Care home costs, wills etc
Discussion
I know this has been done to death, but this might be a little different, also I am not sure where to go for real advice! Also sorry if this is bit rambling, hopefully putting my thoughts down in writing will clarify things a bit!
Firstly it does not directly involve me, more my sister, she is mid 30s has a daughter from previous relationship who lives with the father, sister lives back at home with mum. Mum is not ill, in late 60s loving retirement doing older lady things with her older lady friends ( I am taking mum "back packing" in Sri Lanka next year) so hopefully there won't be any issue any time soon. It is also not an attempt to get round the depravation of capital provisions as mum has no foreseeable need for care.
My sister is a little bit, how can I put this... on the spectrum, she is not stupid or incapable, just she sees things a bit different to a lot of people, she will not deal with things, just pretends they will go away.
My worry is in 10 years time, or when ever, mum needs to go into residential care and my sister is still living at home with an informal arrangement, the council come along and kick her out and sell the house to pay for care. She has also paid mum "board" forever, so sharing in the bills and running costs of the house, it is her home.
My mum does not want to hand over her house to my sister, mum is worried of the potential ramifications if sister falls in love with a Spanish waiter etc. Sister also had a history of being a bit special with money when she was younger... I can completely see mums point.
I would like to be able to point them in the direction of something they could do to protect my sister (and mum) should mum need to go into care. Would Tenancy in Common be the solution? What would happen in that situation if my sister moves out or goes bust?
Mums estate is well beyond IHT threshold.
If anyone has any help or advice I would be most grateful.
Firstly it does not directly involve me, more my sister, she is mid 30s has a daughter from previous relationship who lives with the father, sister lives back at home with mum. Mum is not ill, in late 60s loving retirement doing older lady things with her older lady friends ( I am taking mum "back packing" in Sri Lanka next year) so hopefully there won't be any issue any time soon. It is also not an attempt to get round the depravation of capital provisions as mum has no foreseeable need for care.
My sister is a little bit, how can I put this... on the spectrum, she is not stupid or incapable, just she sees things a bit different to a lot of people, she will not deal with things, just pretends they will go away.
My worry is in 10 years time, or when ever, mum needs to go into residential care and my sister is still living at home with an informal arrangement, the council come along and kick her out and sell the house to pay for care. She has also paid mum "board" forever, so sharing in the bills and running costs of the house, it is her home.
My mum does not want to hand over her house to my sister, mum is worried of the potential ramifications if sister falls in love with a Spanish waiter etc. Sister also had a history of being a bit special with money when she was younger... I can completely see mums point.
I would like to be able to point them in the direction of something they could do to protect my sister (and mum) should mum need to go into care. Would Tenancy in Common be the solution? What would happen in that situation if my sister moves out or goes bust?
Mums estate is well beyond IHT threshold.
If anyone has any help or advice I would be most grateful.
R11ysf said:
Family trust.
Speak to an IHT specialist but essentially your sister can be made a beneficiary without being a trustee and controlling the money.
Aren't trusts super costly to set up and also not the magic billet they once were? I thought HMRC were not keen on them, or is that not right?Speak to an IHT specialist but essentially your sister can be made a beneficiary without being a trustee and controlling the money.
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