House ownership options

[BeagleMum1]

Hi, I'll cut a long story short but I met someone who works in estate planning & Wills and they suggested that DH and I should change our home ownership from Joint tenants to Tenants in Common. I was at an event so didn't get the chance to get into an in-depth discussion but I wondered if anyone else has a view on this?

You may be better off posting under legal topic? Is it re inheritance you would change it?

Thanks, I'll re post in legal

Why don’t you go back to the person who suggested it and ask why they did, at a time when you can pay attention? Presumably they know you / your circumstances so can explain their reasoning for your specific situation?

It’s not unusual for older people to do this - it means that when one spouse dies they can leave their share to children (with life interest for surviving spouse). And that means, care home fees can’t touch it.

Think carefully about your specific circumstances and what you actually want to happen when you / your surviving spouse if you die earlier get too old and frail to live independently.

My inlaws did this because FIL thought it sounded clever but it was the wrong decision for their family circumstances. FiL died relatively young leaving MiL to a long widowhood and every single time any legal stuff has to happen with her home or property she has to organise couriering of documents around the country for each of her offspring to sign because they are joint owners of the house, and youngest BIL wasn't allowed to access a scheme that would have helped him onto the property ladder because he owns 16.66% of a 4 bed house he can't live in and the kegal juggling required to help him was a screaming nightmare.

Meanwhile when MIL does need to go into residential care - if that ever happens and who knows - of course none of us want her to go into one of the underfunded and understaffed ones that accept council-minimum fees which she would be entitled to get for free because the complicated way the house is owned means "they can't touch it" - because it's only money and morally its her money despite FiLs schemes, and iwe would all far rather it was spent on ensuring she spends her last few years comfortable and safe in a better quality care home if the money is needed for that, rather than being hidden away so that it can't be used for her care when needed.

These plans are designed for families where there's way more money sloshinging around and none of these choices would need to be made. I also don't think people appreciate the difference between different levels of nursing home care and think properly about whether they really want no choice but the cheapest.

If you change the house into tennents in common either of your share won’t automatically pass to the other. It would pass to whoever is named on the will. It can cause problems if you are not left a life interest in it or the other owner wants their share of it, wants to sell etc. Also while you both live in the event of divorce unless you have a deed of trust to reflect your share in the property once changed into tennents in common it will be assumed it’s a 50/50 split ownership.