.

Fraught with risk for FIL.

I will ensure that both myself and FIL will seek legal advice prior to anything being agreed.

The person who really needs independent advice here is FIL.

OP, if you remove your own agenda then you will see there are several options for helping your FIL, as suggested in the posts.