Mother transfer house to son to avoid scams...

susanturnbull

Hello
I've read a few threads on the forum about parents wanting to transfer their houses to their offspring for a number of reasons, but not this reason so any advice would be gratefully received.

My boyfriend's mother suffers with a brain injury and only in the last few years had we realised that she was falling victim to the circulars and phone calls and giving out bank details and donating to charity... it still goes on but to a lesser extent as we've changed her phone number and sorted out her bank accounts etc.

We are now worried that someone posing as a friend is trying to scam her... we don't want to scare her but we have mentioned it in passing. A much younger man... on benefits... wanting to help with her garden then wanting to set up a business (not an official business of course) run out of her garden... she's bought him a van as she feels she owes him for his hard work in her garden (which he wouldn't accept payment for). I don't want to jump to conclusions but...

She doesn't have a huge amount of savings but she does own her house outright. I could almost bear someone running off with her money but the thought of her losing her house - signing it over, being persuaded to change her will (I'm not sure if she has one) - worries the hell out of me.

We were wondering about transferring the house into my boyfriend's name so then she can live it in even if she has no money etc. He has his own flat/savings etc but I do take the points about what if for some reason he becomes bankrupt etc. Also what happens if his mother needs care - usually her house would be sold to pay for it - which would be fine cos we absolutely do not want her house for ourseves - but I'm not sure if this would affect things being in my boyfriend's name.

Any advice at all would be great. I've no idea where to start - probably with a lasting power of attorney. We'd just feel that if the house was safe then at least we have some control.

Thanks
Susan

princeofpounds

Go get initial consultations with lawyers. They are normally free.

I would suggest that rather than simply transferring the house out of her name (which would deprive her of security) you would probably either want to get power of attorney or put it into a trust where it will be managed for her benefit whilst she is alive.

There are complications to this. You will have to consider inheritance situations, provision of care situations in particular.

kingstreet

Giving the property to a relative might be deemed deprivation of assets if soon after, she requires care which will then need council funding.

Age UK has some good info on this;-

http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

The Inheritance Tax situation may also need consideration. The transfer will not take the property out of her estate for IHT purposes if she continues to derive a benefit by living in it, as she'll fall foul of the "gift with reservation" rules.

Legal advice should be sought on these issues.

On the issue of a Power of Attorney, you don't say if she has capacity. If she does, will she be willing to hand over control of her affairs? Have you actually had a Mental Health Act assessment?

susanturnbull

Thanks both. I will definitely seek legal advice. Absolutely don't want to do anything to get out of paying for care or tax etc, I just want to make sure she has somewhere to live which can't be taken away from her by anyone else.

She has a very poor memory and assertiveness issues. Usually when we visit she tells us the same story a number of times in a few hours... she is registered as having a brain injury - I'm not entirely sure about it being registered officially somewhere but I know she was on disability benefits at one stage as she was finding it impossible to work/remember basic things. She also tends to park her car, forget where she left it and has had a number of parking fines which though understandable, she finds incredibly frustrating. I see her as suffering mild dementia without the aggression.

Trollfever

And from Citizens Advice

http://www.adviceguide.org.uk/index/your_family/family_index_ew/managing_affairs_for_someone_else.htm

Mazzawa

What about registering a percentage of the house in your other half's name? That way the house could not be sold/handed over without your consent so could stop stuff like you suggest happening? Best to speak to a lawyer about this stuff, seems pretty complicated.

Mankysteve

Power of Attorney would probably be the best first way of trying to protect your bf mum. Transferring ownership has lots of legal implications of its own.

casualwalks

In law a person is deemed to have capacity unless steps have been taken to demonstrate otherwise (don't forget people have the legal right to make unwise decisions). The Mental Capacity Act 2005 is very clear that capacity needs to be assessed on a decision by decision basis. Simply having an impairment of the mind or brain is not alone sufficient to prove that the person does not have capacity to manage finances (although it does satisfy stage one of a capacity test). Some useful reading http://www.publicguardian.gov.uk/mca/assessing-capacity.htm

As previously advised, get legal advice.

Keeping_Positive

Have you heard of headways? I have only just heard about them myself but they are a charity who specialise in adults with brain injury. James Cracknell now works / raises funds with them. They might be able to offer some guidance.

PPPingu

It sounds slightly concerning that she is still driving in this condition - is that safe?

marmitequeen

I can so feel for your stress and concern. You need proper legal advice but I can speak very highly of Power of Attorney - or Anthony as he became known in our family when my dad and aunt had this power for their mother. It took so much stress out of a very difficult situation - quite similar to what you describe - and also ensured that bills that needed to be paid and repairs that needed to be done to give my gran the comfort she deserved in her last years were just sorted. Once Anthony joined our family everything became easier. Ok, maybe we didn't need to regard him as a real family member, but it helped with what is a stressful and upsetting time. Go and get legal advice and good luck. x