Mitigating risk of buying a property and allowing a family member to lodge

k3lvc

Hopefully this is in the right place but of not I'm happy for an admin to move it

M in L is currently buying a property for her to see out her retirement/life (currently approaching 70 and not in best of health but insisting on independence). She's due to complete w/c 12th Jan but during the christmas break has decided to let her son and young grandaughter move in with her once completed following breakdown of his relationship. The expectation is that he will make no direct financial contribution but that this will be a medium/long term arrangement.

Given her intention via her will is a straight three way split between her three children how does she ensure that he neither benefits further from being a resident of her property (either on death or move into care) nor that either of the other children are disadvantaged either financially or from a time perspective.

I've been asked to be an executor of the will but see the above as a potentially big issue in the future - whilst relationships are ok at the moment there's potential for big fall outs.

She can't be alone in this situation so can anyone recommend any reading before Solicitors opens again on 5th Jan

theartfullodger

As potential executor you have no legal standing until her demise: And she may revise her will before then anyway (eg leaving everything to son with him as sole executor, or deciding to leave everything to a new toy boy, or everything to the "Cat's Protection League" - no offence intended fo any of these): They have all happened, are perfectly legal & it is her money.

I would encourage her to assist son etc to live anywhere else but in that property: But it is her decision, her money, her shout.

If I were her & found a nominated executor telling me what to do with my assets or money I'd fire that executor & nominate someone else..

Cheers!

G_M

As artful says, this is her decision. As a trusted relative, you can of course advise her/make suggestions, but your future role as Executer is irrelevant.

The solution is for her to avoid drawing up a DIY will, but to see a solicior who can advise her of potential legal pitfalls (eg evicting her son and young grandaughter on death), and alternative ways of drawing up an equitable will.

She can even get a free will drawn up by a solicitor using a charitable scheme (leave a bequest to the charity in return for the free will), or via 'free will month'.

http://www.cancerresearchuk.org/support-us/donate/donate-money-in-your-will/free-will-service

http://www.macmillan.org.uk/Donate/Legacies/Willwriting.aspx

xylophone

M in L is currently buying a property for her to see out her retirement/life (currently approaching 70 and not in best of health

That's no age really - I know a couple of "creaking gates" who are both in their nineties.....

The MIL could specify in her will that on her death, the house is to be sold and the proceeds divided between the legatees.

k3lvc

theartfullodger wrote: »

As potential executor you have no legal standing until her demise: And she may revise her will before then anyway (eg leaving everything to son with him as sole executor, or deciding to leave everything to a new toy boy, or everything to the "Cat's Protection League" - no offence intended fo any of these): They have all happened, are perfectly legal & it is her money.

I would encourage her to assist son etc to live anywhere else but in that property: But it is her decision, her money, her shout.

If I were her & found a nominated executor telling me what to do with my assets or money I'd fire that executor & nominate someone else..

Cheers!

Thanks - as a 'trusted' (?) grown-up rather than in any future capacity as an executor I'm trying to help her understand that her written wishes may be compromised by her actions.

Am I right in assuming there is significant future conflict in her wishes if Son/Grandaughter are living in the property at the point of death ?

G_M

k3lvc wrote: »

Am I right in assuming there is significant future conflict in her wishes if Son/Grandaughter are living in the property at the point of death ?

No.

Where people happen to be living at the time of death does not in any way bear on what her wishes are. Her wishes are... her wishes.

But there may be difficulty in carrying out her wishes, eg if someone has gained property rights making sale of a property legally, or practically, difficult.

k3lvc

G_M wrote: »

No.

Where people happen to be living at the time of death does not in any way bear on what her wishes are. Her wishes are... her wishes.

But there may be difficulty in carrying out her wishes, eg if someone has gained property rights making sale of a property legally, or practically, difficult.

Thanks - you've answered the question I should have asked :rotfl:

getmore4less

Look at dependency provisions

ratrace

Its really up to her what she wants to do with her hard earned cash she could decide that after she passed on that the house be sold and split equally between the siblings and the son who is going to be living there finds alternative accommodation ie: puts down the money he receives to buy his own house

or she may decide that she wants to leave all of the house to the son and his kid who are going to be moving in with her to prevent him from struggling later on in life depending on his age of course

its really a serious subject that needs to involve all the people concerned the sad thing about money is that it can quite rapidly create problems between family members, its not the money itself thats the problem its people attachment to it

I see inheritance as a bonus and one should not rely or pin their hopes on it, one should still try to achieve as much as possible themselves and if any inheritance comes their way then thats great if not, no problem

sorry for the long post hope this sorta helps

Happy new Year

k3lvc

Thanks Ratrace - the issue is that she wants to give equality to the siblings, has stipulated equality in the will but the actions in allowing him to live in the property with her risks making future equality impossible if he decides to stay put in the property and assert any rights his living there might have given

Mojisola

k3lvc wrote: »

She's due to complete w/c 12th Jan but during the christmas break has decided to let her son and young grandaughter move in with her once completed following breakdown of his relationship.

The expectation is that he will make no direct financial contribution but that this will be a medium/long term arrangement.

In that case, she will providing for them financially and they will be able to claim on her estate as financial dependents.

He could be given a greater share than the designated one-third or could even be given permission to stay in the house until the grandaughter is 18. Either way, it would cost everyone money, paying solicitors and going through the courts.