Where to start ? Handicapped Sister & how to protect her money/inheritance

Duped77

Good morning...

I would really appreciate any support / direction on this situation... as the title says I just dont know where to start to get advice - so here seemed a reasonable starting point.

My sister is around the same age as myself (40) and she is handicapped and I want to ensure I protect her money. She lives with our father. She has about £20k in savings in the bank.

My father is in reasonable health - he has about £25k cash/bank savings and his house is probably worth around £300k.... the mortgage is fully paid off.

Currently he has no will and this obvioulsy needs sorting. My father and I just want to ensure that his money and my sisters money is 'protected'... when my father passes away my sister will come to live with me and my family and in time we will buy her a nice little property on our doorstep to give he some independance (which she is morethan capable of). Financially I am on firm ground - I don't need my fathers money - I just want to ensure we look after my sister when the time comes.

Would it make sense that my dads will states that his wealth is left solely to me rather than shared between me and my sister ? Our concern is that any money in my sisters name will eventually be, in some way, taken by the government to pay for her care or something.

Any thoughts on how best to approach ?

paddy's_mum

Duped77 wrote: »

Our concern is that any money ... will eventually be, in some way, taken by the government to pay for her care or something.

You need good legal advice because it might not be just the government who come after that money.

A divorce court judge might also want to take a share of it as a matrimonial asset, should that unhappy situation arise - and none of us can be sure that it won't.

paddy's_mum

You might also want to read the thread entitled 'How to protect sister's inheritance' further down this same page which discusses problems and points of view very similar to your own query.

Mojisola

Scope has advice about this -
http://www.scope.org.uk/support/families/will-trusts

It's definitely a job for a solicitor - try to find someone who has experience with the issue.

Duped77

paddy's_mum wrote: »

You might also want to read the thread entitled 'How to protect sister's inheritance' further down this same page which discusses problems and points of view very similar to your own query.

I did have a quick read of that - circumstances different although the thread titles are quite similar. Thanks

Duped77

paddy's_mum wrote: »

You need good legal advice because it might not be just the government who come after that money.

A divorce court judge might also want to take a share of it as a matrimonial asset, should that unhappy situation arise - and none of us can be sure that it won't.

Hi - thanks. My father and mother were divorced 20 years ago.... I dont think this is a concern.

paddy's_mum

Duped77 wrote: »

Hi - thanks. My father and mother were divorced 20 years ago.... I dont think this is a concern.

Perhaps but I didn't mean that. You mention "our" and "family" which leads me to believe that you are yourself a married person in which case, you can never assume that a divorce won't come your way and if it does, judges have the power to assume that all money held in your name belongs to you and apportion some of it to a previous spouse.

If you are not married, or in a relationship where assets are owned jointly, then it's a different scenario.

NordicNoir

Duped77 wrote: »

Would it make sense that my dads will states that his wealth is left solely to me rather than shared between me and my sister ? Our concern is that any money in my sisters name will eventually be, in some way, taken by the government to pay for her care or something.

Any thoughts on how best to approach ?

It would be much safer, for all parties, if your sisters inheritance was kept separate from your own.

Others have already mentioned the complications were you to divorce but there are many more along these lines - what if you died before your sister? If you left no will, your wife or children may inherit what should have been your sisters inheritance. If you needed some kind of means tested help in the future, your sisters share would make you look wealthier than you really were....lots of potential issues.

The best thing, in your circumstances, is to get proper advice, preferably from a STEP qualified solicitor. They would be able to suggest whether a trust may be a good idea or perhaps that your sister has a lifetime interest in your fathers complete estate, with it passing to you on her death. I am sure that they will be able to come up with lots of options available to protect your sister.

Yorkshireman99

Duped77 wrote: »

Good morning...

I would really appreciate any support / direction on this situation... as the title says I just dont know where to start to get advice - so here seemed a reasonable starting point.

My sister is around the same age as myself (40) and she is handicapped and I want to ensure I protect her money. She lives with our father. She has about £20k in savings in the bank.

My father is in reasonable health - he has about £25k cash/bank savings and his house is probably worth around £300k.... the mortgage is fully paid off.

Currently he has no will and this obvioulsy needs sorting. My father and I just want to ensure that his money and my sisters money is 'protected'... when my father passes away my sister will come to live with me and my family and in time we will buy her a nice little property on our doorstep to give he some independance (which she is morethan capable of). Financially I am on firm ground - I don't need my fathers money - I just want to ensure we look after my sister when the time comes.

Would it make sense that my dads will states that his wealth is left solely to me rather than shared between me and my sister ? Our concern is that any money in my sisters name will eventually be, in some way, taken by the government to pay for her care or something.

Any thoughts on how best to approach ?

Your dad needs to make a will ASAP. He should consult a STEP qualified solicitor who will advise on appropriate trusts that can be set up under the will.

Newly_retired

My mum did this, so that whereas I inherited half her estate, my disabled sister, who is not competent to manage finances, receives an annual amount from a trust, arising out of the return it makes. When she dies, her children will inherit the capital. This was done through a Trust solicitor. The amount my sister gets is not enough to affect her benefits, but it gives her a little extra money to buy Christmas presents etc. So it is possible to do something similar.