Questions on will and inheritance please

bimma

Hi

Please advice if a will or other document is needed in this scenario

UK. England

My mother owns a house which I fully funded in 2015 . I gave her the money As a gift. 

She has no debts and only a small amount of savings 

House value currently approx 200k so whole estate is less than  350k allowance for inheritance tax 


We ..I.e my father and my 3 siblings have a agreement know and understand that the house will come to me on the event of her passing.

And there is no dispute as to how any savings will be split either. There is no one to challenge it too.

So;
Is a will needed in this situation given that intestacy rules mean it goes to my dad (they are married.)
And given their are no debts to pay will it be a legal requirement to apply for probate in this situation or can I simply write to the land registry to transfer house to me or will a solicitor needs to be involved

Its a very simple scenario of the house and 2 bank accounts with some small savings .


I spoke to a solicitor he said best way is to add myself on the deeds as 50.50 joint tenancy  however I think this would cause issues with the 7 year rule .I.e if she passes within 7yrs off this? Or something 

Whats the least complex way to ensure the house comes to me after.


Thanks in advance

Brie

Do you have proof of giving her the money?  Would she be willing/able/assuming it's legal to say it was an interest free loan?

Keep_pedalling

A will is essential even if everybody is in agreement. If any of people who would inherit under intestate rules should happen to lose their mental capacity there is nothing you can do to get get to pass up their inheritance in favour of you.

You should also be aware that there is a chance may no longer own the house at her death and the proceeds may have gone in care costs.

doodling

Hi,

bimma said:

Hi

Please advice if a will or other document is needed in this scenario

UK. England

My mother owns a house which I fully funded in 2015 . I gave her the money As a gift. 

She has no debts and only a small amount of savings 

House value currently approx 200k so whole estate is less than  350k allowance for inheritance tax 


We ..I.e my father and my 3 siblings have a agreement know and understand that the house will come to me on the event of her passing.

And there is no dispute as to how any savings will be split either. There is no one to challenge it too.

So;
Is a will needed in this situation given that intestacy rules mean it goes to my dad (they are married.)
And given their are no debts to pay will it be a legal requirement to apply for probate in this situation or can I simply write to the land registry to transfer house to me or will a solicitor needs to be involved

Its a very simple scenario of the house and 2 bank accounts with some small savings .


I spoke to a solicitor he said best way is to add myself on the deeds as 50.50 joint tenancy  however I think this would cause issues with the 7 year rule .I.e if she passes within 7yrs off this? Or something 

Whats the least complex way to ensure the house comes to me after.


Thanks in advance

How is the agreement with your father and siblings documented?  Is it legally enforceable (I suspect not)?  If it isn't then they are free to change their mind at any point - people can make unexpected decisions when they get to choose whether to keep large sums of money.

Is your mother married to your father?  Do they live together?  Is the house owned solely by your mother or is it owned jointly with your father?

In the absence of a will and assuming that the house is owned only by your mother then:

• If they are married, the house will go to your father, whether he chooses to give it to you is his decision.
• If they are not married then the house will go to you and your siblings, whether your siblings want to give you their share is their decision.

If you want to make sure it comes to you then your mother needs to make a will bequeathing it to you.

If your mother and father are married and live together in their only house and your father doesn't end up with a right to live there after your mum has died then he could potentially challenge the outcome (as your mother would be expected to provide for her husband in her will) - if this is the case then the normal approach is to give the spouse the right to live in the house until they die too.

People can give clearer advice once the questions in my second paragraph have been answered but the summary is that if your mum wants you to have the house she needs to see a solicitor and make a will.  This is definitely not a situation for doing a DIY will or doing one online - she needs to see a real solicitor.

The solution you have been given by a solicitor might work but it involves your mum giving away half her house - that might be an issue depending on her age and whether or not there is any foreseeable need for care (deprivation of assets).  It also creates some potential taxation problems when she dies - IHT (i.e. the 7 year rule) is not a problem, as you say she is below the threshold but you might end up paying Capital Gains Tax on any increase in value of your share at some point.

bimma

Hi
Thanks for.prompt replies

There is no chance of her going into care home so that's not an issue 

The agreement its mine is only verbal nothing on paper

Yes my mother and father are married and basically our family own 2 properties on the same st which we use . one registered to my dad and one to my mum which I paid for  we are a large family so use both homes.

So in summary from.your advice its best to get a will made up by solicitor clearly.specfying this.

So when a will is made...is it necessary to apply.for probate or is it a simple case of writing to land registry end getting it transferred to me

Also you mention my father could if of sound mind transfer it to me if it went to him is that straight forward and will there be tax Implications for that I.e does the inheritance tax threshold change something I read about 1 persons allowance being transferred to the other?

Again risky etc and people change etc which I understand.  

Again thank you 

Gavin83

bimma said:

There is no chance of her going into care home so that's not an issue 

Why not? Would you give up your job/life and become her 24/7 carer should she require it? That's pretty much the only way you can guarantee it. After all, peoples health can change in the blink of an eye.

bimma

Gavin yes after all our parents cared for us fed us and changed our dirty nappies so its only humane that when they are old frail and unable to fend for themselves just as us then we do the same for them 

Spendless

Why on earth would you give £1000s to your Mum to buy a house some years ago and not protect yourself in some way or at least get legal advice at the time?? The mind boggles.

Keep_pedalling

bimma said:

Hi
Thanks for.prompt replies

There is no chance of her going into care home so that's not an issue 

The agreement its mine is only verbal nothing on paper

Yes my mother and father are married and basically our family own 2 properties on the same st which we use . one registered to my dad and one to my mum which I paid for  we are a large family so use both homes.

So in summary from.your advice its best to get a will made up by solicitor clearly.specfying this.

So when a will is made...is it necessary to apply.for probate or is it a simple case of writing to land registry end getting it transferred to me

Also you mention my father could if of sound mind transfer it to me if it went to him is that straight forward and will there be tax Implications for that I.e does the inheritance tax threshold change something I read about 1 persons allowance being transferred to the other?

Again risky etc and people change etc which I understand.  

Again thank you 

Probate will be applied for only on the testators death. With that complex set up your mother and father both need to make wills as a matter of urgency.

p00hsticks

Keep_pedalling said:

A will is essential even if everybody is in agreement. If any of people who would inherit under intestate rules should happen to lose their mental capacity there is nothing you can do to get get to pass up their inheritance in favour of you.

To add to this, with no will in place, if any of the other siblings are on means tested benefits, or are getting divorced or owe debts, they may find themselves in a position where they are unable to freely hand over an inheritance that the intestacy laws say that they are entitled to just because there was some form of verbal agreement. Other parties may feel that legally they have a better claim to the money....

Mojisola

bimma said:

Gavin yes after all our parents cared for us fed us and changed our dirty nappies so its only humane that when they are old frail and unable to fend for themselves just as us then we do the same for them 

It might be that your parents don't actually want you doing those tasks for them and would prefer a professionally trained person looking after them.