Equity Release. Do I cash in? Inheritance ?

Steveod

My mum remarried approximately 20 years ago. At some stage she added her husbands name to the mortgage which has now been paid off. She has now been diagnosed with dementia  and was diagnosed in possibly 2018.

In 2017 they took out (her husbands idea) equity release on the property and never told me. My mum has no idea what equity release is and her husband has so far taken two separate payments. I have no idea what he has spent the money on, as there have been no house improvements, no holidays, cars or furniture etc. This only came to light two months ago when my father passed away and the subject came up. He has told me there is approximately £35k left that he can use and has offered to give this to me. The house has been valued at £180 but so far I have worked out that he owes approximately £47 to the equity firm.

The chances are that there is going to be very little left by the time they both pass away, so should I accept the £35k or wait and see what happens?

Linton

I am very confused....

To get the facts clear, please confirm
1) Your mother and her husband took out an ER mortgage
1) Your father has died and your mother has dementia.  It is not clear what your father has to do with the question.
2) Your mother's husband told you that he could give you £35K, I am not sure why.
3) Currently the house is valued at £180K and there is a £47K ER mortgage so £133K of value left in the house.
4) The house is owned by your mother and her husband.
5) You are concerned about what happens when your mother and her husband both die.
6) I assume your mother is in care and her husband lives in the house.

Assuming the house is jointly owned (which it probably is if they have an ER  mortgage)  what happens to the house will be determined by the survivor's will after the ER loan has been paid off.  I am unclear why you think there will be very little left. 

You are asking whether you should accept the offer of the £35K gift or wait and see what happens.  What do you think could happen and what bearing has it on the £35K gift?

One thing to bear in mind is that if your mother's husband needs care in the future and council funding is required the £35K gift could be called into question and the house may have to be sold to pay care costs.