Does the house count ?

24

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  • TELLIT01
    TELLIT01 Posts: 16,366
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    lisyloo wrote: »

    however surely the best way to get your partnership officially recognised it to get married? Ken Dodd recently married his long term partner and she won't now have to pay inheritance tax.

    Good for Doddy. He managed to keep the tax man at bay right down to his final breath. I'm sure he's up there singing "Happiness" right now. :D
  • Personally I suspect there might be a number of reasons to transfer the property into joint names and both make a will.
  • Danday
    Danday Posts: 436 Forumite
    50Twuncle wrote: »
    If I ever had to go "into a home" and my wife was left, living in our home (Which is in MY name) - would she be expected to sell up to pay for my continued care (after my personal savings had been used up) or does the value of the house get disregarded because she still lives in it ?
    Also - would I be correct in thinking that my wifes personal savings are added to mine to calculate any contribution that I would have to make ?
    A similar question also - should my wife have to go into care ....

    A very good question which certainly must resonate with a lot more people. People of a certain age seemed to arrange their matrimonial financial affairs in this way. The man worked, he paid the mortgage which was in his name so were the deeds. In fact I will go back even further to when a woman was not allowed to have a mortgage!
    Anyhow, I am in a similar position, my wife owns the home we have lived in for many years as a result of a decision I made back when to make sure she had plenty of security. She paid cash for it when houses were as cheap as tents are today!
    I honestly do wonder if they could charge the home if I went in to residential care. It's not my property, never has been. Would be good to get confirmation of this.
  • teddysmum
    teddysmum Posts: 9,471
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    Danday wrote: »
    A very good question which certainly must resonate with a lot more people. People of a certain age seemed to arrange their matrimonial financial affairs in this way. The man worked, he paid the mortgage which was in his name so were the deeds. In fact I will go back even further to when a woman was not allowed to have a mortgage!
    Anyhow, I am in a similar position, my wife owns the home we have lived in for many years as a result of a decision I made back when to make sure she had plenty of security. She paid cash for it when houses were as cheap as tents are today!
    I honestly do wonder if they could charge the home if I went in to residential care. It's not my property, never has been. Would be good to get confirmation of this.
    Our house is in my name and I asked the same question about the house being counted as all mine, leaving my husband nothing,should I go into care. Someone confirmed that the house would be considered as joint (I'd asked if we needed to put it in joint names) and gave a link to Age UK's advice, which confirms this.


    I however, the at home spouse or dependant went into care the house would be considered, half to fund each, but should that person move house, only their half plus a moving allowance is not considered.ie an amount under half the value can be used to pay for the residential care of the first person in care.


    For care, the one in care's income and savings are used until they reach the council help level,then at just over £14k is reached ,the council pays the lot (at the moment, anyway).


    As the person in care's charges are based on their calculated assets(less the house) the person at home will not be charged at a later date, unless they choose to move house (as above).
  • 50Twuncle
    50Twuncle Posts: 10,763
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    Thanks all - what about elderly relatives - if they ever moved in with us - do they consider just their personal savings for financing care or do they look at ours ?
  • lisyloo
    lisyloo Posts: 29,583
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    venison wrote: »
    Personally I suspect there might be a number of reasons to transfer the property into joint names and both make a will.

    A will is a very good idea.
    It's not so straightforward with property.
    Joint has the advantage that if one dies then it passes to the other automatically without going throught the will. My MIL and FIL have everything joint so we won't need probate on first death as everything simply passes.
    With joint tenants you can pass 50% of a home to children on first death.
    This needs a solicitor to explain the pros and cons but one pro is protecting inheritance. I believe a trust is required to protect the survivor in their home. This needs proper legal advice and set up.
    Note that any planning needs to be done in advance.
    You can't give your money away as soon as you know you need a care home (or other state benefits) That's called deliberate deprivation.
  • lisyloo
    lisyloo Posts: 29,583
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    50Twuncle wrote: »
    Thanks all - what about elderly relatives - if they ever moved in with us - do they consider just their personal savings for financing care or do they look at ours ?

    No-one else is expected to fund your care (not even your spouse), so it's only YOUR savings that count (your wifes are not included).
  • Mojisola
    Mojisola Posts: 35,551
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    lisyloo wrote: »
    With joint tenants you can pass 50% of a home to children on first death.

    You can only do this if the property is owned as tenants in common.
  • 50Twuncle
    50Twuncle Posts: 10,763
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    edited 13 March 2018 at 8:42AM
    lisyloo wrote: »
    A will is a very good idea.
    It's not so straightforward with property.
    Joint has the advantage that if one dies then it passes to the other automatically without going throught the will. My MIL and FIL have everything joint so we won't need probate on first death as everything simply passes.
    With joint tenants you can pass 50% of a home to children on first death.
    This needs a solicitor to explain the pros and cons but one pro is protecting inheritance. I believe a trust is required to protect the survivor in their home. This needs proper legal advice and set up.
    Note that any planning needs to be done in advance.
    You can't give your money away as soon as you know you need a care home (or other state benefits) That's called deliberate deprivation.

    We have had wills - for 15 years
    But (and its a big but) - I am disabled and expected to deteriorate in the future - and my wife may not be able to cope with me - so I am just trying to get things straight now - while I still can
    (I am now 54 years old)
  • lisyloo
    lisyloo Posts: 29,583
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    Mojisola wrote: »
    You can only do this if the property is owned as tenants in common.

    Thanks for the correction.
    Joint means it passes to survivor on death without going through estate.
    Tenants in common means you own your bit, so goes through estate/will.
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