Dad signing over his house to me and my sister to avoid selling it if he is ill.
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Dad signing over his house to me and my sister to avoid selling it if he is ill.
Hi,
My dad is getting on a bit but is in good health. He owns his own home. Can he sign it over (or sell it for a nominal fee) to me and my sister so that if he has to go into a home at some time he doesn't have to sell it.
I'd like to think he can trust us.
How do we go about it.
I understand there is a time period from signing it over to the time he may have to go in a home.
Any tips or advice.
My dad is getting on a bit but is in good health. He owns his own home. Can he sign it over (or sell it for a nominal fee) to me and my sister so that if he has to go into a home at some time he doesn't have to sell it.
I'd like to think he can trust us.
How do we go about it.
I understand there is a time period from signing it over to the time he may have to go in a home.
Any tips or advice.
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Its only to stop the state getting it if he needs long term care.
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"Giving your home away and continuing to live in it
You can continue to live in your home as your primary residence after giving it away, provided you pay a market rent to the new owner. Bear in mind that the new owner may have to pay Income Tax on the rent you pay them.
If you don't pay a market rent, the gift will be considered a 'gift with reservation of benefit' and the house may be subject to Inheritance Tax."
Like I said.
#14
We had a similar situation a few years ago, we chose to pay the capital gains tax, was about £5k on a £150k house. This saves any problem with rent / inheritance tax ect.
Definitely see a solicitor about it as there are a few different things you can do.
Definitely see a solicitor about it as there are a few different things you can do.
#15
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Best get and see a proffesional.
My mum owns two properties, one left to her by her mother and beleive me it's not cheap. The second property is costing her a lot more than she expected.
I can see why you are thinking about this though.
When my grandmother became ill she was told that because she owned her own home, she would have to sell it in order to pay for any medical help eg, meals on wheels or home help. Yet, if she lived across the road in the council houses she would get it all free.
It really saddens me that pensioners are put in that situation.
My mum owns two properties, one left to her by her mother and beleive me it's not cheap. The second property is costing her a lot more than she expected.
I can see why you are thinking about this though.
When my grandmother became ill she was told that because she owned her own home, she would have to sell it in order to pay for any medical help eg, meals on wheels or home help. Yet, if she lived across the road in the council houses she would get it all free.
It really saddens me that pensioners are put in that situation.
#17
If you have assets worth more than £23,000 you have to pay for care. We had to sell my mum's house to pay for her full-time care (Alzheimer's).You need proper advice from a solicitor.
One other thing.......if possible, get your dad to give you Lasting Power of Attorney. If the worst happens and he gets dementia, you can deal with his finances without having to go through the Court of Protection. It doesn't have to come into force until he becomes incapable, but it DOES have to be done whilst he's still compos mentis.
One other thing.......if possible, get your dad to give you Lasting Power of Attorney. If the worst happens and he gets dementia, you can deal with his finances without having to go through the Court of Protection. It doesn't have to come into force until he becomes incapable, but it DOES have to be done whilst he's still compos mentis.
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It's good that you are thinking ahead like his. But, as said, professional advice is essential (I'm sure you know that). A phone call to Age Conern or Help the Aged may be worthwhile as they know the ropes.
But bear in mind that you seem just to be thinking that he may end up in a state home which can be pretty miserable and you may find that you want him in private care. I'm not sure if state will contribute to private care fees?
My f-i-l paid privately for an Abbeyfield room and fantastic place at very reasonable rate.
Also worth considering Equity Release to give him some cash to see what Care Insurance options are available. But probably expensive if he is healthy now.
dl
But bear in mind that you seem just to be thinking that he may end up in a state home which can be pretty miserable and you may find that you want him in private care. I'm not sure if state will contribute to private care fees?
My f-i-l paid privately for an Abbeyfield room and fantastic place at very reasonable rate.
Also worth considering Equity Release to give him some cash to see what Care Insurance options are available. But probably expensive if he is healthy now.
dl
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Why is it people are happy to put their parents in a home? Surely you should look after them - u owe them this at the very least?
If there's one thing the British culture could learn from the Indian/Pakistani culture its this
I am amazed that there are people in this country to extend better care towards their pets than their parents!
BTW - not having a pop at the OP - just making a general point
If there's one thing the British culture could learn from the Indian/Pakistani culture its this
I am amazed that there are people in this country to extend better care towards their pets than their parents!
BTW - not having a pop at the OP - just making a general point
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If there's one thing the British culture could learn from the Indian/Pakistani culture its this
Spanish are the same. Any aftercare/rehab is expected to be done by the family. The health authority is only concerened in treating the ailment, everything else is left to the famaily to sort out.
The problem is British work mentality, every household memeber is expected by the goverenment to work 'til they drop, inorder to live an "average" lifestyle. Leaving little time to devote for anything else; like looking after ill/aging family members.
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As the person gifting the property would be responsible for any Capital gains tax, if this is his only property and sole residence then surely there wouldn't be any to pay?
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Also there are issue with any care home charges made on the property should his dad go into care.
There are some important hoops that need to be jumped through to keep in the clear; The government is wise to ill/aging people gifting homes to avoid care home fees. You need to tread VERY carefully here.
Last edited by ALi-B; 07 January 2011 at 11:54 AM.
#26
It's good that you are thinking ahead like his. But, as said, professional advice is essential (I'm sure you know that). A phone call to Age Conern or Help the Aged may be worthwhile as they know the ropes.
But bear in mind that you seem just to be thinking that he may end up in a state home which can be pretty miserable and you may find that you want him in private care. I'm not sure if state will contribute to private care fees?
My f-i-l paid privately for an Abbeyfield room and fantastic place at very reasonable rate.
Also worth considering Equity Release to give him some cash to see what Care Insurance options are available. But probably expensive if he is healthy now.
dl
But bear in mind that you seem just to be thinking that he may end up in a state home which can be pretty miserable and you may find that you want him in private care. I'm not sure if state will contribute to private care fees?
My f-i-l paid privately for an Abbeyfield room and fantastic place at very reasonable rate.
Also worth considering Equity Release to give him some cash to see what Care Insurance options are available. But probably expensive if he is healthy now.
dl
The state will only contribute towards 'Nursing Care' (if someone needs supervision for medication/eating/incontinence), or if the person is practically dead (NHS Continuing Care Funding).
The sale of my mum's house is funding her care at the cost of £700 per week. She gets just over a £100 a week paid for by the NHS for Nursing Care. We had her assessed for Continuing Care Funding, and she was turned down, but at least she will now be 'in the loop' and will be assessed annually. So......if/when she deteriorates further, there will be more chance of her getting it.
As for the Equity Release........my parents did this about 8 years ago, and we only found out just before my dad died. They had borrowed £46,000. Because my mum had Alzheimer's and had to go into care, we only had 6 months to pay it off (luckily we had Power of Attorney, and by some miracle the sale of her house went through without a hitch within 2 months!). We had to pay off the outstanding amount of £50,000. If she'd died, we would have had (I think it was) 18 months.
Bottom line.......do some research. I would hate anyone to have to go through what we have in the last 11 months. A steep learning curve. And there are so many 'grey areas'!
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2. If he doesn't own his home and has no other significant assets then he will end up in a state home. Maybe thats not what he wants. The money you spent on CGT could have provided a better standard of private care.
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My mum ran a nursing home, the state funded patients got exactly the same as the private funded - no difference in rooms, food, care etc.
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#30
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Is your father a member of Saga - I am sure they could recommend someone. There are also people on here who specialise in IHT and CGT.