Mum gives me her house, how to deal with care costs later on
Discussion
mph1977 said:
Jockman said:
Sheepshanks said:
Jockman said:
In reality many families take the council contribution and add their own contribution to it.
When you say "many" - is there any way of quantifying that, even in percentage terms?It strikes me that very few families eligible for the council to pick up the tab, would be the sort of families able to afford the uplift from the council rates to that of a good quality private home.
The council contribution (IIRC in the £500/wk range) to the typical decent private home cost (more like a £1000/wk) for, potentially, many years. My Mum has been in a couple of homes for coming up to 10yrs now.
As for % I could not say. The people I know or deal with tend to be richer than their parents.
When I was running Sheltered Schemes (different kettle of fish) the amount of self-funders was in the region of 25% with the rest on state support.
Eric Mc said:
Also, HMRC may insist that the new "owner" of the property pay Income Tax on the deemed market value of rent they would be getting on the property if let on the open market.
Isn't there a sort of benefit-in-kind tax that the mother could have to pay based on the market rent they're not paying?Also the sons should pay for insurance, maintenance etc.
It seems in practice that people just go-ahead and do the transfer that the OP is talking about and in the process keep hundreds of thousands of pounds. While other people get their knickers in twist and do nothing.
Presume I will get roasted in here.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
Du1point8 said:
Presume I will get roasted in here.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
Ah the old champagne socialist labour supporter.I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
I reckon I have paid enough into the government too.
Sadly they disagree.
As from my earlier posts though - if it's legal, it's legal - no one needs to pay more than they should. Just obey the rules.
(Trying to justify it because you have "paid enough" is pretty lame though, no offence!)
Du1point8 said:
Presume I will get roasted in here.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
Everyone is entitled to make their decision but all I would say is IF your parents need care they may well wish they had a few quid to be able to have a choice of care homes. It sounds like your parents could well have a substantial estate so that leaves them in a different situation to the OP.I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
When my father died (At 66 and after only a short illness) my mum became ill and had to go into a care home. She was paying $$$$ and it wasn't great. The local authority homes were a good league or two below.
The OP will also lose the flexibility to choose to go into paid care as they won't be able to afford it. Local authorities are very very selective with what they pay for now and are quite happy to let old people wallow in piss and s
t at home for a day before the home help calls.Jockman said:
mph1977 said:
the tax payer does not pay ' for the majority' anyway ...
Who does?I would guess that varies regionally - as I said earlier on her and another lady pay in the home she's in, out of 25 residents, in the North-West.
desolate said:
The local authority homes were a good league or two below.
A couple of people have alluded to this - do LA homes still exist in any number?As I understand it, most LA's put people in the same homes they'd go to if paying themselves - it's just that they pay less, and that's what's causing care homes to be in financial difficulty.
desolate said:
Du1point8 said:
Presume I will get roasted in here.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
Everyone is entitled to make their decision but all I would say is IF your parents need care they may well wish they had a few quid to be able to have a choice of care homes. It sounds like your parents could well have a substantial estate so that leaves them in a different situation to the OP.I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
When my father died (At 66 and after only a short illness) my mum became ill and had to go into a care home. She was paying $$$$ and it wasn't great. The local authority homes were a good league or two below.
The OP will also lose the flexibility to choose to go into paid care as they won't be able to afford it. Local authorities are very very selective with what they pay for now and are quite happy to let old people wallow in piss and s
t at home for a day before the home help calls.rsbmw said:
God forbid anyone would have to pay for themselves from their own assets/money, rather than hiding it and having Joe Taxpayer foot the bill.
Or:God forbid that anyone can make a sensible financial investment (i.e a house) and pass it on to their children without having to forfeit it to cover care that they have already paid for, having paid taxes all their lives.
Imagine if you were 80 years old and needed a heart bypass. You rock up to the hospital, to be told that you need to sell your house or other large value possessions to pay for it.
Same principle in being forced to sell your home to cover care costs in old age.
Sheepshanks said:
A couple of people have alluded to this - do LA homes still exist in any number?
As I understand it, most LA's put people in the same homes they'd go to if paying themselves - it's just that they pay less, and that's what's causing care homes to be in financial difficulty.
To an extent that is true but there are also ones who will not take patients for the amount the LA will pay.As I understand it, most LA's put people in the same homes they'd go to if paying themselves - it's just that they pay less, and that's what's causing care homes to be in financial difficulty.
Muzzer79 said:
rsbmw said:
God forbid anyone would have to pay for themselves from their own assets/money, rather than hiding it and having Joe Taxpayer foot the bill.
Or:God forbid that anyone can make a sensible financial investment (i.e a house) and pass it on to their children without having to forfeit it to cover care that they have already paid for, having paid taxes all their lives.
Imagine if you were 80 years old and needed a heart bypass. You rock up to the hospital, to be told that you need to sell your house or other large value possessions to pay for it.
Same principle in being forced to sell your home to cover care costs in old age.
Someone has to pay the nursing home. If you want to be able to inherit a house in the circumstances you describe, you're expecting the tax payer to pay for your inheritance.
Having been through this my advice to OP is just get on with it. Sooner rather than later. The assets are the family's and you can do whatever you wish with them. On the assumption you have a good relationship with your mother and are hardly likely to make her homeless then you need to proceed with the knowledge that the worst case scenario won't be any worse than it would have been all round and probably a lot better!
rsbmw said:
V6Pushfit said:
What so someone who was worked bloody hard all their life can have their assets dipped into and depleted in their final years as against someone who has been on benefits all their life who gets it funded? Get real.
What would OP's mother want? She's got to be happy with this and she is, I would be happy with my son to have an Aston on me at the end.
Yes, why wouldn't you be liable to pay for yourself when you can afford it? Not wanting to is not a valid argument. Whilst it's vague and difficult to prove, it's clear this isn't something that is "allowed".What would OP's mother want? She's got to be happy with this and she is, I would be happy with my son to have an Aston on me at the end.
Du1point8 said:
Presume I will get roasted in here.
I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
You & me both I have done the similar, parents property in trust done via solicitor that says its legal (some guarantee placed just in case), however it was done 7 years ago and my folks are still in good health and the reason they did it was simply they reckon they have paid enough into the government, in fact way more than they can ever expect back and want to secure inheritance.
For anyone who complains, my father has paid something like 10 times the normal amount of tax, etc... they don't see why they should be made to sell up if ill at the end of it when some free loader who has paid nothing gets the same care. This from a Labour supporter.
Their decision, not mine I might add.
My parents house was also written into Trust by their Solicitors to protect it from IHT and Care Home fees.
In the end, it wasn't needed, as my brother Nursed my Father at home after Mum died, until his death.
Eric Mc said:
Actually, you CAN'T do anything you like with such assets.
In UK law there is no concept of "family" ownership. Assets are owned by individuals or groups of individuals.
At the moment this asset is owned by one individual - not some hypothetical "family".
Another load of bIn UK law there is no concept of "family" ownership. Assets are owned by individuals or groups of individuals.
At the moment this asset is owned by one individual - not some hypothetical "family".
ks you know exactly what I meant.What would YOU do then ?
I can guarantee squirrel everything away
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