Parents protecting home from care home costs and inheritance
Discussion
Hi
My parents are in tneir 70s and are thinking about tneir property.
They want to ensure they don't lose tneir home if one has to go into a care home.
And also ensure tne entire home gets passed to their children when they die.
I see changing ownership of tne home to tenants in common protects one person if tne other goes into a home.
But how do you protect tne home if one person dies and tne other has to go into a home or is already in a home?
How can their half be protected against care home costs etc?
(Presuming tne one who died first left their half to tne kids)
Tnank you
My parents are in tneir 70s and are thinking about tneir property.
They want to ensure they don't lose tneir home if one has to go into a care home.
And also ensure tne entire home gets passed to their children when they die.
I see changing ownership of tne home to tenants in common protects one person if tne other goes into a home.
But how do you protect tne home if one person dies and tne other has to go into a home or is already in a home?
How can their half be protected against care home costs etc?
(Presuming tne one who died first left their half to tne kids)
Tnank you
Are your n & h keys glued together on your keyboard?
Back to subject when my Dad passed away half the value of the home is in my Mum's name, the other half is in some sort of trust arrangement in mine, my brother's and my mum's names which basically means if my my has to go into care they can't make us sell the home as me and my brother also own a share in it. Likewise we can't force my Mum to move out to get at the money. All three parties have to be in agreement for any change of ownership of the house. Solicitor sorted it all out.
Assuming they've already got a will just go and see a solicitor who deals in this sort of thing with a view to get the will amended / the deeds changed on the house.
Back to subject when my Dad passed away half the value of the home is in my Mum's name, the other half is in some sort of trust arrangement in mine, my brother's and my mum's names which basically means if my my has to go into care they can't make us sell the home as me and my brother also own a share in it. Likewise we can't force my Mum to move out to get at the money. All three parties have to be in agreement for any change of ownership of the house. Solicitor sorted it all out.
Assuming they've already got a will just go and see a solicitor who deals in this sort of thing with a view to get the will amended / the deeds changed on the house.
This depends on which county you're in, but my understanding is that the home will not have to be sold if one of them goes into care. If there are insufficient liquid or realisable funds to pay the (private) care home bill, the Council will take a legal charge on the property instead. When the remaining person has to leave, or dies, the Council will then expect its money PDQ from the sale of the house. But they won't force the remaining resident to leave.
Reagrdless of what is left to whom, the Council will want its slice first - that's a debt for the Estate to pay.
As for putting the property in a different name, or other clever wheezes, cash-strapped Councils are aware of such ruses and disposal of assets in an attempt to avoid care costs gets trampled on fairly swiftly. Councils may be slow and a bit dumb, but they make bad enemies and have unlimited free legal grunt (I only beat mine with a surprise attack from the rear). If you want to see what options may be left, consult an IFA or solicitor who's experienced in inheritance matters - it's worth paying for.
Reagrdless of what is left to whom, the Council will want its slice first - that's a debt for the Estate to pay.
As for putting the property in a different name, or other clever wheezes, cash-strapped Councils are aware of such ruses and disposal of assets in an attempt to avoid care costs gets trampled on fairly swiftly. Councils may be slow and a bit dumb, but they make bad enemies and have unlimited free legal grunt (I only beat mine with a surprise attack from the rear). If you want to see what options may be left, consult an IFA or solicitor who's experienced in inheritance matters - it's worth paying for.
There’s a good article explaining a bit more about this on the Telegraph website:
http://www.telegraph.co.uk/finance/personalfinance...
It's a bit old now but I think that it's still relevant
http://www.telegraph.co.uk/finance/personalfinance...
It's a bit old now but I think that it's still relevant
Put the house in a trust.
When they leave the house sell it and keep the proceeds in the trust.
This method may now be closed as IIRC councils didn't like it.
or
They sell up and buy/rent a small property close to you. You can keep an eye on them. They give you the money from the sale to look after on their behalf. Treat the Grandchildren etc.
When they leave the house sell it and keep the proceeds in the trust.
This method may now be closed as IIRC councils didn't like it.
or
They sell up and buy/rent a small property close to you. You can keep an eye on them. They give you the money from the sale to look after on their behalf. Treat the Grandchildren etc.
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