Advice needed asap on sudden death

candice56

Hi,

Im hoping I can make use of some of the knowledge and experience out there but I may be a bit longwinded so please if you can bear with me.

Last week my mothers partner passed away suddenly and amidst all of our grief we arranged the funeral and started sorting through paperwork.

Heres where it gets complicated. My mother and her sadly missed partner were not married, they lived in their house for the last 8 years together as husband and wife but were not planning to get married until his redundancy had passed.

There is no will. But he had verbally discussed his wishes.

He has one biological son and 2 properties and this son currently lives in one of the properties that was left to his dad by his sons mother 5 years ago (they were never married but jointly owned the house). The son has always just lived there and everyone was happy enough for that to be the case and now there is only £59.00 left on the mortgage for that house so his dad really owned it outright.

The house he and my mother shared was in his sole name following his mothers passing 3 years ago and has a £12000 mortgage on it.

He has credit card bills, and a loan (but this does have pp) and the funeral will be roughly £2000. There is no money in savings or shares etc and no life insurance.

He worked full time and paid for all bills, my mother worked part-time and paid for all luxuries.

So heres my dilemma, the son now gets everything and the right to deal with the estate.

So far the son is being amicable and agrees my mother should stay in the house but is hinting at a clause to say it cant ever be sold. The son is an alcoholic and I have asked his permission to apply for a grant for letters of administrion to which he agrees. My mother does not want to be indebted to him at all in case he changes his mind later.

CAN I:

Transfer the house my mother lives in into her name completely? can I transfer the mortgage, If not if my brother and I pay the mortgage off we dont want the son to benefit from another £12000 so we need it to be hers solely with no comeback.

Will she have to pay capital gains tax?

Just to confuse things further my family overlaps somewhat. The son is my mothers nephew. His mother was my mothers sister and once had a short relationship with his dad but after 20 years got together with my mother. Everyone got on and accepted this just fine after a short period of adjustment. But as you can imagine we dont want to cause any trouble at all but do want to carry out the original wishes.

These were the wishes: property 1 goes to the son and his half brother but this would really have only happened if he ever moved out (not likely since rent free)

property 2 goes to the son, his half brother (as good as his son but not legally or biologically), my brother and myself (also his goddaughter). NB neither myself nor my brother ever wanted or expected a share of this house. He never mentioned about it going to my mother because they were going to get married so that was an automatic then whoever was left would leave it to all four.

I can say alot more but my head is spinning and any input would be gratefully received.

I'mcomingbackasaman

I'd go to a solicitor who deals with this kind of thing and ask for some advice. Sorry to hear your sad news it must be a nightmare for your mum. But she should have some rights as the deceaseds partner I think legislation was brought in recently but as I say a solicitor would know the ins and outs. You can have an hours free advice. Tell your mother to take a copy of the death certificate and mortgage details with her to show the solicitor.

msmicawber

I'm very sorry to hear about your mum's situation and agree with I'mcomingbackasaman that your mum definitely should see a solicitor as she's in a precarious position and alcoholic's are notoriously 'tricky' to deal with. It's early days and everyone's grieving, but when he's had a chance to think about things and realise that in the absence of a will, marriage certificate or your mum's name on the mortgage everything legally passes to him, his initial generosity may wane.

candice56

Thank you both for taking the time to read and reply. I have spoken with a solicitor who said she has rights to live there as his long term partner but this would require us to put a claim on the estate and ideally I would like to keep everything friendly. PLus he really didnt clarify what happens to the mortgage as the son wouldnt be able to pay it and my mother wouldnt want to either if not her house.

At the moment he is happy for her to have the house (just hinting at it being for life) but any idea on whats involved in the transfer or how to avoid him 'reserving any power'??

msmicawber

I'm sorry, candice, but I don't know and believe that there may have been changes in the law recently to try and safeguard partners in your mum's position. I'd recommend getting back in touch with the solicitor and asking for clarification on those points - they charge enough, so should explain the situation fully even if the Law isn't clear on a particular point, in which case he should say that. It may be that because there's been recent changes, he's got to research it a little more.

Best wishes.

candice56

Well thank you again, just a pain that easter is in my way now.

noh

The solicitor has given you the correct advice. As unfair as it seems you mum has no automatic rights to any part of the estate.
You cannot legally transfer the ownership of the house to your mother without the consent of her partners son he should take his own legal advice. The mortgage is now a debt of the estates and needs to be repaid. You need to come to some amicable arrangement with the son or lodge a claim on the estate.
If you apply for and receive letters of administration its your duty to deal with the estate in accordance with the rules of intestacy http://www.hmrc.gov.uk/cto/customerguide/page14-1.htm
which indicate the whole estate passes to the son.
More info here http://www.direct.gov.uk/en/RightsAndResponsibilities/Death/Preparation/DG_10029802

Another thought what is the value of the estate? Is any inheritance tax due?

Nigel

candice56

Fortunately inheritance tax doesnt come into it as the both houses together wouldnt exceed 250k. :j

I am happy to accept that my mother could just live their but as the son is currently agreeing to transfer it all to her and has even mentioned paying the mortgage (but in reality a bank wouldnt touch him with a barge pole and he always borrows off my mother!) I would like to pursue that option.

I have all the forms for a grant for letters of adminstration and he is even willing to sign a letter to say I can deal with everything. But is it possible?, is it legal?, are their taxes? and does he have any comeback????

Your post is really helpful so if I can pick your brains further that would be great.

noh

Yes I believe you can apply for letters of administration with the sons consent. He can agree to give your mother the house or the right to live in it. I believe that this could also be done via a deed of variation which in effect alters the distribution of the estate. Some info here
http://www.hughjames.com/personal/assetmanagement/deedofvariation.html

If the son is in agreement I would suggest the best outcome for your mother would be for him to effect a deed of variation to give the house to her. She can take out a loan to repay the outstanding mortgage.
Any arrangement you wish is possible and legal with the consent of both parties but you both need to take independant legal advice to avoid any future problems.

Nigel

silvercar

A difficult time for you all.

There is nothing wrong with you administrating the estate, and I'm sure all concerned would be grateful for your help in this.

If the son is happy to give the house to your mother then this should be done legally and correctly to avoid problems down the line.

As well as your mother taking legal advice, any potential beneficiaries should be advised to do the same, or at least sign something to the effect that they have declined to do so. You don't want agro years later when people claim they were being bullied or coerced in their time of grief to do things that they later regret.

candice56

Thank you all so much for your help