Change of Will...

Orville

My mother has told me that she intends to change her will so I have a right to live in the family house until I pass when she dies. It is just her and myself living there. The are two sisters of mine who do not.

She intends to keep the will much the same in that all three of us would inherit an equal share of the house. If either of my sisters pass before I do their share would be left to any children the sister has.

With regards to me. 

Can the solicitor word the will so that I keep my right to live in the house even if I at some point decide I want to move. IE if I sold the current house and used the proceeds to purchase another, can I then have a right to live in that?.

How would that work and what would happen with any remaining funds from the sale if there were any?.

Many thanks.

Keep_pedalling

Yes that is possible, the solicitor who draws up her will will advise on the best way to do this. What happens to any cash resulting from you downsizing will depend on whether the will states it is to be distributed to the beneficiary or stays within the life interest trust (the former would seem the fairest option)

I hope your mother is going to inform your sisters what she plans to do, as it could be a bit of a shock for them only to find out on her death and it could lead a serious family falling out.

p00hsticks

To avoid confusion / bad feelings, I'd suggest that the will also ought to cover things like wherr the money to pay for the maintenance of the house while you are living in it comes from, who decides what maintenance is necessary etc...

Orville

Thank you for your comments.....

She has told one of the sisters not to force a sale of the house in a previous conversation that I was not privvy to. She is fine with that as my parents lent her partner money to go into business and that business now has a very healthy turnover. However when she told me I said the best thing to do would be to put it in writing as the other sister only sees pound signs, she had just under 1k off my mother the week my father passed. 

So she said she was going to change her will rather then just a letter saying so etc. She has said not to tell the other sister as telling her would cause hassle. I can deal with her when the time comes but my mother for now at least just wants a peaceful life.

A very good point with regards to the upkeep. My feeling is that as I am living in it, I will be responsible for the upkeep. I think that is only fair.

Sea_Shell

Will you also have to pay any "rent" to your sisters, in respect of their share, as in all respects they are being almost "disinherited" as they won't be able to enjoy any benefit from the property until you pass.   That could (hopefully for you) be many many years.   They may never get the benefit of their inheritance.

Marcon

Orville said:

My mother has told me that she intends to change her will so I have a right to live in the family house until I pass when she dies. It is just her and myself living there. The are two sisters of mine who do not.

She intends to keep the will much the same in that all three of us would inherit an equal share of the house. If either of my sisters pass before I do their share would be left to any children the sister has.

With regards to me. 

Can the solicitor word the will so that I keep my right to live in the house even if I at some point decide I want to move. IE if I sold the current house and used the proceeds to purchase another, can I then have a right to live in that?.

How would that work and what would happen with any remaining funds from the sale if there were any?.

Many thanks.

Are your sisters already house owners? If not, owning a third share of a house they may never inherit would prevent them from accessing various 'first time buyer' or other help to buy initiatives. Hopefully that situation won't arise for very many years (if at all), but these life interest trusts can cause any number of unforeseen issues once someone has died.

Keep_pedalling

Orville said:

Thank you for your comments.....

She has told one of the sisters not to force a sale of the house in a previous conversation that I was not privvy to. She is fine with that as my parents lent her partner money to go into business and that business now has a very healthy turnover. However when she told me I said the best thing to do would be to put it in writing as the other sister only sees pound signs, she had just under 1k off my mother the week my father passed. 

So she said she was going to change her will rather then just a letter saying so etc. She has said not to tell the other sister as telling her would cause hassle. I can deal with her when the time comes but my mother for now at least just wants a peaceful life.

A very good point with regards to the upkeep. My feeling is that as I am living in it, I will be responsible for the upkeep. I think that is only fair.

You don’t pay rent on something you have been given a life interest in.

Mojisola

Marcon said:

Are your sisters already house owners? If not, owning a third share of a house they may never inherit would prevent them from accessing various 'first time buyer' or other help to buy initiatives. Hopefully that situation won't arise for very many years (if at all), but these life interest trusts can cause any number of unforeseen issues once someone has died.

AIUI, they aren't considered owners while the life trust is in force. 

Mojisola

Orville said:

She has told one of the sisters not to force a sale of the house in a previous conversation that I was not privy to. She is fine with that as my parents lent her partner money to go into business and that business now has a very healthy turnover. However when she told me I said the best thing to do would be to put it in writing as the other sister only sees pound signs, she had just under 1k off my mother the week my father passed. 

So she said she was going to change her will rather then just a letter saying so etc.

Just as well - if she left the will as it is and just wrote a letter, it would have no legal standing.  The executor would have to follow what the will said. 

gettingtheresometime

Mojisola said:

Marcon said:

Are your sisters already house owners? If not, owning a third share of a house they may never inherit would prevent them from accessing various 'first time buyer' or other help to buy initiatives. Hopefully that situation won't arise for very many years (if at all), but these life interest trusts can cause any number of unforeseen issues once someone has died.

AIUI, they aren't considered owners while the life trust is in force. 

That’s interesting as I’ve been told that my husband’s share in his former family home forms part of his estate even though, at the present time, the life trust is still in force and potentially I’ll never see a penny of it.

Ms_Chocaholic

How much (ish) is the family home worth now? If you are thinking of selling at some point anyway, presumably to downsize, would one third of the sale proceeds buy you a home? As you are already thinking of moving and you could purchase a home with your one third share it seems unfair.