I have recently met with a client whose husband has Dementia and is imminently going to move in to care. Property is JT with husband and she wishes to sever the tenancy so that her entire estate (including half share of the property) can go to her son and daughter. Daughter lives with her and is in receipt of benefits.
Usual discussion concerning eligibility for means tested benefits when absolutely entitled, but client less concerned about this and more concerned about daughter being able to live in the property for a while after her death to “get herself on her feet and find somewhere to live.” Client quite dismissive of the “what if” discussions issues RTO/LIT would cause if she were to predecease her husband, but nevertheless, I am conscious that one never knows what is around the corner. I have advised the limitations on either route given she only co-owns the property and the limitations on the protection this would afford daughter if wife died first. However I am wondering whether there would more protection for daughter would be afforded for daughter under LIT for finite period such as five years vs right of occupation for same period?
I’d welcome other views and opinions!