UK Woman Seeks Clarity on Inheritance and Care Home Fees Amid Husband's Will Exclusion

A woman in her 80s is seeking guidance on her financial future as her husband plans to sell their jointly occupied bungalow, leave her nothing in his will, and gift the proceeds to his children. The situation raises complex questions about property rights, inheritance claims, and potential responsibility for future care home fees in England and Wales.

The couple, married for about a decade, live in a bungalow that the husband owns outright, despite the wife's desire to have her name on the deeds. He is reportedly focused on spending his money rather than accumulating it, and his will designates his children as beneficiaries, excluding his wife. He is now considering selling the property to provide funds for his children and move into rented accommodation with his wife.

"My question is if that happens and further down the line he has to go into care, will I be responsible for having to top up any care home fees? Not his children who have already received and probably spent their inheritance?" the wife asked.

Potential Inheritance Claims

Diva Shah, legal director at Kingsley Napley, explained that while individuals are generally free to leave their estates as they wish, surviving spouses who are excluded from a will may have legal recourse. Under the Inheritance (Provision for Family and Dependants) Act 1975, a surviving spouse can bring a claim against the estate for 'reasonable financial provision' if the will does not adequately provide for them. The success of such a claim depends on various factors, including the length of the marriage, the financial needs and resources of all parties, and the size of the estate.

Shah also noted that even if the wife is not on the property deeds, she may have rights if she contributed financially to the purchase or maintenance of the home, or if there was a common intention for the property to be shared. Gathering evidence of any financial contributions could strengthen her claim.

Property Rights and Sale

If the husband is the sole legal and beneficial owner, he can generally sell the property without his wife's consent. However, if the wife can establish a beneficial interest, her rights could impact the sale. As a spouse residing in the matrimonial home, she may also be able to register Home Rights at HM Land Registry, which can help prevent a sale without her knowledge and secure her right to occupy the property during the marriage.

Care Home Fee Liability

Jemma Garside, partner at Kingsley Napley, addressed the issue of care home fees. Local authorities assess individuals for care funding based solely on their own financial circumstances, excluding a spouse's assets, savings, and income. Therefore, the wife would not be personally liable for her husband's care home fees, regardless of her own financial standing.

However, Garside warned of the risk of 'deliberate deprivation of assets'. If the husband sells the property and gifts the proceeds to his children with the intention of avoiding care home fees, the local authority could deem those assets as still belonging to him when assessing his ability to pay for care. In such a scenario, he could be assessed as liable to fund his own care in full, even if he no longer possesses the funds, leaving him in a difficult financial position.

If the husband's pension income is insufficient and he has no remaining assets due to deliberate deprivation, the local authority would cover the shortfall. This obligation would not fall on the wife or the children, provided a deliberate deprivation finding is made by the authority. This situation underscores the importance of seeking legal advice to navigate these complex financial and legal considerations.