Helping my brother with equity release

gaznoid

Hi all,

I'm new to the forums.  I have an odd situation that I need help with.  There are financial elements to the problem amongst other issues which may become apparent.

I am 60 yrs old.  My brother is 64 yrs old.  Our parents died some 15 yrs ago.  We were left a house and a reasonable inheritance each, split 75:25 to my brother.  He spent his entire life being looked after by my parents when they were alive and has never worked a day in his life.  He has never been diagnosed mentally and refuses to engage with anyone to find out.  Without going into painful detail, he has and always will refuse any help toward his mental health, period!  When our parents died, I got him a nice 2 bedroom flat to live in.  It was bought outright with his inheritance.  He has lived frugally on the inheritance ever since and remains single with no dependants.  This inheritance is nearly spent and I can find no way to convince him to ask for government financial help or mental assessment for his needs. I can't afford to support him and I can't find anyone to help with the situation either.  I see the only solution to his dilemma to be equity release for his property.  As he has never worked and eligible for new state pension, he will receive no income in retirement either!

I am open to advise on equity release of any other part of this ongoing situation.

Thanks

quotememiserable

You're not your brother's keeper. Why can't you just leave him to sort it out himself?

flaneurs_lobster

What happened to your parent's house? Sold and proceeds divided 75:25?

Keep_pedalling

Even though he has never paid any NI contributions he will be entitled to pension credit once he reaches SP age but he will need to apply for it. Equity release maybe very suitable for him but again he has to apply for it unless he gives you POA to act for him. 

Whatever you do don’t start paying for his day to day living.

born_again

How much would ER be & how long do you think that would last before you are back to square one again & no way out?

itsthelittlethings

I think it’s time for some tough love. Can he not claim universal credit? 

I wouldn’t suggest equity release to him if he has not already thought of it. What does your brother think will happen when the money runs out?

Is the issue mental health or is it possibly something else like autism? You could get support yourself as a carer. I don’t think your brother needs a diagnosis for this to happen. This might help you find a way forwards.

elsien

It is going to be far easier for him to look at any benefits he might be entitled to than going through the whole equity release thing. 

Why complicate things unnecessarily?

gaznoid

Wow, so many replies already!

I didn't say it in my introduction, but the second option is to see what happens when he runs out of money. I guess I feel a sense of responsibility. My father asked if I would look after him when he was gone and I said no. That's why the house was split 75:25 to help him out. When he moved I had POA an

gaznoid

And set him up so all the bills are paid monthly. Everyone I talk to about it says tough love is the way to go but I'd like some advice on ER too.

whizzywoo

All equity release type mortgages have to go through a financial advisor who is qualified to give the advice.
They will want to see your brother and there are absolutely loads of questions to be gone through.  It will be a lot more intrusive than applying for Pension Credit.

Pension Credit can be applied for online about 3 months before he reaches State Pension age. I assume he will be either 66 or 67 years old before he reaches State Pension age.

He will have to give details of any income he receives but from what you say that is none.  He will have to give his National Insurance number, I assume he does have one?  Also the amount of capital he has including Premium Bonds etc.  The value of the home he lives in does not count towards capital.  As long as his capital is below £10,000 he will get Guarantee Pension Credit equal to the New State Pension, currently £230.25 per week.  Also he will not have to pay any Council Tax.

If his capital is over £10,000 then the Pension Credit is reduced by £1 for every £500 over the threshold.  They may or they may not want to see proof of his capital such as bank statements.  It's highly unlikely that they would want to see him.  

You have already gone a long way towards looking after your brother even though you said "no" to your father.  Yes tough love is needed but also you need to be able to square things with your own conscience as well.  Do you still have POA for him?  If so then I believe you can complete the Pension Credit application on his behalf. 

elsien

I would hope that any ethical equity released company would be considering whether it’s in his best interests to go down that route when other options are available to him.

Out of interest, what does he think he is going to live on when his inheritance runs out? Have you said to him very clearly indeed, that you won’t be here funding him?
Is he willing to give you a reason why he doesn’t want to  claim any financial support? 

Because if it’s to do with form filling et cetera and as above as his power-of-attorney you can do that for him with his consent. Should you choose to do so obviously because you are not obligated.