House ownership quandry

xylophone

Yes, accidents happen - but they are very rare.

But people still take out insurance.....

It seems to me ( but I am no expert) that the OP and his wife and MIL were not given accurate advice by the solicitor - had the house been registered as a joint tenancy after MIL ( when capable) first mooted the idea, this situation would not have arisen.

An accident ( or illness) could happen - ( and remember that dementia does not necessarily imply poor physical health).

An old friend of mine was assisted a great deal by her nephew and his wife - the wife developed a terminal illness and predeceased my acquaintance who lived well into her 99th year.

AdrianC

xylophone wrote: »

An accident ( or illness) could happen - ( and remember that dementia does not necessarily imply poor physical health).

Indeed. But nor does somebody whose alzheimer's is advanced enough for them to now lack capacity have a long life-expectancy, simply from the effects of the disease.

But that's beside the point. I was being delicate about asking if this was foreseeable through something unmentioned.

TBagpuss

If the house is held as joint tenants then it passes automatically to the survivor(s) on death, but if any party severs the tenancy then the presumption would be that the property was held in equal shares, so if OP, his wife and MIL held as joint tenants then the solicitor is correct and this could leave MIL vulnerable, although her interests could be protected by way of a declaration of trust seting out that she had a right to remain in the property during her lifetime or unless she permanantly vacates it to move to full time care.

Alternatively the house could be owned by you all as tenants in common in which case MIL could own 50% and OP and his wife 25% each, with them making wills to leave their respective sahres to each other.

If OP's wife is the sole beneficiary under MILs will or is an only child, then on MILs death, OPs wife would own 75% and OP 25%, however, they cpould then chose to change from TiC to JT at that point, or to alter their % interests.

OP, if your wife died before you but after MiL you might well be entitled to make an Inheritance Act claim on the basis that you were financially dependent on your MiL, if at the time of her death you were living in the property. You might also have a claim uner resulting trust laws on the basis of your investment in the propeperty.

You and MIL should each have (or take) separateand independent advice.

Whose name is the hosue in now, and does MiL still have capacity?

grazb75

TBagpuss wrote: »

Whose name is the hosue in now, and does MiL still have capacity?

The house is in joint names, MIL and my wife. My MIL does not have capacity to make decisions any longer.

AdrianC

grazb75 wrote: »

The house is in joint names, MIL and my wife. My MIL does not have capacity to make decisions any longer.

Does anybody hold PoA for your MiL?

xylophone

Does anybody hold PoA for your MiL?

The OP and his wife it would appear - post 1 above.

At the time MIL was able to still make decisions despite the fact that we had power of attorney.

getmore4less

The MIL interest could have been protected by Life interest in the part that was being bought out by the daughter.

That does have IHT consequences but they may not have been relevant if the MIL estate was not large.

grazb75

getmore4less wrote: »

The MIL interest could have been protected by Life interest in the part that was being bought out by the daughter.

That does have IHT consequences but they may not have been relevant if the MIL estate was not large.

Not being legally minded, can you please explain a bit more?