Hrmmmm..... Family, funeral and money. That trifecta can split up even the tightest of siblings. Especially when there's a new love who may start putting ideas in your brothers head.
I'd recommend some form of legal agreement (signed by both of you and witnessed by a notary) that points out things like :
- When/If the house is sold, the brothers will split the remains 50:50 (regardless on how long the brother squats there)
- Any improvements your brother makes to the house will or will not affect the split
- If your brother marries, the rules don't change
- If the either of the brothers die, the other brother (and NOT the spouse of the brother) becomes sole owner of the estate.
- If either or you want to put the house up for sale, the other will get the opportunity to purchase it outright at current market value or ($XXXX [predetermined]).
- If the roof/furnace/windows needs replaced, it will be paid for by X
- If the place burns down, and insurance covers it ... The brothers agree to rebuild? or sell?
Etc etc.
To have this all worked out in advance will save a boat load of stress in the event of an emergency.
In Canada, commonlaw occurs at 2 years of cohabitation. So, if you didn't have an agreement at 2 years and something happened to your brother ... his partner would have just as much right to the house as you.
I know, I know ... I took a humorous post and added realism ... but I've seen it happen too many times and couldn't help myself.
Dont worry, I have been thinking all of these things myself. Fortunately, we have an agreement similar to the above which covers most of those points although I don't think the fire/rebuild one is in there.
My main worry is that this new lady doesn't know about the agreement and thinks she might be onto a winner. I know that makes me sound quite callous but I am very wary of that kind of nonsense. And the common law thing. We have a similar law here. I shall be watching closely to see what arises out of it.
Who knows, they might just buy me out and I can be a happy man!
Fingers crossed that it all goes according to your master plan. ;-)
I am sure that one day it will. I had to double check Scots law again there although I did at the time - I feel less antsty now.
Long term plans for the win!