Inherited parents house with severally disabled sibling

[Shouldbestudyingg]

Seeking some advice please. My sibling and I are on our parent’s will to inherit their house when they both pass away. My elderly parents care for my sibling who still lives with them. He’s severely mentally ill, schizophrenic with severe learning difficulties. He will not be able to manage their house on his own and will go into supported living when they pass away,

My sibling has a child’s view of money and if given a very large amount would immediately spend it on rubbish or be extremely vulnerable to potentially giving it away,

Also a large amount would stop most of his benefits too.

Does anyone have any advice please on what to do when the time comes? Could I put it in my name then pay him an “allowance” or apply for power of attorney?

Thank you.

There are things like disabled persons trusts.
Your parents need legal advice and then write their wills accordingly.

You could speak to your parents about putting the money in a trust which would mean someone else (potentially you) would oversee how the money left to your sister was spent.

Best thing is to speak to them and a solicitor to find out the options.

Speak to a solicitor but your parents need to put his share into a trust

I think it would be best if your parents tackle this by changing their will now.
Do get POA for your sibling though, it will make things easier in the lomg term

Doesn’t sound like your brother would have the capacity to choose you as his POA so you would need to apply for a deputyship. Would v much recommend getting legal advice from a firm specialising in mental capacity, Court of Protection and trusts.
Do your parents still have capacity to change their will?

How would that work as it’s half their property that they still live in? We will both inherit it and I would be the one to clear it out and sell it. Thanks

Yes they both have capacity, I’ll have a chat to them soon.

Mencap do this, they will help you if you contact them

https://www.mencaptrust.org.uk/

Yes your parents need to consult a solicitor who has experience in making wills when some of those inheriting have additional needs.
Not all solicitors have this experience so they need to find one who does.

Great, thank you!

I used to know someone who had 2 children, one of whom was in assisted living. She and her husband had written the wills so that all of their money passed to the other sibling. They knew that the other sibling really loved their sister and the sibling would make sure the sister got what she wanted and needed.

Disabled trust setup by your parents.
One half goes to him, you manage his bit and pay him cash or whatnot. Doesn't count towards benefit

They need to leave your siblings portion of the the estate in a vulnerable person's trust with you & anyone else they want to be in charge of managing it.
If it is left directly to them they will have to fund their own care until it was gone.
My solicitor did also raise the issue as to whether I should actually leave any of my estate to my youngest as they are likely to have already inherited from elsewhere & it might not be the best choice - different condition but will also need to live in supported housing at some point. Not your question but I was also advised to do this earlier than for it to happen when I die as they will already have alot to cope with & it would be better for them to already be settled

As pps have said, your parents need to set up a vulnerable beneficiary’s trust which holds your brother’s share of their estate after they’ve both died. The trustees can use the money for your brother’s benefit, but without giving it to him directly.

if he’s on certain benefits, this type of trust is also advantageous not just because he keeps his entitlement to means tested benefits, but also in terms of inheritance tax (I’m a Willwriters btw, this is standard practice in your family’s circumstances).

I suggest that you and your parents also make a joint application for a deputyship order in the Court of Protection. This takes quite a long time so you shall delay.

Joint + several deputyship application, as a joint deputyship would end as soon as one person dies. Deputyship might not even be necessary if the sibling is only on state benefits as they can be managed as an appointee. If OP/their parents manage to get funds put into trust, this would be managed by trustees and not deputies.

Yes, obviously J and S, thanks for clarifying.

Typing on phone but hopefully OP gets the gist despite typos 😊

https://www.rethink.org/advice-and-information/carers-hub/advice-for-loved-ones-and-carers/rethink-trust-corporation/

This. It is very important. Cerebra do a free will and trusts information session on zoom every so often.

Thank you so much everyone. This is really helpful, I’ll chat to my parents soon and see what they say.

Disaster waiting to happen, may as well leave it to the local council.
Get a disabled person's trust set up to protect your sibling.

Thank you. Yes if he was given such a large lump sum of money it would all be wasted. We recently found out that he set up around 15 charity direct debits and became overdrawn. He’s extremely vulnerable to any charity vendors on the street or any scams.

Contact mencap, they will be well placed to help you

Disabled persons trust as others have said. Your parents need to do this asap, also if he has this his money will be (I think,) protected from benefit or council charges. Don't quote me on that but I think that's the case.

You're absolutely right to be thinking of this now.

I'll be honest with you - dovetailing death / increasing physical or mental frailty of a parent with getting your sib into supported living will be virtually impossible and will only add to the upset of loosing your parents for all of you. I would of thought it more prudent to find a place for your sib now, whilst everyone is fit and well and it's not an emergency.

I know nothing of Disabled Persons trusts but it's always a good idea to have wills, POA, trusts & deputyships in place BEFORE you need them.