As the first members of their families to buy property, Peter and Angela Andrews could not have been prouder when they bought their three-bedroom detached house in the north of Scotland as newlyweds in 1963.
It turned out to be the perfect family home to raise their daughter, Sally, who was born soon after, and their son Graham, who arrived three years later. Sally and Graham enjoyed a happy childhood and the family remained close when the siblings grew up and left home.
Angela died last year, aged 84, leaving Peter alone in the family home. He had appointed Sally and Graham as joint executors of his estate and left the house and remaining assets in their names. Sally never had any doubt that she and her brother would let their father live in the house and would sell it only when he died.
But although Graham, 53, and his father had always shared a particularly strong bond in the family, after his mother’s death he kicked Peter, 86, out of their home of more than 60 years.
When probate was granted five months after her mother’s death, Sally received the first of several “nasty” phone calls from Graham’s lawyers demanding that her father be evicted.
What followed led to a family dispute that will hardly heal.
“We had a wonderful childhood,” says Sally, 57, who lives just 20 minutes from the family home. ‘There was no bad parenting. My brother and I never had a cross word to say about our parents. I don’t know what changed. He never gave the impression that money was important to him. I’m still trying to figure it out. My father was always good to my brother and his wife. It’s crazy.’
Although Graham and his father had always shared a particularly strong bond in the family, after his mother’s death he kicked Peter, 86, out of their home of more than 60 years (photo taken by models).
Unfortunately, as he was self-employed, Peter was not listed on the title deeds to the house, which was solely in Angela’s name, even though they bought it together. “(Mom) said something about it years ago, but I didn’t think much of it,” Sally says.
“I wanted the security of the house if anything went wrong with Dad’s job.”
However, as a co-owner, Peter paid half of the mortgage each month. He thought this would provide him with some protection, but it turned out that this was not the case.
What could have been clever financial planning on Angela’s part decades ago left Peter vulnerable to the whims of his son, who was determined to get his share of the £270,000 house. Surprisingly, his mortgage contributions meant very little under the law because he needed to prove that he had added value to the house.
Siobhan McGuigan, partner at law firm Anderson Strathern, says: “It would be very difficult to prove financial contributions.” You might have a claim if you could prove it added value to the house, but it could cost a lot of money.’ If Angela had not left a will, Peter would have been in a much better position and would have had an automatic right to inherit part or all of the house. This is because inheritance rules in Scotland differ from those in other parts of the UK.
The law distinguishes between heritable property (land and buildings) and movable property (any other asset).
If there is no will, a spouse or common-law partner can claim “prior rights” to everything, including a family home worth up to £473,000 and the contents of the family property worth up to £29,000. They can also claim a share of the moveable estate of up to £50,000 if there are children and £89,000 if there are no children. However, if there is a will, the above rights are disregarded and the immediate family can claim “legal rights” to the movable estate, independently of the will, which does not include assets.
The lack of legal protection for Peter made Graham’s decision to choose money over family even more damaging for Sally. ‘I know the boy I grew up with. How do you live with yourself? she says.
Sally wanted to take it to court but her solicitor warned her she would likely be out of pocket and thousands of pounds out of pocket. Sally then contacted the Scottish Parliament but was told her elderly father had no guarantees.
Graham demanded that the house be put up for sale immediately, leaving Peter without a house or money to buy a new place. Luckily, Sally’s son had moved out of their house to live with his partner just a few weeks earlier, which meant Peter could move out, but it wasn’t a permanent solution.
“My father is a very independent man and he doesn’t want to live with me,” says Sally. “I was going to raise funds to buy him a house, but it was very difficult to find a suitable one due to his mobility.”
Sally, who runs a small business, would have faced a hefty 6 per cent stamp duty charge when buying a house for her father as it would be considered a second home, and there were complications with buying a house in his name. of Peter.
At 11, local authorities, aware of Peter’s situation, found a one-bedroom apartment for retirees not far from Sally.
‘Someone must have been looking down on him. “Everyone was very relieved after all.”
All names have been changed.
How to Avoid Losing Your Home in a Family Legacy Battle
Peter Andrews’ daughter Sally is unsure what she will do to help her own children, but her devastating experience highlights some difficulties with Scottish tax law.
First, make sure your name appears on the property titles if you jointly own your home.
You could also include a survivorship clause in your will, which would give your spouse or partner an automatic right to inherit the other person’s share of the property. If you ultimately want to pass your home on to your children or other family members once your spouse or partner dies, be sure to describe this in your will.
Siobhan McGuigan, of law firm Anderson Strathern, says she has had cases where the property is in the sole name of one spouse due to financial difficulties. But a provision made in the will meant the surviving spouse could still live there, even if it is in their children’s names. McGuigan says: “With an absolute bequest to the children and no provision for (the survivor), then it passes to the children and no legal rights would attach to the property, only the chattel.”
These distinctive features of Scottish law only apply if the deceased was domiciled (had legal residence) in Scotland. Therefore, if you have a second residence in Scotland but are domiciled in England, English law will apply.
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