inheriting a house!!

schofield8883

ok so we are due to inherite my oh grandads bungalow when he passes (touch wood not for another 10+ years but he is doing well at 90!) can anyone tell me the costs involved with inheriting a bungalow no idea of value but approx £130000?
Also as my oh grandad is getting older he is getting more illnesses and forgetful and although he never wants to he might have to go into a carehouse at some stage. Im sure i read somewhere that they make you sell your house to pay for this before giving you free help? Is there a way of 'buying' it off him so that he doesnt have to do this before the time comes? What is the best way for us to still get the house but for him to get the best care?

Im totally new to house buying/selling/inheriting but suggestions are always welcome

pjran

I suggest you visit a solicitor while they are running Wills Aid http://www.willaid.org.uk/
It will cost you a price of a donation and put your minds at rest.

RAS

if you buy the bunglaow for £130,000 and he has to go into care, they will deduct his care home fees from the money you give him.

if he gives you the bungalow and continues to live there until he goes into a care home, they will ask him where the money is that he should have recieved from you.

They will then assess him as if he still owns the bungalow. it is called deprivation of assets.

ognum

schofield8883 wrote: »

ok so we are due to inherite my oh grandads bungalow when he passes (touch wood not for another 10+ years but he is doing well at 90!) can anyone tell me the costs involved with inheriting a bungalow no idea of value but approx £130000?
Also as my oh grandad is getting older he is getting more illnesses and forgetful and although he never wants to he might have to go into a carehouse at some stage. Im sure i read somewhere that they make you sell your house to pay for this before giving you free help? Is there a way of 'buying' it off him so that he doesnt have to do this before the time comes? What is the best way for us to still get the house but for him to get the best care?

Im totally new to house buying/selling/inheriting but suggestions are always welcome

I hope your grandad lives a long happy and healthy life

There are a few questions about his other assets apart from his home Does he have any? Money in the bank or shares etc

There is no way you can buy is house without a transfer of the full market rate and him moving out If you pay him for the house he will have the money for his care home I am sure you would not want to do anything dishonest

He will always be demened to have his home and it will be used to pay for any care he needs Of course he can use the money and other assetts he has first but if that runs out then his house will have to be sold

Of course when he is more frail you could consider moving in and looking after him and that way he and you will keep the home

If his assets are above inheretence tax levels on his death the property may have to be sold to pay this

sonastin

Costs involved in dealing with the estate of someone who has died vary depending on a number of factors:
how much the estate is worth (not just the house but everything: cash, cars, insurance policies, etc) - Inheritance tax might be payable
whether you are the executor and want to carry out the probate stuff yourself or get a solicitor in to do it - if the executor is a solicitor, his fees will come out of the estate but that means less for the beneficiaries to inherit. I think its the same if you hire a solicitor to assist if you are the executor but on the two occasions I've been involved, we've done it ourselves.
Whether the government changes the probate fees / IHT thresholds and rates / any other fees, taxes or charges between now and when your OH's grandad finally gives up.
Plus estate agent fees and solicitors fees for the sale of the house once all the probate side of things is sorted.

If you purchase your OH's grandads house at fair market value and charge him a fair market rent to carry on living in it, you might possibly escape claims of "deprivation of assets" (google it!). Any family discounts will be noted as trying to avoid paying care fees and you/he'll still have to cover the cost of his care. As I understand it, the house will only need to be sold to pay the care charges after he dies but I am open to being corrected on that point.

kingstreet

There are two types of care - one is funded for you, the other you pay for. If he has ongoing medical/nursing needs he may qualify for Continuing Health Care. This is funded by the local PCT.

If his need isn't that severe, he may need care provided by Social Services and this is chargeable according to his financial position. The value of his property will be taken into account and Social Services will take a lien over the property so any owed care fees would be paid when the property is sold. Funding would commence once the notional value of his assets falls to £23,500.

You may have missed the boat with regard to transferring the property out of his name. If sufficient time elapses between the transfer and the need for care a council may ignore the house in establishing his assets. However, it's likely if you transfer it now and he needs care in the next few years, you'll fall foul of the rules for deprivation of assets. This would be the willful removal of an asset from your grandad's ownership purely to avoid care fees.

More here;-

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

If you were to purchase the property from him, you would have to do so at market value, or face the possibility of a similar accusation as above. However, this would merely leave him in the same position with the same value in cash instead of in property. It may be worth taking legal advice from a solicitor in the area in question who has experience of such issues. Some councils are very strict on this issue, others a lot more "understanding."

Yorkie1

I agree with all the others' posts about deprivation of assets.

The other thing which occurs to me from the original post, is the reference to grandfather becoming more forgetful. OP needs to ensure that any decisions are taken by the grandfather while he still has mental capacity.