HELP-Sister trying to cash in on Dads home

mic200202

Thats why it may be a good idea to look at transferring the property into the family members names now in leiu of the raising capital.Also some form of power of attorney to prevent property being sold in the event of LTC.

getmore4less

The obvious solution is you all give him £2.5k each and keep your shares equal.

If he does not need £10k immediately then a drip feed.

EdInvestor

mic200202 wrote: »

Thats why it may be a good idea to look at transferring the property into the family members names now in leiu of the raising capital.

How would that help the father?He would get no money and lose contol of his property.Furthermore the children would be liable for capital gains tax when they came to sell it. This is very amateurish, bad advice.

Also some form of power of attorney to prevent property being sold in the event of LTC.

Can't be done.Comes under 'voluntary deprivation of assets'. More wrong advice.

getmore4less

mic200202 wrote: »

Thats why it may be a good idea to look at transferring the property into the family members names now in leiu of the raising capital.Also some form of power of attorney to prevent property being sold in the event of LTC.

These transactions can be undone to fund care.

Gorgeous_George

I can't paste the Excel picture so if you want a link, pm me.

Ok, Year 0 is this year and Year 1 is next year and so on.

Your sister would be out of pocket or the other sisters would benefit (assuming 6% capital growth) as soon as:

Year 0: If the house sold for £50K
Year 1: If the house sold for £70K
Year 6: If the house sold for £90K
Year 9: If the house sold for £110K
Year 12: If the house sold for £130K
Year 14: If the house sold for £150K
Year 17: If the house sold for £170K
Year 18: If the house sold for £190K
Year 20: If the house sold for £210K
Year 22: If the house sold for £230K
Year 23: If the house sold for £250K
Year 25: If the house sold for £270K
Year 26: If the house sold for £290K
Year 27: If the house sold for £310K
Year 28: If the house sold for £330K

I guess the key is to estimate how long the old boy is likely to live for. Then guess what the house will sell for at that time. Only then can you determine if the sister will gain.

As pointed out earleir, if the sister offered the same terms as the outsiders, there would be little to moan about. If it was my dad, I'd suggest selling up, living with me and spending up so that there is nothing to worry about other than funeral costs when the inevitable day comes.

GG

gord115

My auntie has offered to lend him 10K and we've suggested 8% to make it worthwhile. Not sure if my dad can just alter his will so she gets it back or will he need a solicitor?

markelock

40% of a house worth how much?

who's guaranteeing the house value?

if I had £10k I wouldn't think twice about giving it to my mum.

firesidemaid

take advice, from CAB or Age Concern.

does your auntie mind if she does not get her money back? if the property has to be sold to fund care, then that could be the case.

have you also ensured that your dad has buildings insurance, just in case anything happened to the house.

mic200202

EdInvestor wrote: »

How would that help the father?He would get no money and lose contol of his property.Furthermore the children would be liable for capital gains tax when they came to sell it. This is very amateurish, bad advice.



Can't be done.Comes under 'voluntary deprivation of assets'. More wrong advice.

Listen my learned friend, keep the 'amateurish' comments to yourself.If you had cared to READ my post you will see I mention that the transfer be done in leiu of capital raising ie the father gets his money either at the time of the transfer or afterwards( by remortgage). Capital gains tax ? oh yeah? well they may get hit with that in the future when they sell up irrespective of whether or not they inherit it.So this is a non point. Losing control of the property? Yes, but this would also have the effect of protecting it from being sold to pay for LTC etc.Power of Attorney CAN be done my friend - for a variety of purposes its a valuable tool to have and use. I was not necessarily advocating its use for disposal of assets as in this case.

Kindly keep the disparaging comments to yourself.

higgey

Hi,

You might find http://www.equity-release-expert.co.uk/ helpful.

Regards,

John.