Will we be penalized for buying mother a house?

Miss_kitty_3

Hi. My mother in law has never had much money. In order to get her on the property ladder her son put down a deposit for her some years ago. We would now like to move her to a better flat, so this is the plan. When she dies she would like to leave her estate to one of her daughters. When her flat sells and her son is repaid, there will be approx £40thousand. We would like to put £80 thousand towards a property worth £120 thousand, with the remaining share being owned by the daughter who will inherit using the proceeds from the first flat. The plan is that the property will not be in the mothers name in case she goes into care. How do we ensure we are doing the right thing? All children involved also pay her a monthly allowance as she has a very low income.

John_Pierpoint

It is a gamble isn't it.
Put the property into mum's name and get her to write a will, As long as she does not leave it to the local cat's home you should be able to adjust the will after she has gone provide you can agree amongst the beneficiaries.
Pros: The property will be free of Capital Gains Tax and presumably still in the nil rate band for Inheritance Tax as part of mum's estate.
Cons: If mum does really need 24/7 care before she goes the family might need to rally round with time and money to provide it cheaper than the local authority. Risk is about 1 in 4?

Trying to have it both ways is difficult.

Perhaps someone with experience will be along with suggestions about part ownership, mum living in a granny flat, trust ideas?