Equity in Property Distribution and Inheritance: balancing fairness between siblings for future care

TakeWhatYouLikeAndLeaveTheRest

My elderly mother recently downsized from our family home (a house), with half of the sale proceeds gifted to my sibling for purchasing a house and the remaining portion used to acquire a more manageable flat for herself. She is very happy in her new place, and while that is of paramount important to me, and I am grateful for the planned inheritance of the flat, I have concerns about the fairness of this arrangement.

The area where my sibling's property is located is more sought after, and the value of their property has already appreciated. 

On the other hand, the flat my mother purchased is my designated inheritance. 

Both my sibling and I are single parents with three children between us requiring our support and financial assistance. We have very limited savings between us, and the flat represents a significant portion of our mother's assets, valued at approximately £130k. 

So, in the event that our mother requires care home assistance in the future, if I am unable to meet her care needs (which I would hope to do, but must be realistic and acknowledge that I can't promise certainty until - or unless - difficulties arise), the flat would likely need to be sold to cover any associated costs, leaving me with diminished inheritance prospects... or none at all.

I worry about the implications of this arrangement on our collective future financial security, particularly regarding potential care home fees. My sibling and I are both homeowners now, although I own only 60% of the property my children and I live in.

Given these circumstances, I am seeking fellow Forum members’ insights on the fairness of this distribution and any potential financial implications, particularly regarding future care home fees and inheritances. 

Your ideas on how best to navigate this situation and ensure fairness for all parties involved would be greatly appreciated. I think our mum is amending her Will at present, or has possibly already done so, putting her new flat down against my name.

Thank you in advance for your time and expertise reading/responding to my post (my first ever!).

Sea_Shell

It is quite likely to end up being unfair, in the long run. ☹️

The "fair" thing to have done was to gift you 50/50 of the released cash, and then leave her estate 50/50 to you both.

As for a new will, best not to mention the property by specific address, in case it does have to be sold at some stage.

Yes, any care costs will come out of "your" inheritance, whilst your sibling has had theirs.

Deprivation of assets may come into place if her money runs out.

pramsay13

It sounds as though it's a done deal so not sure what difference your opinion or that of others will make. 
It is certainly possible that your inheritance will diminish or disappear but the time to debate that or suggest alternatives would have been before your sibling got their gift and used it to buy a house. 

LightFlare

16 pages of a similar situation although your “half” is slightly different:

https://forums.moneysavingexpert.com/discussion/6510906/money-moral-dilemma-my-son-wants-me-to-give-him-40-000-even-though-he-doesnt-need-it-should-i#latest

sheramber

While the result is not equal there is no law that says it has to be. 

Your mother can do whatever she wants with her assets. 

If your sister already has the money and has bought a house there is not much can be done to change that now. 

OldMusicGuy

Your mother probably thought she was being "fair" but like many people has not thought through the long term implications of how she will have to fund care in later life. We have just been through this with my FiL. He had to go into care and sell his flat. His existing will was poorly thought out and meant his children may have ended up with very little. We explained the situation to him and he sat down with a solicitor and drafted a new will which reflected how he wanted his estate distributed given how circumstances had changed. Thank goodness he did that before he died.

Sadly it appears your mother did not think through the implications of what she was doing and it's too late to alter it. Whether it's fair or not is another question. You can get cut up about it and cause family strife but that's not going to alter the situation. As you say, she may not need care. 

Keep_pedalling

Has you mother made a new will since she made the gift to your sibling? There is nothing that can be done about the risk of your potential inheritance being eaten up with care costs, but bearing in mind most people don’t end up in residential care, then it is important that your mother has a properly drafted will in place. If she has not done this then she should make an appointment with a local solicitor ASAS.