Selling house for nursing home fees

mry_2

Hello all

I hope I am posting this in the right place. My Dad is 72 and in variable health. It has been suggested that he put his house into my name so that should he have to go into a nursing or care home in the future he won't have to sell the house to pay for the fees, rather they would be covered by the NHS.

Is this a good idea? Has anyone else done the same thing? Any advice gratefully received.

Many thanks, MRY

monkeyspanner

NHS continuing healthcare funding is only provided in case where there is an overiding health need and is extremely difficult to obtain. Financial assistance is more usually provided by the LA and is means tested both in terms of income and capital including the value of the home. There are certain exceptions where the value of the house is disregarded e.g. if a partner still lives there.

Dependant on your Dad's health this could be viewed by the Local Authority as a deliberate deprivation of assets when/if your Dad needed a care home. Dependant on the time between transfer and when a care home is needed different councils take different views on this type of transfer. The LA can go back as far as they like in examining asset transfers and can in some circumstances recover money from the recipient.

For a good guide on care home funding see http://www.counselandcare.org.uk/assets/library/documents/16_Care_home_fees_paying_them_in_England_2009.pdf

There are a number of other reasons why you and more importantly he should consider this move carefully.
- If you do not live in the property any increase in value could be considered for capital gains tax.
- Unlikely, but if you die suddenly and you have not made provision in your will for your Dad then he could end up homeless as your assets including the house will go to the beneficiaries of your will.
- In these uncertain times then you should consider what would happen if you had financial problems.
- The care homes funded by LA contributions can be pretty poor and if the asset of a home was still in his pocession then this might give him more choice as a self-funder. I'm not suggesting you would dump him in an awful care home, I intend no offence.

If your Dad's health is failing you could look at claiming Attendance Allowance (non-means tested) and I would recommend putting a Lasting Power of Attorney in place so you could deal with financial matters on his behalf.

margaretclare

'It has been suggested...' by whom?

This is an idea which is commonly-held, but the facts are: there is a thing called 'deliberate deprivation of assets' and this scuppers the whole scheme. Do a little searching on this site and you'll find reams and reams of words written on this topic.

If your Dad is suffering from an illness which would normally be treated by the NHS then his care should come under the NHS umbrella, but often this doesn't happen. Have a read of other threads on this part of Martin's site.

What does 'in variable health' mean? Many of us who survive into our 70s may be said to be 'in variable health' which can be controlled by modern medication. I've just had fasting bloods taken at our surgery this morning - they demand that I go along there every year 'because we want to keep you healthy'. I have pointed out to those kind people that I don't expect to live for ever!

fredsnail

Would it be possible for you to rent the house out to raise money for him?

That's what we're doing for my Grandad - we've had to redecorate and get some work done - but we're almost complete now :j

Good luck.

fs

margaretclare

Fredsnail, sounds like a good scheme. Especially bearing in mind the fact that houses are just not selling in the present climate - well, not around here anyway. Many more houses are being advertised 'to let' and 'for rent' that you would not have expected a year or two back.

However, I gather the OP's Dad is still living in his house!

I firmly believe that repairs/renovations/upgrades etc should be carried out as and when required or possible. Too many houses one sees, vacated by an older resident, end up needing major work done, and why shouldn't the older person have enjoyed greater comfort and convenience while he/she still lived there? Bathroom improvements are an obvious thought.

mry_2

Thanks everyone. Yes, my Dad is still living in his house and I hope he will be for a very long time. He has mental health issues, for which he takes medication, and we have no idea how this will develop as he gets older. Other than that he is fit so hopefully will have no problems. His mother has just died after 5 years in a nursing home with dementia which was paid for by selling her house - he is just concerned that the same will happen to him and he will have nothing to pass on to me and my brother. This doesn't bother me - I will just want the best care for him - but it bothers him. Thanks for the info about deprivation of assets - I though something like that would be the case. I'll let him know. MRY

MrsE_2

I think my mum may need residential care soon.

She gave a lot of her share of the sale of a jointly owned home to my younger sister, about 6 years ago AND she gave nearly all of the sale of a property solely owned by her to the same sister about 10 years ago.

She now lives in a housing !!! sheltered flat.

Is this going to be seen as deliberate?

There is no chance of getting any back of sister.

EdInvestor

MrsE wrote: »

I think my mum may need residential care soon.

She gave a lot of her share of the sale of a jointly owned home to my younger sister, about 6 years ago AND she gave nearly all of the sale of a property solely owned by her to the same sister about 10 years ago.

She now lives in a housing !!! sheltered flat.

Is this going to be seen as deliberate?

It might be, especially if the most recent gift more or less coincided with the move to sheltered accommodation -anyone needing to do that could be expected to anticipate later needing full time care.

MrsE_2

EdInvestor wrote: »

It might be, especially if the most recent gift more or less coincided with the move to sheltered accommodation -anyone needing to do that could be expected to anticipate later needing full time care.

The most recent one was in drips & drabs, around (before & after) that time.
My mother is a bit vulnerable she has had a brain hemorrhage which has left her with mild epilepsy & suffered TIAs (mini-stokes) since.
Shes not really sharp enough to deal with my sister (IYKWIM), do you think that would be taken into account?

carlislelass

fredsnail wrote: »

Would it be possible for you to rent the house out to raise money for him?

That's what we're doing for my Grandad - we've had to redecorate and get some work done - but we're almost complete now :j

Good luck.

fs

A neighbour has done that. His mum went into a home, he got the builders in..new bathroom/ kitchen/carpets and is renting it out. I always thought if you had property it must be sold?

DiggerUK

MRY,
If you change the deeds on the house to a Tenants in Common (TIC) then it will place it outside seizure.

Wills must be drawn up because unlike a Joint Tenancy (JT) were the surviving JT automatically inherits, TIC's can leave their share to anybody they want.

C.A.B. will give you free advice.


http://www.landregistry.gov.uk/ will send you the forms to fill in, we did it ourselves.

All the best.