Practicalities of inheriting 50% of a house

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GlenGlasker

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Following the death of my parents my brother and I have been bequeathed the family home on a 50/50 basis. Down the line my brother has agreed to sell his half to me for the market rate.

I have a question in the meantime though and I'm sure I'm not the only one who has come across it so I'd love to hear how other people have dealt with it in a fair way.

I currently live in the house as I moved back to care for my Mum until she passed away and while she was alive I didn't pay rent or contribute toward bills - it was the 'deal' me and her made in exchange for me looking after her. Now that she has passed and once the will is settled my brother/myself will own half the property each....should I be paying him rent in the meantime? Or would taking over all the costs of running the house be more realistic? At the moment the household bills are being paid from my Mum's account.

I'm curious as to what's a fair arrangement in this scenario and how other people handle it when one sibling lives in the property whilst it goes through probate.
 
There is certainly no hard and fast rule.

If you pay him rent, he will pay tax, PRSI and USC on the rent at his marginal rate. I doubt if your mother would have wanted that.

Does he want to register as a landlord with the PRTB? (He might not have to if it's a family member.)

Assuming the probate doesn't take more than a few months, most people would ignore the rent.

Brendan
 
+1 the preceding post.

As long as relations remain good there should not be a practical problem. However, if matters ever turn sour you would not believe the kind of internecine warfare that can erupt, especially if there is an in-law in the background with mischievous propensities.

Strictly speaking, you are both the joint owners of the property. As there are only two of you the situation is really one of equal ownership. Therefore, you are both equally responsible for the costs of running or maintaining the "asset" in question. There may be an equitable argument therefore that you pay rent or at least reflect your benefit of occupancy in how you split the costs.

In short, the sooner you buy out your brother the easier it is to avoid later complications. Whether or not it suits you both at this time is, of course, another question.
 
GlenGlasker said:
I'm curious as to what's a fair arrangement in this scenario and how other people handle it when one sibling lives in the property whilst it goes through probate.
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If I was your brother I would have no problem with you living there rent free in this scenario.

I think it would be fair for you to pay the running costs, while living there rent free.
 
Speaking of in-laws...it's his partner that is making rumblings about me living here 'for nothing'.....hence me asking the question. Relations are good for now but I suspect that won't last once she pops her oar in.
 
GlenGlasker said:
Speaking of in-laws...it's his partner that is making rumblings about me living here 'for nothing'.....
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Is there any reason to think probate might be delayed ?

Do you have or can you definitely get the funds to buy your brothers half ?
 
Speaking of in-laws was the partner making rumblings when you gave up your own life to care for your mother, or would she have preferred to pay a carer? I imagine she had faded quietly into the background then.
While relations are still good perhaps it's best to ignore any comments and hope there no delays in getting things finalized.
 
GlenGlasker said:
Speaking of in-laws...it's his partner that is making rumblings about me living here 'for nothing'.....hence me asking the question. Relations are good for now but I suspect that won't last once she pops her oar in.
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No surprise there Ted :rolleyes:.

Rhetorical question - when probate issues what are your intentions in relation to the title of the property ? Even if you do not register it in both of your names there may well be a presumed equitable and equal ownership as between the two of you anyway. Who will pay the property tax ? How do you propose to insure the property ? Who will be liable for the various random expenses like a property repair ?

In short, if you intend to remain in the property for the time being - and you are not buying out your brother's interest for the time being - it would seem sensible to make some kind of formal agreement with your brother about the various issues arising, and that will arise, when probate issues. A written agreement would be ideal to put any issues beyond doubt. Foresee the scenario where your brother might die. How exactly would you establish what was agreed if the partner cuts up rough and becomes amnesiac about inconvenient details ?.
 
DirectDevil said:
N...it would seem sensible to make some kind of formal agreement with your brother about the various issues arising, and that will arise, when probate issues. A written agreement would be ideal to put any issues beyond doubt. Foresee the scenario where your brother might die. How exactly would you establish what was agreed if the partner cuts up rough and becomes amnesiac about inconvenient details ?.
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That would seem excellent advice.
 
Black Sheep said:
Speaking of in-laws was the partner making rumblings when you gave up your own life to care for your mother, or would she have preferred to pay a carer? I imagine she had faded quietly into the background then.
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No she was strangely silent (and absent!) then as tends to be the case so often...every family has one right?

@DirectDevil are you talking about something involving a solicitor or just something we write between ourselves? Honestly I hadn't thought about how the Title would transfer - I thought it was just a bridge we'd cross when we got there. I read a lot of threads about families inheriting houses and having one sibling live in it so was hoping to hear what has (and hasn't) worked for people.
 
As soon as the affairs are settled and it's in a position to be sold/transferred to me. I'd do it today but for the issues of probate etc.
 
GlenGlasker said:
No she was strangely silent (and absent!) then as tends to be the case so often...every family has one right?

@DirectDevil are you talking about something involving a solicitor or just something we write between ourselves? Honestly I hadn't thought about how the Title would transfer - I thought it was just a bridge we'd cross when we got there. I read a lot of threads about families inheriting houses and having one sibling live in it so was hoping to hear what has (and hasn't) worked for people.
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Yes. If you have it written by a solicitor it should put potential disputes beyond argument. There are potential difficulties if one party drafts the agreement and it contains any ambiguity.
 
Absolutely use a solicitor, daft not to.

Frame it as you not wanting legal bull damaging your relationship, that always goes down well.
 
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