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Will we have to sell?
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den56
Posts: 6 Forumite
We have a third interest in my mother-in-law's flat, together with my 2 sister-in-laws (although it is still in her name) and have been paying the mortgage for several years. It now looks as though she may have to go into sheltered accommodation or a nursing home. Would she be obliged to sell the flat to pay for her care?
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Comments
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Den56,
You would be better answered if this was posted in the Silver Savers Forum.
You should look into having the tenancy on the property put into a Tenancy in Common, (TIC). It is the normal route taken if you want to avoid charges against the property being claimed due to care fees.
For more info go to Silver Savers Forum, there are a number of threads on this situation. Go into search engine for what a TIC is.
Moderators will move your thread if you ask.
Best of fortune.0 -
You should look into having the tenancy on the property put into a Tenancy in Common, (TIC). It is the normal route taken if you want to avoid charges against the property being claimed due to care fees.
Doing anything now will be seen as deprivation of assets as it's being done to avoid care costs.0 -
Doing anything now will be seen as deprivation of assets as it's being done to avoid care costs.
What does, and doesn't constitute deprivation of assets, isn't straightforward.
If it is viewed that charges are being evaded, then the charges will have to be paid.
If it is viewed that charges have been avoided, they can't be levied.
Den56,
If you go to Silver Savers forum you will find a recent thread entitled
Help please, any appreciated !!!!!!! by Patwinning.
A read of that will give you an insight into possible advantage of TIC, and whether it is appropriate to go down that road.0 -
If it is viewed that charges are being evaded, then the charges will have to be paid.
I would think the fact that they now see it as possible she will go into a nursing home would count as being evaded.It now looks as though she may have to go into sheltered accommodation or a nursing home.0 -
I would think the fact that they now see it as possible she will go into a nursing home would count as being evaded.
The counter point to that, is to put the position that it was just as likely that she wouldn't need to go into care.
You can only evade what you know is going to happen, not what may happen.0 -
It now looks as though she may have to go into sheltered accommodation or a nursing home. Would she be obliged to sell the flat to pay for her care?
There is a big difference between sheltered accommodation and a nursing home.If it is the former (strongly advise you go for this option first, if at all possible ) then she will usually have to pay normal rent for the flat.So you would be able to sell her flat and distribute the proceeds as appropriate to the owners.
Her portion would become her savings and could be invested to generate income to help pay the rent, but if/when it was used up, she would be eligible for housing benefit instead.If she was at that stage, she would have few assets so the LA would fund her care.
If however she went directly into full time care and the property is in her name alone, the council would likely require her to use the residue after any loans were paid off to fund her care as the equity would be regarded as her asset.It's possible there might be an issue of beneficial ownership though, and this would be worth a legal look if it came to that.Trying to keep it simple...
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EdInvestor wrote: »
It's possible there might be an issue of beneficial ownership though, and this would be worth a legal look if it came to that.
Ed,
Have you any advice for Den56, as to whether the fact that they are paying the mortgage would give them a pecuniary claim, the beneficial ownership question is, I suspect, important here.
Den56, can you clarify what your fathers will stipulated re the property. Or did your mother inherit as one of the joint tenants. What is your 1/3rd interest based on. I think it may help with responses.
I'm hoping by now that you have a trip to the C.A.B. in mind.0 -
HTH Case study: The wife of a couple had to go into residential care and the LA funded the placement, the husband remained in the home. The couple owned their home as joint tenants. This was changed to tenants in common after the wife had been in residential care for 6 months. The LA put a charge on the 50% of the property owned by the wife, which was paid when the husband moved into residential care and the property was sold..................
....I'm smiling because I have no idea what's going on ...:)0 -
Errata,
Can you provide a link to this case.
By your reading of the ruling, would the maximum charge the LA be able to put on the property, be limited to 25%, if the 4 of them had a TIC on the property.
Would it be a different scenario to a TIC between husband and wife.0
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