7 year rule on gifting property

CLAPTON

TrulyMadly wrote: »

I might have had the energy to reply but have spent the entire day looking after my severely and ridiculously demented father. I tell a lie. I had a one hour break and paid an agency £12.20 plus travelling time while I ran around collecting his medication.
I looked after my Mother (in her own home)who had breast cancer for 2 years up until July 22nd when she died.

I am physically exhausted but not too tired to ask whether they were just Bic pens you nicked or something a bit more fancy. Whatever. I forgive you. Life's too short

I've given you the facts about the question you asked

You seem a very good person

let's agree to differ about other things
each of us have our own reality

RobS77

It wouldn't have worked to save care home fees anyway- would have fallen foul of the deliberate deprivation provisions.

localhero

RobS77 wrote:

It wouldn't have worked to save care home fees anyway- would have fallen foul of the deliberate deprivation provisions.

So what do you think the local authority could have done about the house that has been out of the estate for 7 years?

TrulyMadly

Thank you all so much for your kind and supportive replies.

Just to clear up a few things.
I have never defrauded anyone.
I allowed my mother to die in her own home as was her wish.
I am now looking after my father in his own home as is his wish.

Yes I was feeling sorry for myself yesterday as I'd spent the morning unblocking his toilet. He'd put a yoghurt pot down and then kept flushing the toilet until he flooded the bathroom. Not a pretty sight!
Yes I did make a post about Enduring Power of attorney as my father has now completely forgotton about the wife he was married to for 50 years and is making amorous advances to a lady in the village who is reciprocating.
Before you ask. He is now spending the day at a Dementia Day centre while I have time off - just in case anyone accuses me of neglecting him.

Andy_L

TrulyMadly wrote: »

My parents put their house into my name over 7 years ago.... They have lived in their house without paying us any rent all of this time...
As they have not paid us any rent from the property was the house "properly" gifted.

As they have lived rent free the gift was a "gift with reservations" (ie you couldn't do what you liked with the house) and thus it will count as part of the estate for calculating IHT liability (although form the rest of the thread it sounds like its below the limit anyway)

Assuming you didn't live there as well then you will have no "Primary Personal Residence" exemption and will have to pay CGT on the sale (unless you move in and live there for long enough to make it your residence)

TrulyMadly

Hello Andy L,

Thank you for your clear and non judgemental reply.
I'm quitting while I'm winning!

dzug1

localhero wrote: »

So what do you think the local authority could have done about the house that has been out of the estate for 7 years?

Assessed the fees as if the parents still owned it and put a charge on it to ensure they were eventually paid.

The 7 year limit is only for IHT - not care fees. The limit for them is ill defined to say the least. And OP freely admits it was done to avoid care fees - open and shut case for LA.

localhero

RobS77 wrote:

It wouldn't have worked to save care home fees anyway- would have fallen foul of the deliberate deprivation provisions.

localhero wrote:

So what do you think the local authority could have done about the house that has been out of the estate for 7 years?

dzug1 wrote:

Assessed the fees as if the parents still owned it and put a charge on it to ensure they were eventually paid.

The 7 year limit is only for IHT - not care fees. The limit for them is ill defined to say the least. And you freely admit it was done to avoid care fees - open and shut case for them.

I would be most interested to learn whether RobS77 agrees with you. What do you reckon Rob?

RobS77

localhero wrote: »

So what do you think the local authority could have done about the house that has been out of the estate for 7 years?

If the client had continued to occupy the property they could have gone to court to endeavour to get the transaction set aside: it depends upon the approach of the local authority in each individual case. If it was done to avoid the payment of nursing home fees then it would have been in clear breach of CRAG.

Personally I prefer transferring the property into a discretionary settlement, followed by a resolution permitting the settlor to occupy the same: they have never succeeded in setting one aside which I have been involved in.

RobS77

localhero wrote: »

I would be most interested to learn whether RobS77 agrees with you. What do you reckon Rob?

Where the client continues to occupy the property then they certainly have grounds to set the transaction aside- there is no argument for them doing it on the basis of IHT- as it would qualify as a GROB- so the only reason for the transaction would have been deliberate deprivation. The LA could either bankrupt the client or go to court to have the transaction set aside. I presume you know that such a transaction is in breach of CRAG?