Possible to change 50/50 beneficiary ?

Sucker_for_sweeties

My sibling and I are beneficiaries in my Dad's will. He leaves a house and a small bit of cash.
We are 50/50 in the will but as he is in tied work accommodation and doesn't own and I am mortgage free I would like to try and help him.
He is emotoally attached to the house as it was his family home for a number of years (whereas I had moved out before my parents moved there).
Can I forgoe some of my share to him? I would like to receive some money, to help my retirement but also want to try and help him with this.
Also is it possible to slow the process for a while to enable him to save up some money to lower the amount of mortgage he would need to be able to buy out my reduced share.
He can't afford to get a mortgage for the full 50%, due to his current age.

Alderbank

Yes, of course you can.

You can both draw up a deed of variation. That's a legal document that allows the beneficiaries of a deceased person's estate to change how the estate is distributed.

But you don't need to be as formal as that, you can simply write a letter as long as it meets certain conditions:

https://www.gov.uk/government/publications/inheritance-tax-instrument-of-variation-checklist-iov2

You don't say the value of your late father's estate, but the main thing to watch for is that you don't unwittingly increase the amount of inheritance tax you both might be liable for.

RAS

What exactly is "tied work accommodation"?

Most tied accommodation is rented at low or nil cost to someone working in a specific role and they lose the right to live there when they cease the job.

Or are you referring to an agricultural tie which restricts the residence to those working in or retired from agricultural work, which nay be owned? Even if you inherit, you'd only be allowed to live there if you met the specific criteria for that property. Councils enforce with varying degrees of fervour.

Or some other tie?

elsien

@RAS I think you have misunderstood. I read it that it is the brother who lives in tied accommodation. This is nothing to do with the property in dad’s will, outside of the fact that the brother will have a permanent home if he buys the OP out.

Sucker_for_sweeties

Thank you all

Alderbank- The estate value is around 250K, so no inheritance tax due.
I was worried about something I read in another thread where one beneficiary was allowed to buy the house below value, and it seemed that doing that meant there was a CGT amount due, so I thought we could hopefully change the % so the overall value was the same, just how much he had to pay would be less than 50%.
RAS - It's my brother that has a free rent house at the moment with his job, Dad's house is just a normal house.
Elsen, yes that's exactly what I'd like to happen, I'd like for him to have a permanent home.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82172967#Comment_82172967

Only the OP needs to make a deed of variation.

I would however worry about this being done just because the brother is emotionally attached to the family home as this rarely makes financial sense where the finances are stretched. Apart from the difficulty of obtaining a mortgage older properties can be very expensive to maintain and run.

In the OPs shoes I would suggest offering a DoV on the basis that the house is sold with the brother getting a larger share to purchase something modern, cheaper and energy efficient.

Does he have a family or is he single?

Sucker_for_sweeties

https://forums.moneysavingexpert.com/discussion/comment/82173063#Comment_82173063

I've been through all this with him, but he cannot see past living there. He wants to try it this way, and knows that if he is struggling then he can sell then and buy a smaller place.
The house is in great condition and not particularly old, it's more that he could only get a 12 year morgage so we want to make sure that is very affordable for him.

poseidon1

https://forums.moneysavingexpert.com/discussion/6687206/possible-to-change-50-50-beneficiary

I note you are in Scotland, so since you are looking to reduce the percentge you inherit from the Scottish estate in order to give your sibling a chance to obtain the family home you should perhaps get a solicitor to help you with the drafting and the eventual conveyancing practicalities including any LBTT liabilties - see article below on the key elements of a DOV

https://www.murraybeith.co.uk/insights/three-reasons-to-use-a-deed-of-variation/

Sucker_for_sweeties

Thank you poseidon1, I hadn't even considered LBTT liabilities, I think as we are discussing purchase @ 60K it might not be payable, though a form is still needed.

We will definately be doing this through a solicitor, probably the one Dad used for his will, and where the house deeds are currently sitting. Though I note he was expensive when Dad used to make a POA, as he was struggling with mobility and only did branch banking (sadly not executed before his death).

I see on the link you provided that it mentions there may be a CGT aspect to consider (but doesn't elaborate on what that might be). So we are forewarned and forearmed before thinking more along these lines do you have some idea of what that might be alluding to?

Albermarle

If your sibling is living in tied work accommodation, what are they are going to do with the house if they own it?

Leaving it empty, will mean problems with the mortgage and insurance. Plus empty houses tend to deteriorate.

Or will he rent it out, which brings its own issues?

Sucker_for_sweeties

Hi Abermarle, he works a 4 day week so will live in it 4 nights a week, his adult son is also likely to move in full-time with him.