Moving into mum's house- shared ownership

[Sendcoffeestat]

My mum and I have been discussing splitting her very large home with me and my family moving into one bit while she would live in the other.

We're looking at this being a shared ownership with all financial responsibilities split fairly. My mum has got a solicitor who is going to do the paperwork and act in her interest. We haven't yet appointed a solicitor. I suppose naively I just see the benefits so don't see the need for legal representation. But then there would be questions of what happened if my DH and I got divorced or if I were to die before him or my mum.

Just wondered if anyone has ever done anything similar and if there was any advice or if anyone could think of other potential issues we should consider? Thanks

@saraclara thanks for sharing that. I'm sorry about your mum.

Thanks.
Other than the stroke, she's healthy, but there are real issues around the house that she co owns with my brother, that he's lived in with his wife for twenty years.

Deprivation of assets has no end date as far as I kn*ow
*
Yes, that's what I thought.

Deprivation of assets looks at when the lesson started showing signs of ill health, or got a diagnosis that would suggest that they will need care in the future (even if that is far, far in the future).

So I, at 67 and so far fit and healthy, could give away a fair chunk of my savings and all should be fine. But if someone is already showing signs that they can't manage alone and are having health issues that will be on their medical record, they need to be more careful.

My mum had saved to help my DDs.with their house deposits. But her stroke (fully healthy and fit one day, paralysed and close to death the next) meant she could no longer give them that money.

The lesson is, if you plan to help someone through your savings or your home, do it sooner rather than later.

Deprivation of assets looks at when the PERSON started showing signs of ill health even. Stupid autocorrect.

Get legal advice. I knew of a situation where the DD, partner and three children lived with her mother. When the mother died the house was found to be quite valuable and they were liable for a hundred thousand pounds of inheritance tax.

We've done this with my parents.

We bought half the house from them for money - we had three valuations and paid the middle one, plus stamp duty. We all own 1/4 shares as tenants in common. There is no issue with deprivation of assets as we bought our share. The Council could force the sale of the house, but we would have the equity in 50% of it. In practice, we'd buy mums share out. If they need to move, again we could buy them out.

Bills are split 60% us, 40% them. Food is bought separately.

It's a large house so we have separate kitchens, bathrooms and living space.

Mum has mobility problems so I do a bit of care, but it is mostly just keeping an eye at the moment.

What would be different if they werent living with the mother, IHT has to be paid if its over the threshold anyway?

because their home may need to be sold to pay it
if they lived elsewhere they would just have inherited less.

The tax still needs paying, regardless of who pays it and when, your post implied that if they hadnt been living there then tax wouldnt be required.

We're going through this now, IHT is required on account by HMRC prior to permission being given for the executor to start probate, we had to wait for the letter from them in order to put the flat up for sale.

before going to solicitor go onto law society website and look for a solicitor in your area who has expertise in trust and wills as well - from my brief enquiry into the possibility of helping family member into buying property I found there were a few issues with that too. Basically if either of you got into any type of debt (and that includes your husband in this unless you are very careful) they could claim on the whole house...its very complicated I wouldn't advise it - as pp mentioned getting a living trust might be a better way and this can be done through solicitor.
Legal advice before doing anything with an expert first

wasnt my post

Surely your DM wouldn't let you become her carer though? Indefinitely? Potentially in the prime of your life? She'd really let you do that and allow all the sacrifices and pressures on your family it would likely entail. Wow.

Are you using a mortgage to buy half the house? Would any mortgage companies have a product for that?