Inheritance advice

Anele22 · 2021-03-22T12:17:26+00:00

My DP and I are not married. We live in his house. I have a house too, in another city, which is rented out. I live on the income from the rent. We each have DC. When we die his DC will inherit his house and mine will inherit mine. My question is what happens if he dies before me? Do I have to move out? I accept that the house will ultimately belong to his DC and I don't have a problem with that. My issue is that it is my home and if he dies I become homeless. I don't want to move back to where my house is - my life is here. I don't want to sell my house as I live on the rent. Does anyone have a solution to how I can stay in my current home until I die, without depriving his DC of their inheritance? Currently I feel like I'm a lodger here rather than an equal partner.

Chasingsquirrels · 22/03/2021 12:20

Your DP can amend his will to give you the right to reside in the house after his death (for a fixed period or for your lifetime). But that would be his choice, not something you could impose.

jimmyjammy001 · 22/03/2021 12:24

His house will legally become his children's and I doubt they are going to let you live there rent free, you either sell your other house and pay rent or find a way to get an income through a job, or you marry him and then legally you get half of his house and he gets half of yours.

What about if you were living in your house and you died and your partner wanted to stay living in it rent free depriving your children of their inheritance?

imyournextdoorneighbour · 22/03/2021 12:31

Why don't you sell your house and buy another in the area where you live then you have the option of living there if he dies?

ErleighBird · 22/03/2021 12:31

My auntie was in a similar position and her parter put in his will the right to stay for the rest of her life.

It was effectively meaningless as his children made it so uncomfortable for her to stay she couldn't bear it for long.

She always saw it as security for her and it was incredibly sad to watch it unfold.

Wingedharpy · 22/03/2021 12:35

Have you had a conversation with your DP about this?
What are his thoughts?

HeyDemonsItsYaGirl · 22/03/2021 12:37

Get a job and pay your own mortgage.

Wingedharpy · 22/03/2021 12:39

I have a friend who was in your position.
Her DP had made provision for her in his will, that she could remain in the house for her lifetime but, if she married or had another partner who she wanted to live with, the house would have to be sold and his child's inheritance handed over.

PantherPantherus · 22/03/2021 12:39

A life interest in his will allowing you to reside in the property until you die (or for a fixed period of time) with the property going to his kids in tail. See a solicitor - one that is STEP qualified preferably.

There will be an inheritance tax bill though if his estate exceeds £325,000. That will need to be funded partly out of the property and other assets - ie potentially borne by you and his children. There is no spouse exemption if you are not married.

Singlenotsingle · 22/03/2021 12:42

My stepfather lived with his sister in her house, because she was ill and he looked after her. When she died, one of the sons moved in and lived with my stepfather in the house. They weren't on good terms, both being difficult to live with. It got physical and my dad had to move out. Then the nephew sold the house!

Original poster

Anele22 · 22/03/2021 12:43

@Chasingsquirrels

Your DP can amend his will to give you the right to reside in the house after his death (for a fixed period or for your lifetime). But that would be his choice, not something you could impose.

That's what I was hoping and I thin k he'd be happy to do that. But he seems to think his DC would have to pay inheritance tax twice.

OP posts:

Biscuit9224 · 22/03/2021 12:47

Have you had a conversation about this with your partner? If you haven’t, please do! You are in a vulnerable position but I guess you have the advantage of owning your own place - you could always sell it for £££ in the future.

I’m sure if he wanted to your partner could write in his will that you can reside in the house if he was to die but still the house be his children’s eventually.

I’m living with my dp who owns this house , he bought it before we were together, we are not married and I’m not on the deeds (hopefully we will marry one day 😂). We have two dc together. His will states that if he dies the house is mine to live in, move, sell it etc but when I die it goes to our children. Of course I’d leave it to my children anyway so that states the obvious! He’s done this because he is worried if he dies young I will meet someone and he doesn’t want anyone else making it complicated or trying to claim the house is there’s.

It’s so morbid op but the conversation is important.

Original poster

Anele22 · 22/03/2021 12:48

@PantherPantherus

A life interest in his will allowing you to reside in the property until you die (or for a fixed period of time) with the property going to his kids in tail. See a solicitor - one that is STEP qualified preferably.

There will be an inheritance tax bill though if his estate exceeds £325,000. That will need to be funded partly out of the property and other assets - ie potentially borne by you and his children. There is no spouse exemption if you are not married.

Thanks. So would the inheritance tax need to be paid while I'm living there? I think that's his worry.

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sleepyhead · 22/03/2021 12:48

It's up to your dp. He may not want his dc to potentially have to wait years to be able to access their inheritance.

Who would be liable for maintenance on the property in the meantime? His dcs may not be in a place where they could maintain it and you may not feel that you should contribute to an asset that ultimately doesn't belong to you.

Do you currently contribute to the upkeep of the property? What is the age difference? Is it likely that your dp will predecease you? What is the value of the property? Are the dcs likely to have the funds to pay any inheritance tax owed without selling?

PantherPantherus · 22/03/2021 12:50

Yes, but it can be paid off over 10 years.

It is often about the same as the rent you do not need to pay, eg rental yield 4%.

Original poster

Anele22 · 22/03/2021 12:51

@Biscuit9224

Have you had a conversation about this with your partner? If you haven’t, please do! You are in a vulnerable position but I guess you have the advantage of owning your own place - you could always sell it for £££ in the future.

I’m sure if he wanted to your partner could write in his will that you can reside in the house if he was to die but still the house be his children’s eventually.

I’m living with my dp who owns this house , he bought it before we were together, we are not married and I’m not on the deeds (hopefully we will marry one day 😂). We have two dc together. His will states that if he dies the house is mine to live in, move, sell it etc but when I die it goes to our children. Of course I’d leave it to my children anyway so that states the obvious! He’s done this because he is worried if he dies young I will meet someone and he doesn’t want anyone else making it complicated or trying to claim the house is there’s.

It’s so morbid op but the conversation is important.

Would you have to pay inheritance tax if he dies?

OP posts:

Original poster

Anele22 · 22/03/2021 12:54

@PantherPantherus

Yes, but it can be paid off over 10 years.

It is often about the same as the rent you do not need to pay, eg rental yield 4%.

That sounds manageable. So I would pay the inheritance tax? Or are they still liable to pay it even though they're not in possession of the property?

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GreenClock · 22/03/2021 12:57

If he dies youngish and you live until 90 you’ll be blocking his kids’ inheritance for decades. This could result in life being quite uncomfortable and awkward for you in your latter years. And would you want that? There would obvs need to be a period of adjustment, no decent person would expect you to pack your bags the day after the funeral, but it would be fair to put a set period on it during which time you can prepare to stand on your own two feet, maybe with a part time job (assuming no or limited disabilities). Perhaps 18 months?

What does he think?

Biscuit9224 · 22/03/2021 13:00

@Anele22 the house isn’t over the inheritance tax threshold! Worth about £190,000 currently!

Original poster

Anele22 · 22/03/2021 13:00

@sleepyhead

It's up to your dp. He may not want his dc to potentially have to wait years to be able to access their inheritance.

Who would be liable for maintenance on the property in the meantime? His dcs may not be in a place where they could maintain it and you may not feel that you should contribute to an asset that ultimately doesn't belong to you.

Do you currently contribute to the upkeep of the property? What is the age difference? Is it likely that your dp will predecease you? What is the value of the property? Are the dcs likely to have the funds to pay any inheritance tax owed without selling?

I'm a bit older. Also, my health is poor so much more likely to die first. But since the pandemic I've really worried that he could catch Covid and die, being a middle aged male. Unlikely now that he's vaccinated and we're both very careful. However, the house issue does make me feel like I'm just a lodger here.

You've made some really good points about maintenance of the house. No, I don't contribute to the upkeep now because that would give me a stake in the ownership so we decided that wouldn't make sense.

I don't know if there'd be enough money to pay the tax without selling.

OP posts:

PantherPantherus · 22/03/2021 13:01

The executors do, but it potentially falls on you as they will seek an indemnity.

Racoonworld · 22/03/2021 13:04

He can put it as a clause in the will that you stay and his children get it once you move out/die. But you have your own house, it's not really fair on his children if you stay in it when you have a property of your own.

Original poster

Anele22 · 22/03/2021 13:05

@PantherPantherus

The executors do, but it potentially falls on you as they will seek an indemnity.

Sorry, can you explain - I don't know what either of those words mean.

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HollowTalk · 22/03/2021 13:10

There's another thread on here at the moment about a similar situation whether a father has died and the step-MIL lives in the . She has the right to be there for two years but is wanting the children to pay for repairs etc. If he does write a will allowing you to stay for a while, then all of that should be made very very clear: who pays council tax, bills, house insurance etc.

The best idea would be for you to sell up and buy somewhere cheaper that would bring in rent. You could invest the equity to live on if your partner died earlier.

Jocasta2018 · 22/03/2021 13:16

You mention that you have a house but it's not in your preferred area. Sell your house & buy one in the area in which you currently live. When your DP dies, you can move into your own house.
It's a bit cheeky to expect to stay in your DP's house after his death. You won't be homeless as you already have your own property!

Fresh01 · 22/03/2021 13:34

My mum and step-dad got married and bought a house together a few years ago. They wrote new wills and gave the surviving partner 3 years to remain in the house. Both have been widowed before and know grief is hard. After that 3 year period, or before if they want, they can choose to buy out the deceased persons half of the house - giving those children their inheritance, and surviving person owns the whole house. Or the house gets sold and the money divided between remaining spouse and the children of the deceased.

My grandmother lived with her sister and husband (he died first) in a house they all bought together. My dad and his brother did not inherit money from the house until the sister died, about 10 years after my grandmother. They had given each other life tenancy on the house.

I would get proper advice as it can get messy and complicated quickly.