Who gets your home if you die?
ALTHOUGH PROPERTY values have suffered recently, house prices continue to rise faster than most other investments and property is often the most valuable asset in someone’s estate when they die. A home is such a significant element of most estates that it is important to think about the legal implications and what you want to happen to your property after your death.
When making legal plans for your future, including a new will, it is important to consider how your property is held, to ensure you can give effect to your wishes, as some arrangements may have terms which would overrule your will.
If you own your home with another person, this may be as joint tenants, which means when one owner dies, the home will pass automatically to any surviving owner. Alternatively, property can be owned as tenants in common, when each owner has a set share, which may be equal or unequal. With tenants in common, there is no automatic passing of your share to co-owners. You need to ensure your wishes are clear so your intended beneficiary receives your share.
If you have purchased your property with a current partner and have children from a previous relationship, you may be concerned that your children benefit from your estate but at the same time wish to safeguard your partner from being rendered homeless should you need to move into a care home.
If you want a person or organisation, other than your co-owner, to inherit your home, one option is to include a trust in your will. This can ensure your intended beneficiary will ultimately inherit the property while your co-owner can continue to live there for the rest of their life.
You should also consider the payment of any outstanding mortgages or inheritance, capital gains and income taxes when making your will. The drafting of your will determines who will be responsible for these costs. Alternatively, you may be intending to leave your property to charity. If this is the case, the property will pass free of inheritance tax, as charities are exempt. You will need to give extra consideration to how you wish the charity to receive the property.
Obtain legal advice and instruct a solicitor to draft your will
Our private client solicitors can help you to determine the most practical and logical solution, specific to the circumstances of your estate and intended beneficiaries, as well as all relevant laws. Obtaining legal advice and instructing a solicitor to draft your will for you ensures that proper consideration is given to these issues when gifting property.
If you are unsure about the terms on which you own your home, your solicitors can obtain this information for you and help you understand its legal effect so you are able to make the plans you choose.
Gabriel Alterman is director and founder of Altermans Solicitors, innovative specialists in property, family and private client law. Its team of experienced lawyers is available to advise on a wide range of matters, 0208 346 1777, gabriel@altermans.co.uk