50/50 with clause Will Advise

Sarahspangles

If the OP inherits half a house won’t he/she be liable for CGT if a couple of years down the line the house is sold and has increased in value?

And, is their first time buyer status affected?

Mintyrose

Sarahspangles said:

If the OP inherits half a house won’t he/she be liable for CGT if a couple of years down the line the house is sold and has increased in value?

And, is their first time buyer status affected?

I hadn’t even thought of these points! 🤷‍♀️ thank you 

Mintyrose

RAS said:

Agreed with K-p, usually, I'd suggest getting the solicitor to renounce, but if the house is still owned use them to ensure bro keeps to the timetable.

Maybe start by getting all the bills transferred to bro's name, and suggest all three meet a few months down the line to agree a timetable for disposal.

I think he has to cover all bills, maintenance during those 2 years, as I have my own home to run and he hasn’t had those financial commitments during the 10+years he has been there, 

Sea_Shell

What independent income does your brother have to be able to run a house in the future?

RAS

Make sure the house is sold by the estate. If you use a solicitor, it's easy enough for them to take a year to get probate, just make sure the estimated value is towards the upper end of the scale, unless that takes you into IHT territory.

And it could easily take a year probate to sell the house unless the brother can find somewhere to buy for half the value and wants to move quickly.

Sarahspangles

Sorry to keep asking questions - why isn’t brother paying rent now, and shouldn’t he in future if he’s using half your house.  Charging rent is a useful parental tactic to motivate children to fly the nest.

Mintyrose

Sarahspangles said:

Sorry to keep asking questions - why isn’t brother paying rent now, and shouldn’t he in future if he’s using half your house.  Charging rent is a useful parental tactic to motivate children to fly the nest.

Your guess is as good as mine on why he isn’t already paying, he’s self-employed (occasionally) and thrives and lives off his problems, so dad picks up all the bills 😬 I’m not sure how it would work if I charged him rent as I’m in social housing? All good questions 😀 keep asking as it makes me think too 

Mintyrose

Sea_Shell said:

What independent income does your brother have to be able to run a house in the future?

I really don’t know his set up, he’s self employed occasionally, this is why I’m so worried 🤷‍♀️plus if his business is registered at the address does that make things even harder for me? 

Mintyrose

RAS said:

Make sure the house is sold by the estate. If you use a solicitor, it's easy enough for them to take a year to get probate, just make sure the estimated value is towards the upper end of the scale, unless that takes you into IHT territory.

And it could easily take a year probate to sell the house unless the brother can find somewhere to buy for half the value and wants to move quickly.

I honestly think he will keep me waiting until the last minute of the 2 years before he decides what to do 🤷‍♀️ I think dad will leave enough for all bills to be paid for that amount of time 😬

Mojisola

Mintyrose said:

Your guess is as good as mine on why he isn’t already paying, he’s self-employed (occasionally) and thrives and lives off his problems, so dad picks up all the bills

As your brother is being financially maintained by your father, he has a valid reason to challenge the 50/50 split in the will and argue that he should be get a bigger percentage.