Opinions needed on how to make things fair between my sister and myself wrt inheritance

[trixymalixy]

To cut a long story short basically my sister is getting part of her inheritance (£140k)early to buy my grandparent's house. At the moment I'm getting nothing but my parents are writing up a new will and want to make things fair between my sister and I when they die (hopefully a long long time in the future!!).

I'm looking for some opinions on how they could make things fair

Here's an idea: how about you and your sister agree that SHE owes you £70,000 at today's value, and that interest etc. accrue on that at some kind of reasonable rate (BOE base rate, inflation, whatever). Then your parents' estate is left out of it, and if/when it comes to dividing things, if she hasn't been able to pay you back, then it's clear what is owed - and that it's a debt from her to you, not from your parents to you, if you see what I mean!

What about jointly buying your gparents house? Or you having a % interest in it worth 70K at current valuation?

I don't think you can do it fairly. £140k is a lot of dosh and the interest saved on not having a mortgage for that amount is considerable. If you look at one of those calculators which show you the total sum paid for mortgage of £140k over a 25 year term you might think twice about this.

Agree with littlefrog about nursing home fees. In todays prices a couple in a nursing home for three years would pay more than £140k.

10 or 20 years down the line things could be very different. If your parents can't afford to give you both the same amount now I wouldn't do it. How about £70k each and she gets a mortgage for the rest of it?

Sorry, just seen she can't afford that option. Go for what elliott said then. Have a joint interest in the house. She should really pay you some rent thhough. Am I sounding very mercenary?

There is a lot for you to think about here.

I understand about wanting to keep your grandmothers house in the family. But it will belong to your sister not you. It is her children(if she has them) that will benefit from this.

What if in the future she needs to sell the house?

Jac

Can't your parents buy your grandparents house in common with your sister, rather than give her the money to buy it.

Then it becomes part of the estate and valued along with all their other assets at the same time.

She gets that bit of house, you pick the bits you want to equivalent value, and then split the rest.

Thanks for all the advice.

i have spoken to my parents about it and it looks like the best option is for me to inherit/gift me their holiday cottage which they think is worth about £160k and then split the rest between my sister and I.

It's not ideal as the holiday cottage is unlikely to increase in value as much as my grandparents house, but seems the fairest way to do it.