Gifting of family home

[Sewingbeefan]

Can anyone advise me on law surrounding gifting of family home please? My DF passed away recently and before he died told me him and DM had gifted family home to oldest sibling. We are 4 siblings all married with careers DC etc. Oldest sibling was always DM favourite and sadly saw no failings in him - he is narcissistic, arrogant and has done some frankly despicable things in the past but this is overlooked by DM. DF apologised to me just before he died after telling me ( I did all his care and out of the 4 of us was closest). On asking DM now, difficult as grieving but always had upper hand in their marriage, said ‘ it was tax reasons and anyway its done now’. parents never made wills but DF promised money in bonds currently for my DC for uni. DM has made it clear its hers now to do what she likes with.

I am no contact with oldest sibling as is another sibling but last sibling is in constant contact holidays together etc.
I remain hurt as DPs didnt discuss and am even more hurt that oldest sibling had no regard for other 3 siblings and kept this secret. Their DCs set to inherit a lot of money but mine do not. Also having read up on inheritance gifting, as far as I know, no rent at going rate was paid by DPs therefore no tax paid by oldest sibling.
So I suppose I want to ask is this valid given the solicitor that drew the gifting up 8 years ago was the family solicitor ie knew there were 3 other siblings, I totally understand Mumsnet will tell me my DPs house they can do what they liked but i would hate to think my dear DF was coerced ( DM highly educated DF not and quite timid in personality). And will oldest sibling have to pay tax on rent that should have been paid when house eventually sells? Lastly do bank accounts fixtures and fittings go to oldest siblings as estate as house already signed over if DM dies intestate?

Thank you in advance, very very upsetting to deal with and suspect I will have to face walking away from this all.

Even if your father was coerced it is unlikely you can do anything about that now. The fact that the solicitor knew there were other siblings is irrelevant and does not affect the validity of the gift.

Your oldest sibling will not have to pay tax on rent that has not been paid.

Fixtures and fittings go with the house but your mother's bank accounts and other possessions will go into her estate. If she doesn't make a will her estate will be split equally between all four of you. However, it is open to her to make a will leaving everything to your oldest sibling.

It sounds like a plan to avoid the house ending up having to be sold to pay care home fees. Gift it to eldest child with the parents rightly living rent free. You aren't privy to what other financial deals may have also taken place, did he pay off debts or do home improvements for them?

Your mum should write a will saying what she wants to happen with the remaining cash and the non-fixed contents of the house.

Thank you for your replies.

No he didn’t give my parents the time of day before after DF passed, There is a long backstory but not relevant so I wont bore you!

No home improvements prior to DF passing but have been since eg new boiler, double glazing which DM has paid for.
I did wonder about care home costs though and know this can be a ‘way’ to pay for these. Given family dynamics I really dint think oldest sibling will split 4 ways and will use eventual house sale money for his own uses.
I have got to stop being emotional.... but its the house I grew up in, graduated and got married from. Am also very resentful of this big secret that was kept from me and am fearful of seeing DF in a different light whilst am grieving him. Oldest sibling obviously has been very canny, and by not getting rent, has

Saved a lot of tax!
Thank you again.

He'll have to pay CGT on sale.

Thanks @ Collaberate

I don't know whether you have left it too late but it may not be worth all the heartache of challenging it.

But if you're determined, perhaps google Reservation of Benefit and see if that chimes with what you know.

Thank you @CamomileCream
I have had just a quick google and will read up more later. It certainly looks like reservation of benefit with no rent paid. DF did not mention any rent and its a largish home therefore rent to oldest sibling would have exceeded their incoming pension etc.
Oldest sibling had no reason to be gifted house other than DMs favourite child. He has never helped them financially, paid debts or done improvements, if anything I would but clothing and food when I visited. Surely the solicitor would have explained reservation of benefit/ rent when it was signed over?

However, like you say its a whole lot if heartache which am not sure am strong enough to deal with but you have certainly helped thank you.

Thank you all, am very grateful.

If reservation of benefit applies it means that the house should be treated as part of the estate for IHT purposes. If this takes the value of the estate over the IHT threshold the estate will have to pay the IHT. That isn't going to make you and your other siblings any better off and it could potentially leave you worse off by reducing the amount available to be distributed between you.

Thanks @prh47bridge, I think you’re right, it will all go over threshold.
I need to speak again with DM and see how other two siblings feel- so difficult when not privy to any information/ documentation