Is it Possible to Refuse An Inheritance

[HedgehogDay]

I'm just wondering if anyone has been in this position.

My mum has purchased a McCarthy Stone retirement apartment - good on her, she loves it and, as both me and my sibling live overseas and mum has little family around her, she feels it gives her security as she enters her 80s. She is very fit and healthy and we hope she gets to enjoy it for a long time to come.

I am concerned, however, that she plans to leave the apartment to me and my sibling in her will.

My understanding is (apologies if I've misunderstood) that when the time comes, if the apartment takes time to sell, that the service charge and council tax will need to be paid monthly from her estate - and if/when that money runs out the beneficiaries of her will have to pay these charges out of their own funds.

In order to avoid having this millstone round our necks, with the potential to bankrupt us if it drags out long term, can we refuse our inheritance of the apartment?

Mum is also talking about granting PoA to her solicitor for financial matters to save us the trouble of dealing with her finances etc from overseas - will this help things or just leave us as helpless bystanders while the solicitors have all the decision making power?

Many thanks.

Surely it would only take time to sell if you're holding out for a good price. If you're prepared to let it go for "nothing" they'll rake it back same day?

Her estate is likely to be far more diminished by a POA solicitors fees. Far better to do that yourselves. You're hardly likely to want her lawyer making health and welfare decisions (as POA) while she's alive.

After her death, she can arrange that any ongoing expenses of the unsold apartment, are deducted from the sale price when it sells. IOW they are taken out of her estate before the remainder is distributed It will reduce and possibly delay your inheritance but you won't be stuck with those bills yourselves.

My mum tried this with a house she owns in Spain. I had to pay something like £14000 euros a year taxes and service charges. I said no thank you and she sold it.

The POA lapses immediately on death.

As well as a POA she needs to appoint executors for her will. Usually that would be the chief beneficiary(ies) and sometimes a solicitor as well.

PoA will end when your mother dies. The solicitors won't get involved with anything that happens after that (unless, of course, your mother also makes her executors of her will).

Yes, it is possible to refuse an inheritance. You can disclaim it, in which case it goes back into the estate to be distributed according to the will or, if there are no residual beneficiaries, the rules of intestacy. Alternatively, you can execute a deed of variation, which allows you to decide what happens to your inheritance.

POA ends on her death

The fees for the property will come of the estate but there is no liability for beneficiaries.

You will get the balance once bills are settled.

Refusing in advance is just going to stress your mum out.

CT is not charged for the first 6 months after probate, as far as I know.

Just sell the apartment at a price guaranteed to attract a quick sale. Surely!

A lot of people decide to rent them out instead of sell them. Especially if the market is flooded with them at the time

I've never heard anything positive about these M & S retirement homes so I'd tell mother not to leave it to me , they are a poisoned chalice .

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Well it could be, or it could not be an issue. I think it depends on the location and demand. You could sell it for whatever it will raise.