Change of Will...

Brie

consider what will happen if you mother needs to go into care or have care support within the home while you are living there.  It is possible that a lien can be put on the house or you be made to sell and move out if she has insufficient funds to support herself in care.  

we live with my MiL who has contributed to the purchase of our house.  because I was over 60 when she had to go into care we were told that we would not be force to sell but a lien could be put on the house to recover costs when we did sell - even if it was years after her death.  

this doesn't need to be a problem but just something that you need to be aware of - particularly if you are under 60 in which case you may not have a right to remain in "her" house.  Potentially there may be  a way around this if you are paying rent so the house is generating an income to pay for her care.

Keep_pedalling

gettingtheresometime said:

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.

It’s complicated, assuming the will that set up the trust had no survivorship clause then your husband can leave his interest in the house in his will but it does not form part of his estate for IHT, as for that purpose it is treated as part of the life tenant’s estate.

New_World_Man

If you decide to downsize (presumably at your discretion) who pays all the costs/fees for this? Is the executry expected to cover this? Would this be covered in the terms of the will? Typically matters of fees, costs, maintenance etc. are overlooked until such time as a large bill appears on the horizon. The testator cannot take it for granted that all parties will just reach an amicable agreement at the appropriate time.

Soundgirlrocks

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.

Sorry that's not correct, the house would be held in trust and as such the sisters would not own a share, they would be beneficiaries once the trust was wound up. In the mean timeit has no impact on their entitlements.

Robert_McGeddon

Brie said:

we live with my MiL who has contributed to the purchase of our house.  because I was over 60 when she had to go into care we were told that we would not be force to sell but a lien could be put on the house to recover costs when we did sell - even if it was years after her death.  

Who owns the house?

There may be a mandatory disregard applicable - see s5.1 of this AgeUK paper.

AIUI a disregard means a lien on the property shouldn't happen at all.