Pre-deceasing the Benefactor - What happens to inheritance ?

Discussion in 'Wills, inheritances and gifts' started by redstar, 13 Nov 2018.

  1. redstar

    redstar Frequent Poster

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    My mother lives alone in her home which she jointly owned with my father until he passed away (intestate) in 2009. As I understand it, this means she is the sole owner of the house.

    I am their only child. I am married with two children age 16 and 19. The 19 year old lives in the UK. My mother has one still-living sister.

    My mother has made a will leaving her house to me.

    My question is;
    a. What happens to my inheritance if I pre-decease my mother ? Does it go to my children ?
    b. I am in the process of creating my own will. Should I include any reference to my mothers house while she is still alive, or is it irrelevant to my will ?
    c. Would there be any benefit for my mother to transfer the house to me while she is still alive ?
     
  2. noproblem

    noproblem Frequent Poster

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    If you die before your mother she can do whatever she wants with anything she owns.
     
  3. Bronte

    Bronte Frequent Poster

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    a) If you predecease your mother and her will is not change the house goes to your children (child of a pre deceased child inherits rule)
    b) If your will is leaving evertying to your children then this will include anything you inherit between now and then, because it forms part of your estate - but make sure you discuss this with your solicitor
    c) Your mother should not transfer her house to you and make herself homeless or liable to pressure to move out into a home etc.
    d) if your mother dies intestate, you inherit, and if you're dead, her grandchildren inheirit before your sister, so really if the home is her ownly as
     
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  4. redstar

    redstar Frequent Poster

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    431
    Thanks Bronte !

    In c) she would still live in her home, its just a change of ownership.
    I read somewhere that transferring ownership while still alive instead of waiting for it to be transferred by inheritance is better for tax reasons. I am not sure it is a good idea, so i thought i'd ask here.
     
  5. Andrew Murphy

    Andrew Murphy Registered User

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    39
    If the house is transferred to you and you predecease your mother, would the house need to be sold to settle your tax affairs? If so your mother's tenancy may not be as secure as you think.