The grandparents may provide after school and holiday childcare. Mum and Dad may need some care themselves. However, these arrangements can be fraught with problems. If everything has been discussed carefully beforehand and properly documented it becomes less likely that families will fall out.
What needs discussion:
- contributions to running costs
- who pays for repairs
- what about the costs of that new bathroom and does it require adapting for a disability
- in whose name is the house. Sounds an easy question but if the grandparents are providing some of the purchase money and the parents need a mortgage what then. If the grandparents want to be owners they will have to be responsible for the mortgage, the mortgage may have to be paid off by the date the grandparents retire making the repayments very large, even getting a mortgage may be a problem.
- what if a grandparent become too ill for the daughter to be able to provide the care
- are the grandparents expected to provide childcare and are the to be paid
- will the daughter be paid for providing care
- what happens when the parents die, if left the house in the Will what about siblings.
- Divorce or need to relocate.
- what if it does not work can one person force the house to be sold and how are the proceeds from the sale to be distributed.
Those are just a few of the points to consider for multigenerational living.
We would recommend that you get legal advice and have your agreements recorded.
If you would like to discuss any matters relating to this article please contact Jean Newton, Partner Private Client or a member of her team on 01905 721600.