Family Property

Enufsed

Hi, 

We are both in our 70s and in order to protect, at least, some of our home we've become Tenants in Common.

We have mirror wills and when one of us dies our share of the property will go into a trust. On the 2nd death the property will pass to our youngest son. He still lives at home and helps us both as we have chronic illnesses and disabilities. My other son is married and has one mortaged property and a buy to let property. 

I've written a letter to them both to be read if I die first. I've explained the reasons why this decision has been made. 

My question is should I tell them now? My youngest son is 46 and is single and pays a nominal rent for 2 rooms. He's a valuable help to us both. 

Thanks 

flaneurs_lobster

Please take your real name off your post else everyone, not least your sons, will know your intentions.

SVaz

What happens if the surviving spouse needs a care home?     The LA may well claim deprivation of assets,  given your age and health status when you did this.

Keep_pedalling

SVaz said:

What happens if the surviving spouse needs a care home?     The LA may well claim deprivation of assets,  given your age and health status when you did this.

Leaving your share of your home to a someone with a life interest to the surviving spouse is not deprivation of assets.

Enufsed

Changing from joint tenants to tenants in common was done a few years ago as a safeguard. I have chronic conditions and my husband has a degenerative disorder, but I'm hoping it'll be a few years before considering care and care homes.

I just wanted to know if it was considered OK to let my sons know the arrangements?

I'm aware circumstances change and it could be there's nothing left as I've spent it all!

Thanks 

Keep_pedalling

As your son lives with you there are a couple of other approaches you can take. 

1. You could leave your shares directly to him avoiding the need for a trust. The main benefit for him of the trust would be to avoid CGT but as this is his home he would be exempt from that.

2. Change ownership to Joint Tenants with him as a third owner. Ownership would then pass by survivorship rather than through a will. The advantage of this solution is that his sibling would not be able to challenge it as the house would no longer form part of the heritable estate. 

Albermarle

I just wanted to know if it was considered OK to let my sons know the arrangements?

Without knowing the personalities of everybody involved and the family dynamic, I do not think some strangers on the internet can really help you with this decision.

By the way where did the idea of changing to Tenants in Common and using a trust come from?

xylophone

By the way where did the idea of changing to Tenants in Common and using a trust come from?

Has been discussed before on the forum.

https://www.marlowwills.co.uk/life-interest-in-possession-trusts/

Enufsed

Thank you for your responses. The decision to become owners in common was to try and safeguard as much value in our home as possible. If one of us goes into care only their half of the property can be used.

I'm beginning to see there's no right or wrong answer to my question. My own family circumstances meant I've never inherited anything so didn't know if people's wishes in a will are made known to beneficiaries.

Thanks again. 

SVaz

Wills are public property after probate and are available to anyone who wants a look.

RobfromCornwall

My view is that it is best to be open, honest and frank about these sorts of things.

That's an opinion though, rather than the 'right' thing to do.  There is no right answer.