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The two case studies to the right best show the risks.
Both of these case studies show an unsatisfactory outcome. In case study 1 a better option would have been for W to grant her child C2 a right-to-reside in her property for a number of years after her death; this would have given C2 the opportunity to adapt to their forthcoming change-in-circumstances.
In example 2 a better option would have been for daughter D to make a Will in which she gave a life interest in her father’s share of her parent’s family property to her mother GM. GM could then have benefited from the property until her own death, at which time the half share could then go to H under the terms of daughter D’s will. By doing this H could not have forced GM out of her own property.
Right to Reside trusts, and Life Interest Trusts can be used for many purposes. The above are just two examples of how they can make life easier for vulnerable family members.
Concerned?
When taking your instructions in our Home-Visit Will-Writing Service we explore the possibility of property changing hands in the event of your death, and the risks associated thereto. We explain the benefits and the drawbacks to the trusts that can be used to provide the protection you want.
Please contact us to discuss your concerns, and discover how easy the solution might be.
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How to protect a tenant of your property
Do you have an adult-child living with you?
Do you own a share of another relatives’s property (e.g. your parent’s house)?
If so, could your death have major implications for them?
To see how you might need to protect these vulnerable people please read on.
Case Study 1
Mother W has two children C1 and C2. Child C1 as left home, is happily married, and has a mortgage to pay on his property. Child C2 is still living with his mother.
W intends that her estate should be shared equally between her two children when she dies. This is reflected in her Will.
When W did die the family home was sold and the sale proceeds were shared equally between C1 and C2.
The problem with this however was that C2 ( who had been living with his mother) no longer had a home to live in and was forced to use his inheritance to pay to rent a property. His income was insufficient to qualify for a mortgage. Meanwhile C1 was laughing all the way to the bank; he was able to significantly reduce his mortgage and continue living in his own property.
Case Study 2
When Grandfather GF died his Will gave his share in the family property (see ‘Severing the Tenancy can provide estate planning opportunities’ in the menu above) to his daughter D, and not to his surviving wife GM.
His daughter was happily married to her husband H, though there was a tension between D’s husband and GM. Unexpectedly daughter D died and her estate, which included the half share in her own parents property, went to her husband H under the rules of intestacy.
The husband became increasingly desperate for money and eventually demanded that is wife’s mother GM buy him out of her family property. GM could not raise the money and as a consequence had to sell her own home to pay off her son-
