A good case for an interest only mortgage?

poppy10_2

maxtor wrote: »

He only needs ~£2500 / year to supplement his care costs).

How did you swing that? Is he still at home or in residential/nursing care?

maxtor

poppy10 wrote: »

How did you swing that? Is he still at home or in residential/nursing care?

He's in a care home, but he has a company pension, old age pension and higher rate attendance allowance to help offset the care home costs

bigbloke45

As you have power of attorney, why not just sell his house right now?

You can then pay off your mortgage and do whatever you like with the rest! If you are the only beneficiary, I'm sure your dad would want you to enjoy his assets now, rather than waiting to the end.

Inheritance tax is not applicable as the value of his home is below the £312,000 limit.

If some of the other posters think this is a bit cruel, let me assure you that I have been there a couple of times and left doing things until the end; it is no better. Act now!

Best of luck!

poppy10_2

bigbloke45 wrote: »

As you have power of attorney, why not just sell his house right now?

You can then pay off your mortgage and do whatever you like with the rest!

Power of attorney does not give you the right to "do what you like" with someone's money - it's a legal document putting you in a position of trust, to act in that person's best interests when they lack capacity. It may well be that the dad would have wanted maxtor to enjoy the money himself, but that would be difficult to prove or justify to the courts if someone raised an objection.

FiscalFanny

For those of you with derogatory replies, when you have a beloved parent with advanced dementia, then you may be in a position to criticise Maxtor...but then again you'd understand how important it is to do things today and not procrastinate until tomorrow as we don't know what awaits us.

Maxtor, good on you, my recently departed mother (suffering in her 7th year of dementia) and 87 year old father are wholeheartedly behind us children practically 'planning' our eventual inheritance. Being practical makes the slow grieving process easier...not the "grab it" approach many see it as.

Fanny

maxtor

FiscalFanny wrote: »

For those of you with derogatory replies, when you have a beloved parent with advanced dementia, then you may be in a position to criticise Maxtor...but then again you'd understand how important it is to do things today and not procrastinate until tomorrow as we don't know what awaits us.

Maxtor, good on you, my recently departed mother (suffering in her 7th year of dementia) and 87 year old father are wholeheartedly behind us children practically 'planning' our eventual inheritance. Being practical makes the slow grieving process easier...not the "grab it" approach many see it as.

Fanny

Thanks Fanny - my mother passed away in May this year and she also suffered from dementia.

As noted previously EPA does not give me the right to spend my fathers money - it is still legaly his, I am just managing it for him.

I would be the one getting the interest only loan and taking the financial risk, however as far as I can tell the financial risk is very small indeed, in fact no one has come up with any real way that I could get into financial difficulty with this arrangement so far.

Gorgeous_George

bigbloke45 wrote: »

...Inheritance tax is not applicable as the value of his home is below the £312,000 limit...

There are more assets than houses, believe it or not.

GG