If mum has to go into care, what's to stop her renting her property out and using that income to pay for care, topped up if necessary from savings, pension, family etc.? Alternatively, give to family now, survive 7 years, and family pay care home bill in due course.
Anything illegal,unethical,improper about that?
Taking Option 2 where does she live for the 7 years? It doesn't work if she lives in her own house(the one she gave away) unless she pays them a market rent - on which they will pay income tax.
When she dies they will be stung for Capital Gains Tax.
But what about option 1 - surely that's ok and saves the old lady selling her home and using up the capital??
This doesn't sound to me like a job for someone in residential care, so it would have to be managed by a family member.
If there is a willing volunteer who can manage it and has the time then all well and good, but remeber to reduce the income by tax and any agents fees and include a decent reserve for repairs etc.
Agreed. Good points. But at least it's an option, and if the family benefit in the long run, should be worth considering
It is too easy for a thread like this to widen. I would simply say that I would hope that factors, other than finance, will determine how my final days are spent.
However surely the best financial option, if avoiding nursing home costs are the major consideration, is for her children to look after her in the latter stages of her life; at their house or hers.
There is plenty of help available for this – either provided by the State or paid for privately.
However surely the best financial option, if avoiding nursing home costs are the major consideration.
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