Buying mothers house

angiesavemoney

my mother bought her house from the local authority 8 years ago as an investment for her children, she has a mortgage which my 3 brothers and myself pay, there is now only 2 years left on the mortgage. Our mother and us all are now concerned that should my mother need to go into a home that the house would have to be sold to pay for her care, she is currently 67 years old.

any advice.

BitterAndTwisted

If your mother intentionally impoverishes herself to avoid financing future health-care needs local authorities take a very dim view of this and operate as if your mother still has possession of the asset disposed of. Do not consider doing this, please

Running_Horse

She, sorry, you and your brothers, got something for nothing from the state. When she needs care from the state, it seems only right to give something back. Sounds fair to me.

angiesavemoney

We brought the house so that our mother did not have to pay rent and to help her out finacially as she got older she does not get any help from the state as she is just over the threshold for assitance council tax let alone if she would have had to pay rent, she has always worked hard bring up 5 children on her own.

BitterAndTwisted

Also, normal people rarely buy ex-local authority properties at a discount as an investment "for their children". The sorts of scams devised to get round using a capital asset to finance future care-home fees are well-known and there are plenty of devices used to prevent this. Don't forget: they are probably smarter than you because you're not the only scammer to have thought of this

margaretclare

You said originally that your mother bought her local authority house 'as an investment for her children'.

The idea of 'investment for children' was not what the right-to-buy scheme was all about.

Then you said that 'you' bought it for her to help her out so that she didn't have to pay rent.

Two very different aspects of the situation - which is the real one? Both can't be true.

Running_Horse

Well, whatever the case, you and your brothers have been paying the mortgage for nothing. You would have been better off leaving her with security of tenure, and paying the money directly to her. But as you did it for her and not you, then you won't mind the proceeds being used to care for her when she most needs it, will you?

Fire_Fox

angiesavemoney wrote: »

my mother bought her house from the local authority 8 years ago as an investment for her children, she has a mortgage which my 3 brothers and myself pay, there is now only 2 years left on the mortgage. Our mother and us all are now concerned that should my mother need to go into a home that the house would have to be sold to pay for her care, she is currently 67 years old.

any advice.

Setting aside the moral arguments which others have already commented upon, it isn't possible to avoid your mothers home being used to pay for residential care should she require it. Google 'deprivation of capital' for more information.

angiesavemoney

all this was done so that my mother had more money in her pocket in her old age and she could also leave a small inheritance to her children, this was NOT about making big bucks for us.

tanith

A bit more awareness when you first bought the house would of made you all maybe think twice before going ahead, it may of been done with the best intention but is going to come back to bite you all on the bum unfortunately.. there is no way to avoid this now...at least I don't think so.

Fire_Fox

angiesavemoney wrote: »

all this was done so that my mother had more money in her pocket in her old age and she could also leave a small inheritance to her children, this was NOT about making big bucks for us.

Then what is the problem with her paying for residential care? What else is more important to have money in your pocket for than that? Nothing stopping her selling up now and travelling the world with the proceeds whilst she is still young. She is also entitled to make modest tax-free cash gifts to family during her lifetime, see the inland revenue website for further information.