Advising Father in Law

Lawful InLaw

I've heard my fair share of families falling out due to wills over the years. I always hoped I wouldn't be involved in such turmoil. So here I am hoping to see if it can be avoided. I want to be careful with giving too much details but will do my best to paint the picture.

Firstly, I've no interest (nor my partner) in receiving any proceeds of inheritance or title from all of this. It's entirely to help the FIL ensure his wishes are carried out.

The question (and I hope the answer) is simple:
Could the FIL transfer ownership to one of their children unbeknownst to other family members without legal ramifications? The FIL and his wife are still relatively young and of sound mind. Or is the act able to be challenged regardless? The house, really is not worth a lot but there is one particularly nefarious sibling whom he doesn't want to let near it. This sibling has the qualifications and the means to make life hell for everyone else and has threatened as much in the past. The rest of the family live off very modest incomes and would unfortunately be completely outgunned in a legal dispute.

Just to say I have massive respect for my FIL and it's not his fault, one of the kids turned out to be probably the most dishonest and scheming person I've ever met. I really don't want any part of it but for my partner's sake I said I'd look into it. I to give my FIL (who wouldn't have the money to speak to a solicitor) an easy out, if there is such a thing. My partner (and the talking siblings) would like to see the matter put to bed so no legal battles ever arise. Am I being too hopeful?

Just to add a fly in the ointment, the deeds may have already been swiped from the house by said nefarious individual but we won't go there until the FIL has a proper look. He hasn't found them yet though.

Lawful InLaw

Re-reading my original post I'm conscious of the word advising in the thread title and want to abide by the charter.

I should clarify, I'm not looking for advise and the FIL will have to talk to his solicitor at some point. Myself and the OH will offer to pay this cost for him for this but we're not flush ourselves. Our aim is to minimize costs the costs and pain that could occur to the rest of the family in the future. If that means just gifting it to the pariah is the simplest solution we're willing to accept that. We'll discuss the other avenues with the solicitor.

So, the simple question is. Is the act of transferring deeds (gifting) or adding names to deeds contestable like a Will would be?

coylemj

Why doesn’t your father-in-law just stay in the house and forget about transferring it to anyone in his lifetime?

None of the children has any automatic right to inherit the house. Your FIL can simply make a will where on his death, the house goes to his widow (assuming the house is currently in his sole name) and thereafter to one or other of his children. Or to the cats’ and dogs’ home.

Victor

Lawful InLaw wrote: »

Could the FIL transfer ownership to one of their children unbeknownst to other family members

Property transactions are public record. However, the person would need to go looking.

without legal ramifications?

Parents are expected to provide for their children, However, if this person is well off, it will be harder for them to do so.

coylemj

OP, you also need to consider the tax implications of passing the house down a generation well before your parents in law pass away - you said your FIL and his wife 'are still relatively young and of sound mind'.

Say the house is gifted to a child, the parents remain living in it and they pass away in 20 years time. The child who now owns the house will discover that if they go to sell it, they are liable to pay tax on any appreciation in the value of the house over that 20 years. Because it will not have been their principal private residence. Whereas if that child is left the house in the will, there will be no such liability and no tax at all to pay if the value of the house is below the threshold for an inheritance from a parent which is currently 335K.

You also have to consider worst case scenarios which might arise from the transfer of the house to one of your partner's siblings if the parents have many years left to live. Say that brother or sister of your partner who now owns the house dies and their widow(er) remarries, where does that leave your FIL and his wife? They could find themselves living in a house which is owned by someone who is not a blood relation. It could get very complicated and messy.

Lawful InLaw

Thanks for the replies.

@Victor: This person would without doubt be looking and has bragged to the FIL in the past that they would be aware of anything he does. So that explains that. They have qualifications themselves and contacts in the industry such that we'd even be cagey what solicitor we talk to. Likely to take it out of the county.

I'm aware of the property price register but did not know gifted transfers were public record. If I'm reading it correctly then it would be contestable.


@coylemj: It's in both husband's and wife's name. I'd love if he could simply do what you say. But he's already been worrying about it. If it comes down to the Will though, 100% it will be contested and the FIL doesn't want that visited on his kids. Only one of them would take joy in all the wranglings that could follow. Also, most of the family will be too broke to try and defend it. The legal costs could easily outweigh the value of the holding. I'd be advising him to just pass it to the tyrant in that case as they'd take less satisfaction in it. For them it's not be so much about the their entitlement, the nostalgia of the property, the location or the value (although they'd happily take the value for it). They want to get one over the old man and siblings.

I assume simply adding a name to the deeds would not be public record? However, on passing, the transfer of the co-ownership of the deceased (him or her) will again be contestable I'd assume and we're back to square one.

Lawful InLaw

coylemj wrote: »

You also have to consider worst case scenarios which might arise from the transfer of the house to one of your partner's siblings if the parents have many years left to live. Say that brother or sister of your partner who now owns the house dies and their widow(er) remarries, where does that leave your FIL and his wife? They could find themselves living in a house which is owned by someone who is not a blood relation. It could get very complicated and messy.

A very good point. I'd considered some eventualities but not to that level. Lots more to consider but I don't want this to consume me too much. We feel something will have to be done sooner rather than later though so that a statute of limitations could be applied. Is it 12 years or something colossal like that?

I'm going to write out scenarios and visit a solicitor myself. It's unfamiliar territory for me. I'd assume an hour or two consultation.

coylemj

The children have no automatic entitlement to inherit from the parents. And similarly, they cannot stop your FIL from gifting the house to anyone he chooses. Obviously his wife has to consent, both because her name is on the deeds and also under legislation covering the family home.

You or they need to talk to a solicitor and devise some solution. The option of adding one of the children as an additional joint owner might be worth exploring, if done in a way that would result in that child becoming sole owner when the parents pass away.

The 'tyrant' might threaten to go to law over the will but as I stated above, they have no right to inherit and realistically, the only way they could overturn the will would be to show that the parents were not of sound mind when they made their wills or there was some technical defect in the will itself. Otherwise, they would be wasting money contesting the will. But I understand the anxiety this is causing so better if the sitution is tied up in such a way that everyone's mind is put to rest.

Victor

Oh, it might be exploring this point. A will can be contested, a gift generally can't.