Which is the best alternative?

Legacy_user

My father is 74 yrs old and living on his own in a 2 storey property. He is still driving but had a major operation 16 months ago which means he is not as active as he once was. He finds it tiring climbing the stairs so sleeps downstairs now.

My brother is currently in the process of separating from his wife and when the finances are settled he will have £100,000 towards a home of his own.

Because of my dad's failing health my brother is considering moving in with him (my dad agrees). So his dilema is what to do with his £100,000.

If he gives it to my dad so that he has part ownership of my dad's house (currently worth £300,000) then obviously my dad has £100,000 which he wouldn't know what to do with and can't give away to my other brother and I in case he needs future specialized nursing care.

If he buys a property of his own with a view to letting it out whilst he lives with my dad will he have to declare the income since that property would in effect be his only property?

linlin_3

If your brother is your only sibling, he could give you his £100,000 and arrange for your dad's house to be in joint names (brother and dad). When the inevitable happens, he will own your dad's house and you and he could have a final settling-up between you. That solution could also solve IHT problems on your dad's estate - provided he continues to live for 7 years after gifting half the house to your brother.