Inheritance

james.wardle

I Was in a  very similar position recently, though with possibly a more dysfunctional sibling.   I have split the house 50/50 with my sibling who lives in the house. We have a contract a bit like a rental contract where they rent the other half of the house from me for £1 a month.  50% of the money from the estate we have put in a joint account for bills, and take a fairly major role in settling bills from this account, I dont use this account for myself.      I appreciate I could have been much better off insisting the house was sold, and that this is an imperfect arrangement, but selling up was never really the plan.  This way I make sure bills are paid, and I'm not legally liable for any running costs just  1/2 building repairs.   In time if they pass away or want to move on we will split the proceeds from the house sale 50/50

TBagpuss

DairyQueen said:

I would strongly advise against entering any long-term financial arrangement that involves gifting/loaning to your sister unless you are so comfortable financially that it will make no difference to your financial wellbeing now or in the future. Experience suggests that such an arrangement will adversely impact your relationship. Resentment can creep in (in both directions), as can opportunities for misunderstandings/strife. 

Taking on the responsibility of financially supporting a fit and adult sibling (at your own detriment) is a step too far IMO. We should all help family in times of need but she is expecting too much.

I agree. The problem with this is that it only kicks the problem further down the road. Sooner or later, if OP wants to have their share if the inheritance, they are going to be in a position where they are potentially forcing a sale.  Added to which they may also face accusations of profiting off heir sibling if they also receive interest or an uplift.

I think that a short delay to allow sister to explore options for borrowing funds, and a compassionate approach that acknowledged that it would be nice for sister to be able to stay but is firm that it is sadly not possible unless she can raise additional funds, is the way to go.

If you did let her stay but with a chargeback, you would potentially have CGT further down the line, which is another downside. 

I'd only enter into an arrangement like this if you would be happy if you never get your share of the house.

If it were not for the the fact that your sister will be able to rehouse  mortgage free with her share of the inheritance might take a different view but as it is, she is effectively asking you to subsidies her lifestyle, in a way that leaves her over-housed and still at risk of not being able to meet her remaining outgoings, which seems like a bad outcome for her as well as for you.