Inherited half a house

G_M

Option 1 - You keep your half and own jointly.


* own as 'Tenants in Common' and each write a will leaving your half to .... whoever you each wish (she might leave her half to her child, you might leave you half to her)
As Tenants in Common, also write a Deed specifying what would happen if you ever needed the money from your half eg you lost you job/whatever - see a solicitor for more
* you own as 'Joint Tenants'. If either of you die, the other owns the entire property
* Capital Gains Tax. If the property is ever sold, your half will be subject to CGT as it is not your main resdence
* she could pay you rent for your half (at whatever rate you choose). This gives you a small income (though taxable as income tax!) while she is still paying less than at present. Up to you.



Option 2 - You give her your half

* draw up a Deed of Variation to the will. That way you never own it as she inherits the whole property. There s no 'gift', so no Inheritance Tax if you die within 7 years
* you can never draw down on the money tied in the house (unless she gifts it back to you). Your inheritance is lost. This gives you less security in the future, but is your choice