Inheritance share and granny flats

gettingtheresometime

BrassicWoman said:

Sibling takes on majority care and has life disrupted. Has to be available, can't move house. loss of privacy, etc.
Sibling ends up with a bigger house
All seems fair, no need for any adjustments to inheritances. The loan seems daft, though. Give parents a liferent to protect their interests and be done with it.

Right up to the point sibling decides this isn't what they signed up for....then what happens?

bouicca21

I once considered an arrangement like that - but as everyone has pointed out there are loads of pitfalls.  I am so glad I didn’t do it.

pickledonionspaceraider

I have to say, I don't really see what the benefits for your sibling are, in all of this. Other than being on hand, having life disrupted, and loss of privacy. 

ukjoel

I sort of get it. Seen similar arrangements work well.
Your parents want to downsize. They want to stay near family.
Your sibling has a large plot and 180k builds a decent property (if the land is already there) so they end up with a bungalow or second property on their land. They cant afford the build costs so your parents give them the cash. Build is VAT free as a new build and they now own it. 
Your parents then basically write of their rent at the end of the loan so your parents pay for the build but dont own the property.

The bit about appointments, medical support etc is just white noise, possibly to support planning permission, and at the end of 15 years its unlikely they will chuck your parents out (but this is the bit you need in writing).... Also if your parents go into a care home the property wont be touched for costs as they dont own it.

Its a fairly smart way of reducing inheritance bills, but only you know how close your family is and the main risk is your sibling divorcing and their spouse wanting to sell up (once the loan has been paid off). 
I wouldnt have any issues with it - siblings rarely share parental duties and it the nearest that gets the call at 2am or does an extra shop a week for their parents. This way they are on hand, and your parents still get their independence.

Look at it a different way - If your parents said we are going into retirement flats where we buy the property but then pay silly high maintenance charges every month and can only sell back to the company at a value they decide, they would end up spending a lot more. If they went in a nursing home it would cost a grand a week plus.
The option they have picked isnt that bad compared to some of the others......

onwards&upwards

pickledonionspaceraider said:

I have to say, I don't really see what the benefits for your sibling are, in all of this. Other than being on hand, having life disrupted, and loss of privacy. 

A big extension for free?  

I wouldn't do it but there are people who would. 

onwards&upwards

ukjoel said:

 If they went in a nursing home it would cost a grand a week plus.
The option they have picked isnt that bad compared to some of the others......

They are 63 and 70, not particularly old.  Nobody can say what their care needs may be in 10, 15 or 20 years. 

BrassicWoman

gettingtheresometime said:

BrassicWoman said:

Sibling takes on majority care and has life disrupted. Has to be available, can't move house. loss of privacy, etc.
Sibling ends up with a bigger house
All seems fair, no need for any adjustments to inheritances. The loan seems daft, though. Give parents a liferent to protect their interests and be done with it.

Right up to the point sibling decides this isn't what they signed up for....then what happens?

That's why you have a life rent as protection.
Addressing this as an inheritance question feels like the wrong angle to me. There's sacrifices being made by many while they are still alive, and a lot of life to go yet.