Mother in law selling house

xylophone

MIL's brother would like her to come and share his home.

I wonder whether she happens to be a brilliant cook and housekeeper.... cynical old me....:)

One assumes that they have a good relationship to be even considering the arrangement - however, MIL might like to give it a few months on a trial basis before selling her home?

Perhaps she could live with her brother during the week and pop home at weekends to keep an eye on things.

If she then chooses to sell, she can certainly save or invest the money as best suits her situation.

They will do well to consider what is to happen if the brother pre deceases his sister - would his grant an interest in possession to his sister or is she perhaps the person to whom he would want to bequeath his property anyway?

lisyloo

Would it be seen as deprivation of assets?

Not everyone needs long term care by a long shot, but if she gave everything away and then threw herself on the mercy of the state it can be seen as deprivation (you probably didn't mean giving ALL of it away).


I would strongly suggest to anyone not to throw themselves on the mercy of the state as I've recently had the job of looking around nursing home and some are very poor and not necessarily covenient for family or even spouses, in fact some are downright disgusting.


There is a financial solution.
You can buy a care needs annuity.
The insurer concerned would look at her health (in detail porbably) and then say we want £X to cover your care needs.
My FA said this is usually around 3 years of care costs.


So she could if she wanted pay a lump sum for the security of knowing her care fees would be covered.
The upside is the peace of mind and she might even benefit financially.
The downside of course is that she might never need care and have spent a large lump sum unnecessarily.


Most important she need a plan/contingency for him dying first and also them fallling out or deciding not to live together anymore. For example what if he finds a partner he wants to marry??

AlexMac

chelseablue wrote: »

The brother has never married...

is usually obituary shorthand for being gay... Which of course is totally inconsequential, but ...

chelseablue wrote: »

...I believe his will leaves everything to my mother in laws 2 children ...Good point about what would happen to MIL if the brother died first, something to ask/think about

is very relevant. As is the issue of what happens if the brother establishes a new relationship.

When we made mirror wills recently, my wife and I asked if we could insert a "no bimbo (or himbo)" clause to prevent children and grandkids being stripped of their inheritance if, post mortem, of one of us, the widow(er) should get gaga and/or fall prey to a younger model?

Our solicitor observed that this is so complex, that you just had to decide whether to trust each other; especially if the kids are product of an earlier marriage.

She then added the observation that, in her experience, and in the event of a dispute over the will or even a simple one, it wasn't the kids who'd create a fuss, or worse, force a sale. It would usually be the kids spouses who would turn the screw...

Another thought which is a bit oblique is whether either or both of the MIL/Uncle have considered power of attorney while still in sound mind; we know of people, only my age, who lost mental capacity before this could be set up, which was extremely distressing for offspring

Red-Squirrel_2

Late 60s is pretty young, she could be looking at 20 or more years of this arrangement if she's healthy and has good genes.

Is she recently widowed by any chance?

lisyloo

that you just had to decide whether to trust each other

Someone can write a new will whenever they want and don't need to inform their spouse - so a no bimbo/himbo clause seems useless to me.

is whether either or both of the MIL/Uncle have considered power of attorney while still in sound mind; we know of people, only my age, who lost mental capacity before this could be set up, which was extremely distressing for offspring

My MIL refused to set up an LPA (never wanted to lose control) and lost capacity.
We did not have any issue with care decisions - hospital/care homes agreed with all our decisions - but then there was never anything contencious.
For property affairs it is expensive. I'm currently waiting for the court to send me deputyship. Luckily the application fee of £400 was waived for my MIL.


An LPA is a good idea for anyone of any age. I have an EPA which I made at age 39. Would make things a lot easier for my spouse in not having to wait for probate.

chelseablue

Red-Squirrel wrote: »

Late 60s is pretty young, she could be looking at 20 or more years of this arrangement if she's healthy and has good genes.

Is she recently widowed by any chance?

Her husband died in 2014

Red-Squirrel_2

chelseablue wrote: »

Her husband died in 2014

If it were my family I would be worried that she was committing to her 'old age' living situation at actually a pretty young age. Lots of widows in their sixties go on to remarry, or even to go travelling or move abroad, I would worry about her limiting her options for her future.

I would certainly at the very least strongly suggest a trial period as I'm assuming they haven't lived together since they were children!

Sea_Shell

lisyloo wrote: »

An LPA is a good idea for anyone of any age. I have an EPA which I made at age 39. Would make things a lot easier for my spouse in not having to wait for probate.

Just as an aside, AFAIK power of attorneys cease on death, so won't help avoid probate. (asset dependant)

lisyloo

Sea_Shell wrote: »

Just as an aside, AFAIK power of attorneys cease on death, so won't help avoid probate. (asset dependant)

Yes you are absolutely correct.
It!!!8217;s for if I!!!8217;m incapacitated.

It would be quicker and cheaper than going via Court of protection.
Thanks for the correction.

franklee

The property owned outright is MIL's security knowing she has a home. I would not give that up lightly. If she really wants to live with brother long term I would suggest they consider her buying half his property if she wants to sell hers. Otherwise if brother falls on hard times (needing care, needing income, or dying first and estate having to pay tax / going elsewhere) MIL my find herself homeless. Her remaining saving may not then be enough to buy a property.

If they own the bungalow 50/50 they could also split maintenance/running costs etc. Otherwise would MIL pay rent? Will bother pay for repairs?

Of course depending on relative incomes and assets that may or may not be the best plan.

There are many other options.

Bother giving MIL a life interest in the property. Any deprivation of assets on his part?

Any deprivation of assets on her part?

MIL keeping her home and letting it is an option but being a landlord is a big commitment.

I'd suggest I MIL and bother each get independent legal advice from a solicitors specialising in wills/inheritance planning so they are talked through all the what if's and how they can be planned for to protect the long term security of both.