To not want this inheritance if it lands me in debt?

[Kenclucky]

Bit confused about this -

DM bought a leasehold flat in one of those semi-managed blocks with a warden, communal gardens etc. She's getting on a lot now and told me today that the flat is left to me in her will - but that that means the communal fees and mortgage would need to be paid until the property sells.

I don't think there's any mortgage on it, or if there is its only small. But the communal / service fees are really high - about 1k per month.

Now me and DM sadly don't get on well at all which is a bit by the by, but basically I wasn't expecting to be left anything and really don't want anything from her. Those types of flats in those blocks seem to take forever to sell - her one was on the market over a year before she bought it and there are at least 3 others for sale in there. So I'm pretty worried I could end up saddled with this thing and having to pay 1k+ a month which I really can't afford for an unknown length of time.

She says she's put me as Executor on her will, which makes me liable for all payments. And also if I become the owner of the property I'm liable anyway.

I could refuse the inheritance- but looking at Google it sounds like that would make it pass to the next in line, which is my children and would be in their late teens / early twenties so obviously I would never saddle them with it either. There is nobody else, she has no other family.

Are we basically stuck with her ongoing payments eventually, one way or another? And AIBU that is a rubbish system if so to be forced to pick up the pieces for something you don't even want...

You can refuse to be the Executor and
/ or you can refuse the gift. If you refuse the gift it falls into the residue to pass to the residuary beneficiary or beneficiaries. If that is also you and you have refused it falls into intestate estate. None of the beneficiaries under intestacy can be forced to accept it either. It will eventually pass to the Crown.

Shared ownership isn’t such a bad idea on this type of property - especially if you’re downsizing. If you only own 25% of the property then it can free-up cash needed for care costs. My parents have recently done this. Having a 25% stake means there won’t be any/much money left when they have both passed, but it means they can currently afford to pay the 3k monthly care cost that my dad needs (from the equity from their previous house). They bought the place at full market value, but have only invested 25% as equity. Mind you, this is with a reputable Housing Association charity who have been great to deal with. We don’t expect the flat to sell anywhere near what they paid for it, but have been grateful to be able to keep dad at home, looked after and together with mum.

A relative died earlier this year. All expenses that needed to be paid until probate was sorted (and that included sale of house) came from estate. The executor incurred no costs because it just came direct from Estate. It sounds standard.

The government are supposed to be looking into leaseholds as was the last government supposed to be but I'm not sure that includes all the extra charges that are included in retirement flats, I suspect not, it may be just general flat leaseholds. I would thoroughly look into it before buying, the charges can be huge.

This is what DH says but I'm not convinced- as others have said on here sometimes you literally can't give them away

I think I read though that in doing so my DCs would lose the right to any savings they'd been left. But I guess those would be taken to pay for it's upkeep until it sold. Very sad state of affairs.

Summertown.

Don’t think you could buy a parking space in that area for £50k normally.

This isn't just a retirement flat thing, all flats have service charges and they continue to be charged even if the flat is in probate. The estate owes the money not the beneficiary. So you can pay it out of the estate money (eg any cash left) or ask if it can be rolled up and paid in one luml sum once it is sold

I am director of our freehold company and when a flat owner dies we generally agree to suspend service charges until the flat is sold and take them all in one lump sum then.

Obviously a difference is scale, our service charges are about £2k a year as ours are "normal" flats.

If it is one of the really aggressive retirement village companies and there is also a mortgage on it the best option might be for Mum to make specific bequests to you and your children. Stuff like her jewellery, her premium bonds, any shares or savings and leave the flat to charity so that you don't have the headache.

Charities have lawyers that deal with this stuff all the time and pursue any gifts aggressively, just make sure your share is clearly identified and not a % because Charities will screw you over to maximise their return.

That sounds like a good idea - like I said, I literally want nothing so long as my kids get their savings inheritance. So I couldn't care less if the charity had anything that was left. But is there not a chance the charity could reject it for the hassle too and then we're back at next of kin gets it?

Yeah, from what I have seen online, some of it looks lovely and a nice supportive environment.

It is a really lovely one to be fair. It's a beautiful flat, nice grounds and the service includes check ins, meals, regular free activities etc. But they do seem to stay on the market years not months.

I think if your the beneficiary and the executors of the estate you don’t get any grace on the council tax
we definitely didn’t as my sister was a beneficiary and a executor so we had to pay the council tax till the house sold

I wonder if your Mum could leave it to the company that own it? Only half joking...

A friend has recently “ inherited “ one through quite tragic circumstances
he relative paid 95k for it last year
put it up for 100k as advised by the estate agent
dropped it to 80k within 3 months
got an offer for 60k
has now accepted 55k

she just wants rid of it

You were not expecting anything so anything you get is a bonus. So just sell it for a low price. There is a price that things will sell. Just undercut everyone and get rid of it

They’re not generally like that lol. Many are really nice places. But, they are very, very expensive when service charges are factored in. 🙂

Surely there’s a point at which they’re so cheap that they ARE appealing? I mean, the Oxford one mentioned - some elderly people must be downsizing right now from properties that are astronomical in price, with good pensions too… paying £50k for a nice flat in walking distance of Oxford amenities seems affordable if you’ve just sold a house you bought 40 years ago for £50k for £950k or similar? Just give your kids a gift then pay the service charges. Then leave it to charity. No?

(i do realise that in future years the £££ economics of this may not work out for us)

I'm unfortunately classed as elderly at 66 but if I sold my house which is probably worth about £250k and bought one of those cheap, not cheap really flats I probably wouldn't be better off, not everyone older has a £950k house

They are just a mechanism for liquidating the assets of the elderly and funneling them into their own coffers 🤬

I think so, too. Some of the fees are completely exorbitant, there are a couple of places round my way where they are over £1.5k a month, that's more than the state pension pays.

Mind you, I've also seen non-retirement flats where the service charges are a several hundred a month, just for cleaning the communal areas and maintaining the lifts and the grounds. I need to downsize now I'm old and getting decrepit, and could do with releasing some equity to give me more money to live on, but if it's going to mean paying thousands a year in service charges, it won't last long.

MIL had one, it's where you go to wait to die

I have a friend whose DF died in December 2022. He lived in a warden assisted house. The house has not yet sold & my friend & sibling have been liable for all the maintenance charges. Sadly the sibling has since died very unexpectedly. It's a burden.

There are rules about renting out such places. It's not straight forward.

We are all waiting to die.
what a horrible thing to say, so dismissive of all who live in them