To buyout or not buyout!

C

Click

Registered User
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12
Hi,

A friend of mine asked me to throw this one out to the 'vastly' knowledgeable posters on this site :D

His sister sold her house a while back, no mortgage, and moved in with her husband & 3 kids to their mother’s house that lives on her own.

He is not sure what his sister’s long term plans are but is aware she does not have enough funds to purchase a house in Dublin which is where she wants to live.

He was going to suggest to his sister that she buys him out of his share of the house (there is only the two of them)

This would mean his sister would become the sole beneficiary of the house on the death of their mother (She is 76 & could live for another 20 years +)

Is this a good deal for his sister? She could end up with a 450K house for about 150K (The family buyout discount!)

He wants to know is this madness for his sister/him.

What are the ups/downs of this deal? Does it make any sense?

I've talked it through with him & have explained what I think but he is looking for more opinions??

Over to you:)
 
His mother can expect to live another 10 years and probably 20 years.

In that time, anything can happen. His mother can fall out with either the daughter or the son.

Has the son any basis for assuming that he will get half the house? I suspect not. It's quite possible that the mother will leave it to the daughter who cared for her.

Did the daughter do a deal with the mother when she moved in?

I think it would be cheeky for the son to make such assumptions unless the mothter has indicated that she is going to do this.

Brendan
 
Hi Brendan,

This was one of the points I made to my friend. I mentioned the Arron Spelling situation leaving 150K of his 40mil to his daughter.

He said he had mentioned it to his mother & she said as long as both of them agreed (sister & brother) she did not mind.

I also mentioned to him that if his mother required major medical care 1/2 of his mothers life asset has been sold off!

Any other comments?
 
This is a potential minefield. Who looks after the mother's medical/long term care bills if she becomes incapacitated? Who's to say the son won't resent selling his share at 150k if house prices continue to rise. As Brendan says, what if mother falls out with daughter/son in law and no longer wants them in her house? At that point, who still owns the house..mother or daughter? What are the tax implications for all involved?

A friend of mine was in somewhat of a similar position. She and her brother were raised in a very affluent area of Dublin. The brother, who was in his late sixties, remained in the house after the mother died. The two had a very close relationship and, as she had her own home and family she didn't mind. He was unmarried but lived with a woman for over 12 years. She, too, had no other family.

Eventually my friend's brother asked her to sell her half of the house at a nominal rate, given that he had no family and that her children would inherit upon his death. He said he just needed the security and as they had always been very close, she agreed.

Within 12 months of the sale, he rented the house out and bought another one. He also ditched his long term partner, who was left with nothing, met another woman and married her. We always suspected the other woman had been on the side for a while but hindsight is a wonderful thing!

He died recently having been married for 3 years and the new wife inherited the lot..........house worth over 3m and my friend had accepted 40k out of love.

So Click tell your friend to tread carefully and watch out for those mines!!!
 
He should keep it simple. It's not his house. His sister is an adult and responsible for herself and her life. He should concentrate on living his own life to the full.
 
Liteweight, what a story! It's dreadful what people are capable of innit!

Click,

I agree with other posters, this sounds complicated. You didn't actually say who does own the house? If its mum, maybe she wants to keep owning the house! And yes, she may have medical bills later and where does that leave mum then? Or your friend and his sister? Maybe mum will need money ten years later and by then the house will still belong to mum and increased in value so no complications on raising capital. If it's your sisters house then, you can forget about it.

And surely if the house does continue to rise and his sister is gaining all the benefit from this sale, if it could go ahead, surely human nature being what it is, he will always remember this and it will eat away at him, esp if he's struggling later himself.

Keep it simple, people are grown-ups at end of day, and everyone should be living their own lives. His sister will have to settle for something else at the end of the day and in the proprety market, that is often the case!

mica
 
Ria said:
He should keep it simple. It's not his house. His sister is an adult and responsible for herself and her life. He should concentrate on living his own life to the full.
Click to expand...

Agreed. I'm sure this is not all for his sister's benefit though. There's a lot you can do with 150k cash! In any event, if it happens and all goes smoothly, the sister is looked after, (she has house), the brother is looked after, (he has cash to spend/invest)........who looks after the mother???
 
if your friend wants some security on the house side then maybe he ,his sister and mother could change the deeds to reflect this.That way all of their names would be on the house.. has the mother made a will at this stage ? ... the whole thing is a minefield anyways and if the sister split from the husband and he could then demand a settlement from her.. who knows what could happen..this is an ongoing issue in homes all over Ireland and as the baby boomer era gets older and the price of property continues to grow then this sort of problem will continue
 
micamaca said:
Liteweight, what a story! It's dreadful what people are capable of innit!
Click to expand...
It never ceases to amaze me. Believe it or not I have one or two more like that one, though not quite as bad. All happened to people close to me so no embellishments involved. The curious thing is that they all come from small families..one or two siblings. In my case I'm from a family of 9 and when our mother died, we shared everything equally even down to the smallest items. Sorry I know this is going off the thread but I think Click's friend is setting himself up for a world of heartache and possible loss of close relationships.
 
Hi everybody,

I'll pass on your comments/thoughts to my friend.

I've made a lot of the same points to him.

Its a case of keep it simple, stupid!

Good comments about just get on and live your life!

His suggestion comes from a good place, he does not want his mother screwed over by his sister. His sister sold her house 2 years ago has approx. 350K in the bank & has been living rent free since then in the family home.

His plan was to put the 150K aside for his mother in an account in her name.

I agree I think he should just leave it & concentrate on his own life.


Many Thanks for all your comments.
 
One small point: if your friend does not want to see his mother being screwed over, then the best thing he can do is to retain his interest in her property. If the mother has to go into a home, for example, he can insist the house is sold to pay the costs as it will still be in his mother's name.
 
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