Hi, wood appreciate your thoughts on the below described (complicated and long) situation...
My DH has been a Guardian for his mother for a number of years (dementia; she was in a care home). 3 years ago he sold her house (in NE) and bought a flat (on DMIL behalf and in her name) in the S. where we are.
This was a win/win decision because:
a) the DMIL's house stayed unoccupied for a few years, not easily rentable (a very low rental market in the area + needed a relatively significant upgrade to be able to rent out), so needed to sell anyway;
b) to keep money in the bank with no interest did not look like a wise decision
c) My DM (who for I rented a flat near us) could live in this new flat (in DMIL name) until such time when/if it was needed to be sold (to fund care home expenses for DMIL) [this is a totally different story about my DM - in short, she is my dependant and her living is 100% funded by myself].
So, to summarise the above win/win - we were saving a significant amount on rental for DM; and for DMIL, the money were not depreciating in the bank but were given a high (almost certain) chance to increase through increase in property value.
DMIL passed away last year, no will left. DH is a single child, so inherits 100% (DFIL died a few years earlier). The value is below the inheritance tax threshold, so no tax. The flat is still in DMIL’s name, DH is planning to deal with the transfer process early this year.
My DM still lives in this flat, rent free. No rental contract. All bills (council tax, utilities) are in DM’s name.
We are not planning to sell this flat in the near future – DM will be living there until she is able to live independently.
MNters’ combined wisdom is much welcomed – what we need to watch for/should have done/need to do now?
Many thanks