Money Moral Dilemma: Should we ask our sister to pay rent for living in the family home?

MSE_Sarah

This week's MoneySaver who wants advice asks…

My father died recently, leaving half of the family home to me and my two sisters. My mum still lives there and owns the other 50% - she and my dad paid off the mortgage a few years ago. One of my sisters also lives there, rent-free. Should my other sister and I - who both have families and mortgages - ask her for rent now we own part of the property? We'd charge it in proportion to our share, so it'd be much less than if my sister moved out and lived by herself.

Unfortunately the MSE team can't answer Money Moral Dilemma questions as contributions are sent in or suggested in person. They are intended to be a point of debate and discussed at face value. Remember that behind each dilemma there is a real person so, as the forum rules say, please keep it kind and keep it clean.

🤝 If you haven’t already, join the forum to reply.
🤔 Got a Money Moral Dilemma of your own? Suggest an MMD.
👀 View past Money Moral Dilemmas.

El_Torro

Sounds like a fair deal to me. I can't speak on behalf of the sister who would be paying rent though.

Also the mum's opinion on the matter would be interesting to know.

Myci85

How old/independent is your mum? Does your sister take on more of a role in helping your mum out, doing things that if she wasn't living there, your mum might struggle to do on her own?

My younger brother still lives in the family home with my mum, not the same situation as me and my siblings don't own a share of the house, but whilst my mum is still fairly independent, I know that he does a lot for her in terms of maintenance and day to day running of the place, so if that is the case for OP, I don't think I'd be asking for rent.

elsien

And will you and your sister be taking it in terms to offer support and care for your mother in the equivalent amounts can also make that fair? Particularly during the evening and at weekends.

And out of that will you be paying your share of the insurance for the house, and maintenance that needs doing et cetera? Or are you still expecting your Mum to pay all of that?

Keep_pedalling

Hopefully the will gave the surviving spouse a life interest in the property, in which case a trust was created and she is currently the sole beneficial owner of the property and what she charges he daughter to stay there is entirely her business.

If the will was bodged and the 50% left directly to to the children then you should be more worried about the potential CGT and IHT implications.

twopenny

What Elsein said +1.

Shouldn't you be paying your share of the council tax if you own part of the house? Yes again to maintenance for the same reason. Insurance for sure.

If you split that evenly then it would be split 4 ways in which case your sister would be paying the same as you. That's fair

If she's doing shopping for your mum, cleaning shared, maybe taking your mum to appts then she should pay less

Woodstok2000

I'd second what @Keep_pedalling said - if this has been done right then there's no issue.

If not, and you want to charge her rent, you may find she wants you to do your fair share of care and support round the house...might be worth more than the money to keep things as they are, especially if there are changes in your mums needs in future.

kaMelo

If this is a genuine question (as opposed to a made up one by MSE staff) then I despair.

@elsien answered far more eloquently than I ever could, selfish money grabbing !!!!!! never comes across as eloquent.

Ed264

So all three of you own just under 17% each. You don't say what the house value is.

You're going to get varying opinions with this. Personally, if anyone should be charging you sister rent, it should be your mum. It's her decision, I'd say.

Gadgetvixen

did she pay rent to your parents before Dad died? If not then a sudden big expense may not be possible for her.

Also, as others have said, are you doing share in terms of looking after Mum or is the sister in residence an unpaid carer.

and do you really need the money? You were doing ok before losing Dad.

keithyno.1

Here's an idea - put it to a vote as to whether your sister who currently lives in the house should pay rent, similar to as if the four of you were shareholders in a company. Your mum has a 50% vote, each of you sisters has a 16.67% vote, which reflects the equity each of you hold in the property. The result of the vote would of course be binding. Call it family democracy in action!