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House right to stay after someone dies

53 replies

Gonnagetgoingreturnsagain · 26/02/2024 22:09

My DM lives with my stepdad and has done for years now. They’re not married. House is in DM’s name as she bought it and paid off mortgage early too.

Plan on her death is to leave house 3 ways to me, DB and stepdad - that’s in her will. It’s a big Victorian house in a now desirable area and stepdad wouldn’t be able to buy us out. He’s 10 years younger than her.

I had no idea until I asked her recently that the house is still in her sole name and she has no intention of either marrying him, civil partnership or putting in both their names. DM was married and divorced twice in the past, so was my real dad (3x) and so was her DM (my nana). There were issues with legacies and wills in the past in our family on DM’s side. Me and stepdad I won’t lie have crossed swords in past, he’s sort of ok now. He goes from being charming to very sarcastic and sometimes unpleasant to me for no reason when I visit. DM and me just accept that’s the way he is and he won’t change now. He’s also been violent and a functioning alcoholic in the past. Lies a bit too. I’m now feeling slightly guilty though, I’ve got my own house but when DM dies I might feel uncomfortable selling a house where he’s lived most of his adult life so we get our share. I think (so does DM but she never confronted him) that he had an affair once too, maybe that’s the reason. Not sure if the OW is still around. I’d lay money if I hired a private detective they’d find out but don’t want to open Pandora’s box up.

So what could/would you do? Legally they’ve sorted things out with separate wills including a holiday home they both own in France. Stepdad has more money in savings and DM has lots of investments. I suppose it’s more a moral question rather than legal maybe.

OP posts:
Gonnagetgoingreturnsagain · 01/03/2024 13:15

GimmeGin · 01/03/2024 13:04

Sorry @Gonnagetgoingreturnsagain I’m not any expert on IHT at all, but know from when my own mum died, there was a personal allowance of £375k plus an extra £125k if leaving estate to children. Not sure how leaving one third to an unmarried partner affects the £125k extra bit.

So £500k total tax free before the 40% tax rate kicks in.

if your DM had been widowed rather than divorced, that allowance doubles up to £1m.

as I say, I’m no expert, so perhaps get advice on the shared properties and investments. 40% is quite a whack when you are expecting it all to be tax free.

I think I will speak to my DM just to ensure she has it all worked out. A friend of mine as you say, she was left a big house and said it was hard work coming up with the IHT for it.

OP posts:
KnickerlessParsons · 01/03/2024 13:36

If he stays in the house, I would say that he'd have to pay you and your DB rent: 2/3 of the market rate as he will own the third third himself. He would pay all the bills too IMO, but maintenance should probably be 2/3 you and your DB, unless it's stuff he's broken.

Gonnagetgoingreturnsagain · 01/03/2024 16:48

KnickerlessParsons · 01/03/2024 13:36

If he stays in the house, I would say that he'd have to pay you and your DB rent: 2/3 of the market rate as he will own the third third himself. He would pay all the bills too IMO, but maintenance should probably be 2/3 you and your DB, unless it's stuff he's broken.

That's a good point. It depends really then what DB wants to do and also what I want to do. DB is currently buying a house (or looking) but it won't be their forever home and I might decide to move further out so sell mine. Plus potentially if the family home is sold I can use some of profits to live off and retire earlier than I would do.

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