Eleanor Metcalf answers a readers question in Choice Magazine published on 24 June 2016.
Q. I am 83 and have recently sold my house for £200,000. My son has suggested we combine our assets and together buy a house which would be suitable for both his family and me. Financially this would be feasible. However, I have bequeathed my assets to be split equally between my son and daughter. How can I ensure that this would happen eventually following my death?
A. A well-drawn up Will can ensure that your assers pass evenly to your son and daughter; the problem (for your daughter) is how it will happen in practical terms if the majority of your assets are tied up in your sons property.
Your daughter can be named as a joint legal owner of the property on your death, with her share equivalent to proportion of the property she is entitled to under your Will, but she will not be able to get the money unless/until your son sells.
Your son and daughter could discuss an equity release, or your son buying out your daughter’s share, but there is a risk that if they are not on good terms, this will not happen, and your daughter would need to apply to the court for an order for sale, which would not be in anyone’s best interests.
If you have other assets, you should leave a letter of wishes to your executors asking them to use these to make up your daughters share so far as possible. If you have concerns about the disadvantages for your daughter, consider declining your son’s proposal and buying elsewhere, or, if your son can afford to buy the property (with an annex for you) himself, for him to go ahead, with you paying him rent if needed, although your Will should provide that the rent comes off your son’s half-share.
If you do go ahead, your contribution to your son’s property can be protected by you being names as a joint legal owner on the Land Registry title, with you and your son holding as ‘tenants in common’ so that your share of the property can pass under your Will, and not to your son automatically on your death.
There should be a declaration of trust setting out how the equity is split between you. To avoid problems on your death and a potential dispute between your son and daughter, sit down and discuss the proposal and its implications for them, so that they understand what you want to achieve and you can agree the best way forward.