Transferring home ownership

greatcrested

NoraPatterson82 said:

wilfred30 said:

NoraPatterson82 said:

wilfred30 said:

getmore4less said:

Simple gift will work.

Potential for deprivation of assets if her money runs out and needs benefits top up, plan to fund that at the time

if her estate is substantial probably worth checking the IHT implications especially if estate needs the RNRB

any other siblings that may get the hump if OH gets the house and they get nothing

You haven't answered this question, which is quite important.

If the answer to that is no, why does she need to transfer it to you and your husband at all?  Why can't you just move into her house now and either sell or rent yours.  Afterall, he will inherit it anyway so I don't see the point in all the faff of transferring it now.  

And ah no other siblings to get the hump. One brother who does not want the house, as likes where he is living currently and owns his own home. He’s single and comfortable and has no one to pass it down to anyway. I believe he is expecting any other remaining inheritance that may befall one day and that’s fine with us maybe such things should be agreed more formally to avoid upset due to any unforeseen changes of heart down the line though good point!

Huh?  That's a total contradiction.  

It would've been helpful if you'd mentioned your husband's brother earlier rather than drip feed information because someone had to ask the question.

Very unhelpful comment! It didn’t seem relevant til someone asked the question!! I’m asking in a forum for some general info after an unexpected opportunity to live somewhere nicer has arisen, not a court of law! - the brother has stated he isn’t interested in the house, we see him daily and have a good relationship. If it felt relevant I’d have brought it up. When someone mentioned any siblings i accepted perhaps it could be good to arrange something more formal as have heard of people falling out over money. How is that a contradiction in terms!? And as for it just moving into her house I feels vulnerable and a little uncertain to do so - I’m here for advice as someone who knows nothing not to be judged thanks 

No need to get defensive...

You've received good advice on the practicalities and legalities. The sibling question is related. Agreed it's not directly what you asked about, but a) this is a public forum and you get all sorts of responses. Ignore the ones that you feel are irrelevant.

But b) regular posters here regularly see situations where issues exactly like yours have arisen because they weren't fully foreseen or considered. The relationeship issues are worth fully considering as well as the legal ones, and that's what is being pointed out.

Naturally, you know the people involved far better than we do, and understand the relationships, and relative expectaions of everyone, but suggesting you look closely at these is just as helpful in a different way as telling you whether you need a solicitor.

xylophone

Your mother should see a solicitor and discuss what she wants to do, especially as she has been diagnosed with early stage dementia.

She should also discuss her will.

Bear in mind that fees go up annually by more than the rate of inflation.

Mickey666

What I’d do:
1. Discuss the situation with brother (sounds like this has already been done) to ensure he’s happy with the proposed arrangement and understands he might lose out in the will if MiL lives a long time.
2. Sounds like the care costs are more than covered, so I wouldn’t be worrying about DOA.
3. Move into the MiL house but not transfer ownership
4. Sell own house and invest the equity somewhere (whole different discussion).

When MiL dies, divide remaining estate and hopefully there is enough remaining that the house need not be sold so the OP can inherit it outright. 

OP will still have their old house equity savings to ‘buy out’ brother if estate needs to sell house for equal distribution - or maybe brother really will be ok with an uneven distribution, in which case a DOV will suffice.
If brother DOES insist on equal distribution and the house has to be sold then worst case the OP still gets half the estate and still has their old house equity savings to go towards a new house.

Alternatively, get MiL to explicitly leave house to OP.  But this MUST be done via a solicitor to ensure there is no future issue with her capacity to change her will.  Might be an idea to get the brother to agree to the change as well, I’m writing, perhaps witnessed by the solicitor.  Might not stop a future dispute but would at least give the OP the moral high-ground.

Always assuming there are no other skeletons in cupboards we don’t know about  

Scotbot

Whilst your brother may be happy for you to live in the house whilst  your mum is alive it would be very generous of him to let you inherit the entire house whilst he just gets half of what is left over. Which may be virtually nothing.  Would you be happy with this, it is not very fair?
It sounds like you haven't given it much thought and are unfamiliar with the various tax and inheritance laws. That is not a criticism there is no reason why you should be but it is complex so  I think you should both see a solicitor and discuss the options together. You then of course need to talk to your mother.

getmore4less

The problem with just moving in and selling your place is you have no security.

By not formally doing the transfer you just kick the problem down the road. 

Unless the house is worth over £400k possibly a lot more if there is transferable nil rate bands available IHT won't be an issue for the MIL estate..