Inheritance and protecting myself

[Aussierose2]

So my Grandmother recently passed away. We were all extremely close to her and it's been a very upsetting time. She left everything to her only child my Father.

This included money and a property worth a fair amount of money. My Father moved my brother into the property immediately. He pays no rent and now rents his house out and gains income from that.

My father owns his own property and has some money from inheritance but this does not equal the cost of my Grandmother's house. He's saying he wants my brother to inherit the house but me get everything else. The problem I'm having with this is that it doesn't all add up to the same amount and if he needed care that's any money gone and he would have to sell the house he lives it to pay for it also so I could be left with nothing ( obviously we would want the best care we could afford for him ).

In this situation would you ask everything be split 50:50 instead with the intention of your brother buying you out instead ? Does that seem fairer ? Obviously my Father doesn't have to give anyone anything and it's kind of him to even consider me, but just wondering what people's thoughts on this are !

"In this situation would you ask everything be split 50:50 instead"

In this situation I wouldn't be 'asking' for anything. It's your father's inheritance and he can do whatever he likes with it: fritter it away, donate to charity, favour one child over another. It's not the done thing to be mentally dividing up his money/possessions while he's still alive. If he's discussing it with you, fair enough, give an opinion on whether his suggested distribution is equitable for you and your brother. But don't be 'asking' him for a specific split.

It might not be the done thing to talk about inheritance but it is the sensible thing. I would discuss your concerns with your father. For what it’s worth DH and I are in our 60s and 70s and have had the inheritance talk with our DDs. It’s better that everyone knows where they stand.

I think it's fine to raise your concerns that it may not end up being an equal split, in case he hasn't considered what you have thought of.

However, absolutely not ok to make suggestions/ ask him to change it.

Yes we are discussing it he's asked me to go away and think about it and that it's not set in stone yet so this is why I have asked as he has asked my opinion on it.

Yes I think it is sensible I will definitely be doing the same with my children too.

What’s your fathers reason for his suggestion? I presume your DF owns his own house so if he needed to go into care, his house could be sold to pay for it?

Sounds really unfair. Why can’t your brother at least sell his former house and give you the proceeds directly?

Definitely bring it up. My DF has just passed away and everything is set out and clear. There are no surprises between my siblings and I. Not saying that in any superior kind of way but there is enough to deal with when a parent dies without any extra turmoil about money, or lasting grievances between siblings.

It’s good that people know where they stand, these discussions should be had.

But your father is being very old-fashioned and unreasonable, in fact I would disown mine if he did what yours has done to you; your brother probably manipulated your father into doing this and he would be disowned too.

What would happen to his house, not the one he inherited?

Just tell him you would rather 50:50 and are happy for your brother to them buy you out of your share.

At least he asked your opinion - probably knows it's unfair, deep down, and wants you to make him feel better. Don't. Also point out you are not able to profit from living rent free currently, unlike your brother, so perhaps if anyone is to inherit the house it should be you to 'even things out'

I think the house the brother is in would be valued with regard to care home fees unless it is legally handed over to him.
If DF gives away stuff/ money it takes 7 years to fall out of inheritance tax liability.
I think I would get the facts as regards inheritance tax and discuss with DF passing some money over now. Possibly selling DGMs house and sharing it between you.
No one knows how high care home fees will be it could take all his house and savings. Does he realise this.

Your father clearly wants you to be considered, so talk with him in an open way about the way it could work.

He is obviously thinking of writing / re-writing his will, so maybe suggest that he writes a list of his aims and wishes, e.g for both children to have inheritance, and to discuss with the solicitor the various approaches.

Maybe you could suggest some questions that your Dad could ask the solicitor?

It's worth noting that people often misunderstand the 7 year rule which applies to inheritance tax and think this is the same as deprevation of assets re: cost of care.

DOA has no time limit.

So even if your father legally transferred ownership of the house to your brother, if the LA could prove this was DOA then your brother would have to make that money available to pay for care.

My advice OP is to get good advice from a reputable financial advisor.

You're talking about a significant amount of money and it's important your father knows all the pros/cons and legal implications for any choices/provision he decides to make.

So often people make assumptions that then can have profound implications for those left behind and aside from causing ill will don't necessarily meet the objectives the person was trying to meet either.

Could your DF leave him with a life interest in the property, with it then passing to you upon the brother's death? That way DF can guarantee his brother is provided with security whilst you not losing out on inheritance. Or does your uncle have DCs your DF is trying to consider?

Ask, I would, absolutely unfair as it stands

Sorry, I misread it as DF's brother rather than yours.
That's rather more complicated and unfair. I think the estate needs to be split 50/50 with the understanding your bro can buy you out of the house at a fair market rate.

If it was left to. Your dad it's his inheritance not yours. He can do with it as he wishes

It does sound unfair from an ethical viewpoint as it would be nice if your Dad treated his children fairly.
But from a legal viewpoint, it is your Dad who has inherited everything so it is up to him what he does with the money/assets.

@Aussierose2 I would take a different tack. No one can predict the future, what your father owns now may not be what he owns when he dies.

For example if his will specifically leaves the house to your DB but it is sold for some reason e.g. to pay for his care, then DB would get £0. This applies to other assets e.g. if he left you his home and that was sold you get £0.

Leaving a will 50:50 or other % means what ever his estate is when he dies he knows you and DB will be treated fairly.

Why does he think it’s fair that db is benefitting now by receiving income from his own house being rented out? It seems odd if you are close enough to be having the discussions you seem to be.

This. It is very unfair.