Sudden Death and transfer of property

[Halfman]

Some advise please if possible for my Brother in Law.

 

My BIL and his wife about 20 years ago jointly took out a mortgage to buy a house,then about 15 years ago they split up but did not divorce, and she stayed in the house with the children(1 boy and 1 girl)and continued to pay the mortgage herself, eventually the son moved out and the girl stayed and helped pay towards the cost of the house(she now has her own familly and they all live there)

My BIL is still on the mortgage papers but has not paid towards it since leaving, he now has a partner and have lived together for many years, at the moment he receives help towards their rent and council tax because of unemployment

Now his wife has very suddenly Died (leaving no will)and it has always been her wish that her daughter would inherit the house,but there is nothing on paper, My BIL has said he has no problem signing over the house to his daughter, but will he be allowed to or will there be objections of Depravation as he recieved benefits.

 

Any advice I can give him please

[unclebulgaria67]

Some advise please if possible for my Brother in Law.

 

My BIL and his wife about 20 years ago jointly took out a mortgage to buy a house,then about 15 years ago they split up but did not divorce, and she stayed in the house with the children(1 boy and 1 girl)and continued to pay the mortgage herself, eventually the son moved out and the girl stayed and helped pay towards the cost of the house(she now has her own familly and they all live there)

My BIL is still on the mortgage papers but has not paid towards it since leaving, he now has a partner and have lived together for many years, at the moment he receives help towards their rent and council tax because of unemployment

Now his wife has very suddenly Died (leaving no will)and it has always been her wish that her daughter would inherit the house,but there is nothing on paper, My BIL has said he has no problem signing over the house to his daughter, but will he be allowed to or will there be objections of Depravation as he recieved benefits.

 

Any advice I can give him please

 

When he claimed benefits did he declare that he had interest in other property ? Although he was not in receipt of any rent, i think he would have to declare.

 

If he gave any equity away, it would be depravation, as presumably if he was legally entitled to some money, this might mean he would then not need to claim benefits.

 

If there is no will and the asset was not dealt with, then whoever is dealing with the estate will on receipt of the sale proceeds, have to send your BIL his legal entitlement, which would presumably be 100% of the money, as it was jointly owned.

 

I don't think they have any choice but to pay for a Solicitors to deal with this. Perhaps there is a way of dealing with this via some arrangement.

[Halfman]

Thanks for the reply unclebularia67

 

At the moment I cannot ask too many things, he his trying to look after his daughter and grandchildren as this has totally devastated them because it was so sudden.

 

If I can when appropriate I will ask for more information.

[unclebulgaria67]

Thanks for the reply unclebularia67

 

At the moment I cannot ask too many things, he his trying to look after his daughter and grandchildren as this has totally devastated them because it was so sudden.

 

If I can when appropriate I will ask for more information.

 

There is no urgency to deal with this. They should leave it to say sometime in January and see a Solicitors.

[Mr.P]

Was the property held as joint tenants or tenants in common ?

 

If the former, the BIL would automatically inherit the property in full without the need for probate. In the later case, he would only own half and inherit the remainder in full under the rules of intestacy. In both cases, the outstanding mortgage (assuming there is still one in place) would have to be settled before anything could be done. Was there any life insurance in place to cover the death of the wife ?

 

Depending on how willing the mortgage company is with respect to someone else taking on the repayments, it should be possible to use a Deed of Variation to transfer the property to the daughter. Some will argue that this still counts as Deprivation of Capital, but personally, I'm not convinced. You (or rather the BIL) needs to take legal advice from a solicitor versed in both probate and benefits. He could find himself being refused HB on the grounds that he now owns a property in full.

[konark]

Mr. P said 'Some will argue that this still counts as Deprivation of Capital, but personally, I'm not convinced.' Sadly the DWP and LA would disagree with you. Morever the point , that has been alluded to earlier, is if the BIL, who is now in receipt of means-tested benefits, did not declare his half of the property he will be landed with a large overpayment bill and possibly worse. If he did declare it he has a year to use the money to buy another house before it becomes capital. With hindsight, if the person who died had wanted her daughter to inherit she should have made a will to that effect..

[Mr.P]

I will repeat something i said earlier: The BIL needs advice from a solicitor conversant in both probate and benefits matters.

[Halfman]

I want to thank everyone who has commented.

 

I agree that if a will had been made everything would be so much easier, but when you are in you fifties it's not something a lot of us consider.

 

As I understand it she was taken to Hospital with swelling of the leg(s) and within 5 minutes of arriving she died,so not a lot of time to do anything.

 

I think as has been said "see a solicitor who knows about these things" is the only sensible thing to do.

[Guest]

I think as has been said "see a solicitor who knows about these things" is the only sensible thing to do.

 

yep, or an experienced vol advisor.

but, to add generally. spouse, then it auto goes to the other spouse. subject to intestate and anyones entitlements/investigations, spouse can then do what they want with it.