Mortgage Deeds Name change

rickcooper_

My father has finally paid off the mortgage and has been advised to add
my brother and I to the deeds.(He's 65,divorced,and lives alone)

This is to protect him from selling his home to pay for residential care in the
future.(Although he's in good health at the moment)

The advisor is a good family friend with no financial background.I would
just like to know if this is correct,if not, what can be done to keep my
fathers house safe to pass on to my brother and I, if his health were to
deteriorate in the future.

Thanks in advance

mdean

Sounds to me like not such a good idea to me. This adviser is basically advising him to gift to the 2 of you I guess 2/3rds of his home

That means he his handing control of his home to others - even in families a bad idea. He is only 65 - you could have 30+ years to fall out

There maybe tax implications.

This all seems to be a in your interest - not your dads-

Not to mention expecting us to pick up care costs thst he has assetts to pay for

silvercar

If for whatever reason he then wanted to sell the property (and you both agreed), you would have a capital gains tax liaibility foryour share of the gain between when you aquired your share and the point of sale.

owey

rickcooper_ wrote:

My father has finally paid off the mortgage and has been advised to add
my brother and I to the deeds.(He's 65,divorced,and lives alone)

This is to protect him from selling his home to pay for residential care in the
future.(Although he's in good health at the moment)

The advisor is a good family friend with no financial background.I would
just like to know if this is correct,if not, what can be done to keep my
fathers house safe to pass on to my brother and I, if his health were to
deteriorate in the future.

Thanks in advance

Sorry I cann't help with your question, but I don't blame you going down a route like this. Your Dad has worked hard for what he would like to pass down to you, and its a crime that they can take it all away to pay for any residential care he might need. You get people that have never wanted to work,which we all pay for,then when they need care we all have to pay for that as well.
Good Luck.

Tahiti

Surely you would then have control over part of the house?

I guess the 7 years rule applies as he would be gifting part of the property, but more importantly for your father, he would lose control of part of his assets.

This is one for a solicitor for proper advice - it just seems a bit risky to me.

maxiscot

Even if your father gifts it to you - if he were living in his house he would be liable for taxation as he would be living in it rent free. You can argue the moral rights or wrongs but surely it is unfair to expect the taxpayer to foot the bill for residential care simply to avoid paying inheritance tax - after all, the children have done nothing to deserve a taxfree windfall except benefit from rising property prices - not rocket science ;-)