Liferent - Scotland

[Ernie2014]

Hi I was hoping that someone could clear up a couple of questions that I have regarding liferent of a property.

My step father recently passed away and left his half of the property he and my mother lived in to their 4 children but gave my mother a "liferent" in the property. My questions are:
What happens if the property is sold and another purchased with some of proceeds. How is the balance distributed eg if house sold for £250k, and new one bought for £150k, does the balance of £100k go:

1. all to 4 children, if so presumably they only have a £25k interest in new property, or
2. is shared £50k to mother, and £50k shared by 4 children, giving them a 50% (£75k) interest in new property

Or are both above wrong?

If property is sold and mother moves into rented accommodation, would the 50% of proceeds of sale of property go directly to 4 children? or could mother use all proceeds to pay her rent?

Also are there any circumstances whereby the children could force mother to sell the house - this is a highly unlikely scenario as none of 4 children have any desire to do this, but just want to be able to ease any concerns my mother may have.

Property and family are all in Scotland.

For clarity I am not a beneficiary in either step-father's will or my mother's (agreed a long time ago and am happy with that) but wanted to be able to explain as best I can to my mother.

Apologies if I have any of the terminology wrong, but hope there is someone who can assist.

[enaid]

Re: Liferent - Scotland

Hi and welcome,
Just to let you know as this is Scottish law you may not get a rapid response or indeed a satisfactory response at all to your question.
Someone will probably pop along now and prove me wrong, I do hope so for your sake, just letting you know before you go thinking you are being ignored.
Enaid x

[Openlaw15]

Re: Liferent - Scotland

Hi I was hoping that someone could clear up a couple of questions that I have regarding liferent of a property.

My step father recently passed away and left his half of the property he and my mother lived in to their 4 children but gave my mother a "liferent" in the property. My questions are:
What happens if the property is sold and another purchased with some of proceeds. How is the balance distributed eg if house sold for £250k, and new one bought for £150k, does the balance of £100k go:

1. all to 4 children, if so presumably they only have a £25k interest in new property, or
2. is shared £50k to mother, and £50k shared by 4 children, giving them a 50% (£75k) interest in new property

Or are both above wrong?

If property is sold and mother moves into rented accommodation, would the 50% of proceeds of sale of property go directly to 4 children? or could mother use all proceeds to pay her rent?

Also are there any circumstances whereby the children could force mother to sell the house - this is a highly unlikely scenario as none of 4 children have any desire to do this, but just want to be able to ease any concerns my mother may have.

Property and family are all in Scotland.

For clarity I am not a beneficiary in either step-father's will or my mother's (agreed a long time ago and am happy with that) but wanted to be able to explain as best I can to my mother.

Apologies if I have any of the terminology wrong, but hope there is someone who can assist.

I think the Scottish property 'life rent' is the same as the property 'life interest' in England and Wales. It just depends on what the Will says about your step-father's intent for any gifts. Property interests when passing though a Will could be 'for life' and 'remainder. If 50% of the property is held as a life interest for his spouse, your mother then she has that right for entire life. The 4 children may have 'remainder' interests meaning they have no rights to the property itself unless the mother dies, and or may be entitled to any income from the estate's property but not the estate itself. Mother can choose to sell her 50% of the property. There may also be a trust for the children it just depends on the terms of the Will. The property may even be held on trust for the children which means they may be able to ask the court for an order of sale. This is the law in England anyway, but am not sure whether it's the same in Scotland. Do you have a copy of the Will so we can look at it to see the specifics?