Tenant in common

Doodledog

Thank you Marydoll. I wouldn't advise anyone to take financial advice from me though . My post is just what I remember our solicitor saying when we made our wills/POAs.

I was struggling to remember, what was advised, due to the fact I was very unwell and worried that I might pop my clogs at any time. 😉
However, I was definitely of sound mind! 😁

I decided it was better to say nothing here, rather have someone accuse me of disseminating misinformation.

If correctly worded, which my husband's will was, I can move, downsize or sell up and rent if I wish, using the whole of the equity in this house, not just my half. The beneficiaries of my husband's half cannot force me out, but they must co-operate in any move I may wish to make.
If I downsize and money is left over, this has to be split according to his will equally between the three residuary beneficiaries, ie me, and my two step-children.
Everyone is happy about this. OK so the Steps have to wait till I die, but meanwhile they are going to benefit from price rises in house values ( and have already inherited cash from the estate ).
I emphasise that the will must be well-written.

So as you have control over all the money, why can't it be taken into account when it comes to care fees? What if you need care but were fully compos mentis, and wanted to pay for a home that cost more than your half would cover? Would you be able to do that?

If it’s like ours, because the selling of the property and what happens to with regard to a new property are defined in the Deed of Trust, which ensures that the terms of the Trust are not breached - so if I sell my share of the house after my husband dies, for example, the Trustees can’t prevent me selling the other half, but ownership of any new property passes in the same proportions to me and the Trustees to hold in trust for my husband’s beneficiaries. Thus, I would still only have a percentage of a property, plus, of course, my own liquid assets, that could be used for assessing care costs.

There are also some legal safeguards - but not limitations - around rental income and profits from downsizing.

S

What if you need care but were fully compos mentis, and wanted to pay for a home that cost more than your half would cover? Would you be able to do that?

Yes from my own other assets; yes, if the beneficiaries instructed the Trustees (they aren’t the same people) to amend the Deed. Otherwise no. And given that the only real value in our case is to protect at least some inheritance from our house, I would firmly resist any such change.

It’s relatively academic in our case, as my husband is extremely unlikely to need care beyond attendance allowance levels, if that, and I have every intention of selling the house, paying his beneficiaries, and moving abroad when he dies. But, of course, many a slip, and I could get run over by a bus tomorrow!

Thank you for indulging my curiosity.