# Partners vs Parents inheritance rights



## dustie (8 Mar 2011)

Hi,
I have a query about inheritance etc. Bit complicated.. I have a house in which my parents live in my home town. I often visit at weekends but live in the city  with my boyfriend.  The house is in my name and i have a mortgage on the property worth about 50% of the house value, even with recession prices. It was a self build house and my parents invested half of the money (they had withdrawn their money from investments due to the downturn).  

My parents were planning on selling their own house but couldnt get a buyer, so its currently rented, with the rent money going towards the mortgage on my house. In the long term, my parents will sell their house and use these funds to buy me out of my house.

The problem is that my parents are worried that if anything were to happen to me in the interim, they would have no claim on the house. As I see it, it is their house now and that I will buy later on in the city. Their main worry is that I have been co-habiting with my boyfriend for longer than 4 years and that he would be entitled to all my assets in the event of something happening to me. Is this true? As he is not my spouse I wouldnt have thought that would be the case. 

Could I draw up a Will to leave the house to my parents? I have mortgage protection etc so that would be paid. My boyfriend would be getting any life assurance so its not like i'm cutting him out. I suppose my parents are worrying about these things and would like it sorted. Any advice?


----------



## millieforbes (8 Mar 2011)

A will sounds like the easiest way to deal with the issue, particularly if you project a few years down the line and you might get married


----------



## Mrs Vimes (9 Mar 2011)

Sounds like you will come under the civil partnership legislation.  You could get an agreement drawn up limiting your partner's claim on the house, but without such agreement he probably would have a claim if you split up or indeed if you died. You should talk about it to the solicitor doing your will!


----------



## Bronte (11 Mar 2011)

I do not see how the boyfriend has a claim on the rented house?  What 4 year rule are you referring to.  How is your life insurance to be paid to the boyfriend, would it not go to to pay back the mortgage in the case of your death?


----------



## Mrs Vimes (11 Mar 2011)

Under the new civil partnership legislation couples who have been living together for 3 or 4 years (can't remember which) are basically deemed to be married and could claim on each others assets in the event of a death or break-up.

This can be avoided by both parties signing an agreement to not be civil partners.

Sybil


----------



## dustie (11 Mar 2011)

Bronte said:


> I do not see how the boyfriend has a claim on the rented house?  What 4 year rule are you referring to.  How is your life insurance to be paid to the boyfriend, would it not go to to pay back the mortgage in the case of your death?


To clarify, my boyfriend could potentially have claim to the house I own which my parents live in. 
I have two separate life insurance policies, one specifically to pay the mortgage, the other is through work and pays 6times salary if you die while in the job. This would go to my boyfriend as it cant be paid to parents only partners or spouses.

I'm concerned about the reach of this civil partnership legislation which I cant find clear direction on.


----------



## huskerdu (11 Mar 2011)

dustie said:


> To clarify, my boyfriend could potentially have claim to the house I own which my parents live in.
> I have two separate life insurance policies, one specifically to pay the mortgage, the other is through work and pays 6times salary if you die while in the job. This would go to my boyfriend as it cant be paid to parents only partners or spouses.
> 
> I'm concerned about the reach of this civil partnership legislation which I cant find clear direction on.



The civil partnership legislation is very new, and its consequences for every situation is not yet clear.

You need to make a will and you need proper legal advice ( not guess work by anonomous posters on the internet) on whether you and your partner need to draw up any further legal document to clarify that he has no right to the house, if you die or you break up.


----------



## dustie (11 Mar 2011)

Yes I agree. Will be arranging this with solicitor, just wanted to get a feel for the problem as i've heard a lot of conflicting info on the civil partnership


----------



## 4th estate (11 Mar 2011)

Why don't you consider putting the property into the joint names of yourself and your parents. If you specify that it should pass by survivorship i.e. joint tenancy, (when one dies that share of the house goes automatically to the rest or the last person).

That means, that should something happens to you, your 1/3rd share will go to your parents and they will then own the property outright. If one of them die their share goes to you, and if both die you will then own the property outright. There might be some Stamp Duty and Capital Gains Tax, but not too much I would imagine. The taxes might save heartache in the long run.

Joint tenancies operate outside succession law, so that if you die with or without a will, it doesn't matter, the joint property will go to the survivors no matter what. Worth considering in my view. But get legal advice before you do anything.

The new co habiting laws are untested, so to be safe, that is what I would do anyway. Although someone else might find flaws in that aswell.


----------

