Life Tenancy - House in Husband's Name Only

somethingidontno

For over 12 years, my husband and I have rented various properties from his parents. Neither of us work: I had to give up my career in 2004 to become my husband’s carer (we married later that year) and I have been disabled myself since 2009, as a result of doing all the household tasks he couldn’t. This is our second marriage and we each have two grown-up children from our first marriages. None of the children have ever lived with us as a couple.

Although we had our health issues, we were at least on an even keel both financially and emotionally. However, last December his parents gifted him the house we were currently renting; their health was failing and they wanted to avoid inheritance tax and ensure we had somewhere to live if they died and everything went to probate (my husband is sole heir).

The house was gifted to my husband on the condition that he would make a Will naming me as life tenant of his property if he should he die before his parents: they are in their eighties but still in seemingly better health than us! Thus if my husband dies before his parents, I can live in this house until I die, at which time the property goes to his two sons (as Remaindermen). The Trustees and Executors of my husband’s Will are me and my two stepsons.

As I had no say in either the gifting or the Will, I feel quite cheated: my independence and equality as a joint tenant has been taken away from me; I have no real status, being neither tenant nor homeowner. It is a strange feeling. Moreover, my two stepsons now know that I am only considered worthy of a life tenancy to their father and grandparents. I only agreed to live in this house/area so that my husband could keep an eye on his parents, but now I am stuck here and I feel so trapped.

As it is all now a done deed, all I want to know is where I would stand if we got divorced. We are both on disability benefits, so have no independent income (although my husband has the house, which he is not supposed to sell, as it is a gift ‘in name only’).

Cakeguts

I hope his parents have enough money to pay for residential care if they need it or there might be a charge on your house if it looks as if they have tried to deprive themselves of assets in order to get care for free.


Look up the rules on deprivation of assets.

silvercar

The house was gifted to my husband on the condition that he would make a Will naming me as life tenant of his property if he should he die before his parents:

Is this even possible?

Can you force someone to put a clause in their will?

I suppose if you divorce, your husband re-writes his will. If that breaches the condition of the gift, then the gift reverts to the parents and they pass it on to their son/ your husband unconditionally.

AdrianC

silvercar wrote: »

Can you force someone to put a clause in their will?

You could make the gift contingent on them doing that, yes.

But if they later changed their will, the gift can't be taken back.

Either way, OP, look at it from the parents' PoV. If their son dies intestate, then his spouse inherits everything, leaving their (blood) grandchildren without any stake in the property. While I'm sure they love their step-grandchildren, and you, blood is clearly thicker than water. They did not need to stipulate the life tenancy for you. They could have just gifted the property straight to their grandchildren, with a life tenancy for their son.

In one way, you are actually better protected through the life tenancy - you cannot lose your home through your own financial ill-fortune, and it will not fall within your assets if and when you need residential care. That apart, the only difference between you being left the property, and you being given a life tenancy, is what happens with it in the event of your death. You would, I'm sure, have treated all children - your own and your step-children - equally in your will?



Also, there's nothing to eventually stop your husband's children from varying their father's will to cut their step-siblings in, or simply gifting a share in the property to them.

xylophone

The house was gifted to my husband on the condition that he would make a Will naming me as life tenant of his property if he should he die before his parents:

although my husband has the house, which he is not supposed to sell, as it is a gift ‘in name only’).

Have your PILs taken qualified legal advice?

What has the death of your husband before his parents to do with the life tenancy?

Should your parents not have gifted the property into an "inter vivos" trust (in the hope of a PET) naming you and your husband as life tenants with their grandchildren as ultimate beneficiaries of the trust?

MoneyGeoff

Since your husband is now the owner of the property, ask him to gift half of it to you.

Mojisola

somethingidontno wrote: »

As I had no say in either the gifting or the Will, I feel quite cheated: my independence and equality as a joint tenant has been taken away from me; I have no real status, being neither tenant nor homeowner.

As it is all now a done deed, all I want to know is where I would stand if we got divorced.

Does your husband know that this arrangement is possibly going to break up the marriage?

If the house is in your husband's name, then its value would be taken into account if you divorced.

somethingidontno

My PILS also own the house that they live in and another rental property, so I am sure they have adequate provision for residential care; they are astute business people and would not have left themselves in a precarious position. They did indeed take extensive legal advice from their long-standing family solicitor, so I don’t know why this life tenancy has been chosen as the best option.

My husband’s health means that unfortunately there is a possibility that he could die before his parents. Irrespective of the property gifted to my husband, my stepsons (i.e. my in-laws’ grandchildren) would still be heirs to my PILS other two properties, so I don’t see why this house couldn’t have been put in both our names with the proviso that it goes to them when both my hubby and I are dead (is that the ‘in vitro’ option as mentioned by xylophone?)

If my PILS die before my husband, then he will be the sole heir to all three properties and will eventually leave them all to his sons – so whichever way you look at it, his children were always going to get what is theirs.

This is not about money or property but about my own personal security and future. I am almost 10yrs older than my husband, and I am also disabled and the fact that my husband now owns this property has changed everything. I was happier when my hubby and I were equal, i.e. both tenants to his landlord parents, but now I feel I have no status. What do I put on forms, for instance? I’m neither a tenant nor a homeowner! It is very demoralising.

I have spoken to him about all this, but he won’t really talk about it. I guess money trumps love.

greendoor665

Not sure what the problem is here?

The life tenancy gives you a secure future. Whatever happens you will have somewhere to live.

If the house was put in both your names and then your husband died before you, you could have subsequently changed your will so that so your husband's children didn't get anything.

Your PIL's intention seems to be to ensure both you and your husband have a place to live whatever happens, but that you or your children don't personally benefit financially from the gift. I think that's fair enough?

You haven't lost anything from this gift but you have gained a secure future.

need_an_answer

greendoor665 wrote: »

Not sure what the problem is here?

The life tenancy gives you a secure future. Whatever happens you will have somewhere to live.

If the house was put in both your names and then your husband died before you, you could have subsequently changed your will so that so your husband's children didn't get anything.

Your PIL's intention seems to be to ensure both you and your husband have a place to live whatever happens, but that you or your children don't personally benefit financially from the gift. I think that's fair enough?

You haven't lost anything from this gift but you have gained a secure future.

Totally agree with this.
you have gained a secure future whether you choose to live there is your decision and there is nothing stopping you moving in an eventuality or when you choose.

AdrianC

somethingidontno wrote: »

This is not about money or property but about my own personal security and future. I am almost 10yrs older than my husband, and I am also disabled and the fact that my husband now owns this property has changed everything. I was happier when my hubby and I were equal, i.e. both tenants to his landlord parents, but now I feel I have no status. What do I put on forms, for instance? I’m neither a tenant nor a homeowner! It is very demoralising.

Your personal security and future are totally unchanged. You can live there until the day you die. This has been protected with the "life tenancy" (and, yes, a tenancy means you're a tenant). Even if your step-children hit financial problems, and the property goes out of their ownership, your life tenancy is protected.



The ONLY difference which may affect how you "feel" about your "status" is whether you own the property or not - yet you say it's not about owning the property. That's the only thing it CAN be about...