We Don’t Care about Inheritance

Hi Barefoot,

My mum wants to subdivide her valuable block (worth about $1 million) and build a multi-generational home for herself and my family. Emotionally this would be good for all of us. Problem is, she will not talk about money and I know I cannot offer anything like market value on the property. At the most I could offer $130k plus $300 per week. Mum wants us to be tenants in common. My siblings won’t argue because we don’t care about inheritance. Please, Barefoot, tell my mum how to protect her interests.

Jane

Hi Jane,

The ability to balls this up is big, so keep it simple. Have your mum subdivide the block and use the profit to built the new home, with you paying rent. The family home is exempt from Centrelink assessment, and any rent she receives from family members doesn’t count as income, so it won’t affect her rate of age pension. Then you can invest your $130k and potentially buy your own home down the track.

Scott