Deprivation of capital & care home costs - latest info?

[schmokin1]

One for the legal eagles amongst us!

Situation:

I am buying a house, mine and the wife's name on the deeds. We are borrowing all the money to purchase it.

In a few months my folks will be selling their house and giving all their children an equal sum, while retaining about 40% of their estate. Some of this remainder will be spent on converting an outbuilding on my new property for their use until they die or need to go into a care home or sheltered accom etc. They will still have a few hundred grand in the bank after giving away some of their money, and they are both in sound health and in mid seventies ie we hope years away from any possible care home requirement

Question:, can the authorities come after me for a share in my property some years later if care home fees exhaust my folks remaining estate? I'm prepared for a bit of a risk of this as the place has a really nice garage!!!!

TIA Schmo

[schmokin1]

OK thanks. So I am right in thinking they can't put a charge on my house 'cos my parents 'improved' a bit of it, but they can take every last penny of my parents' estate for care fees instead of leaving them with a small residual amount...?

Cheers
Schmo

[schmokin1]

Thanks all.

Re all the points above, there's the rub...

They will be giving some, not all money away to their kids. As it stands they are fit and healthy and not that old. It's straightforward for IHT - must be a gift without reservation and they have to survive 7 years for it to fall out of the estate.

But if there is no time limit re care costs, then any financial help they have ever given their kids could then be regarded as trying to dispose of assets. Are the govt saying then, that you aren't allowed to give any money to your kids, ever...?

Anyone had an assessment done by the authorities recently when they were in a similar situation?

Cheers all
Schmo