Is it ever a good idea to leave the family home equally between the children?

It really is a matter for the testator how his/her estate is divided. At the same time, testators should realize they can’t speak from the grave and it is unreasonable / impractical to cater for all eventualities on how an estate can be divided up in a will, but avoiding disputes between beneficiaries should not be a default, or a deciding factor for the testator.

There are various situations why a house or its proceeds after a sale would not be divided equally between the beneficiaries. This could include: (a) one or more beneficiaries have health problems and the testator wishes to leave a greater proportion of the estate to them; (b) a beneficiary has provided care etc. to the testator who wishes this to be rewarded by a greater percentage share of the estate; (c) a beneficiary is of a special category (e.g. a surviving spouse or is disabled) and the testator wishes to grant them a right to reside in the property for life; etc.

It’s not that difficult to specify a will that leaves unequal shares. For example, from a will for which I was the executor: “As for my house at X, the same to be put on the market for sale as soon as possible after my death and the proceeds therefrom divided in the following manner, that is to say X% to beneficiary A for his/her own use and benefit absolutely; (b) all the remaining surplus from the sale of the house to be divided equally between all of my children, XXX, each to receive an equal share.”

Otherwise the will can simply state that the house be sold on the market and the proceeds divided equally between all of the beneficiaries.

However, if the house is not being sold i.e. is being left to the beneficiaries, it would be prudent for the will to state how the ownership of the house is being bequeathed, i.e. as a joint tenancy or a tenancy in common. Each of these has implications for the beneficiaries and may also have tax implications. It’s unreasonable to give the executor the power to determine the legal form of ownership.
 
Brendan asked: Is it ever a good idea to leave the family home equally between the children?

Sometimes it must be, because I was one of 6 siblings, the house being left between us, which we sold and shared equally, and my husband was one of 4 siblings who also managed to deal with that situation without any drama or falling out.
 
You only have to read this forum to see how it tears families apart when wills (or lack of them) are wierd, confusing, trying to manipulate from the grave, unequal etc etc.

The main things to do are
Make a will
Ensure it is clear and straightforward and not ambiguous.
Leave clear lists of your up to date assets
Review and update your will every 5 or 10 years
If you are an adult child, expect nothing, and then be pleasantly surprised if you get a windfall.
If you are the parent, spend it all, enjoy life, don’t worry about the next generation.
.
 
I think Brendan’s suggestion is that the will should contain an explicit instruction to sell the property and to then distribute the proceeds to the children - rather than just openly leaving the property to the children without any clarity, for example, on whether any of them should have the option of buying each other out etc.

You seem to have been fortunate in that you and your siblings were in agreement on how to give effect to your parents’ intentions but this isn’t always the case.
 
Then there is the situation where there is an adult child still living in the family home and their siblings have moved out and have their own families. If the family home is the main asset, the adult child could inherit it tax free. If it is sold and they have to use the proceeds to buy their own home, they could be liable to CAT. They may argue they have looked after elderly parent(s). Their siblings will argue they never had to get a mortgage.
 
The late great tax consultant Frank Brennan used query the appropriateness of the CAT break for adult children living in their parents' home and inheriting it tax free. He used point out that more often than not they were there not to mind a parent but because it was a cheap and handy place for them to live.
 
I would certainly agree with that.
 
Very much so. Lots of these scenarios, especially now when rent is so high.
 
I think that is one of the main reasons to keep updating your will as you age. Your beneficiaries conditions change, ebb and flow and you may decide to change to suit the present conditions. It is almost impossible to guess the future state of your beneficiaries.
 
T McGibney said:
The late great tax consultant Frank Brennan used query the appropriateness of the CAT break for adult children living in their parents' home and inheriting it tax free.
Click to expand...
Did Frank Brennan have anything to say about agriculture relief, business relief, gifting a site etc? Unlike the other reliefs, dwelling house relief, once the conditions are met, is not restricted to a certain sector.
 
valery said:
Did Frank Brennan have anything to say about agriculture relief, business relief, gifting a site etc? Unlike the other reliefs, dwelling house relief, once the conditions are met, is not restricted to a certain sector.
Click to expand...
I don't understand your question?
 
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