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Help on selling Mother-in-law bungalow
Lori007
Posts: 46 Forumite
Hi - I wonder if anybody could give me some insight on the best way forward.
My MIL went into a home over a year ago due to extremely bad health and being unable to look after herself in any shape or form - we did have carers coming in but they kept forgetting to turn up to put her to bed and on the last occasion she almost died - hence there was extreme haste in getting her into a home. They basically saved her life but since then she has become completely bed-bound and we have been told she is no longer well enough to go home.
We are paying fees of £100 per day and are using her bonds for payment at the moment. We are now looking at putting her bungalow on the market and have started to empty it. In the meantime, I have looked on the Carehomes sight and they have mentioned that there is a possibility of capital gains tax - is this right? The bungalow would go for around £220,000 and her savings were £160,000 (have used around £56000 so far). The money from the bungalow was to go into her account to be used for future home fees. Also on the site it mentioned we could also look at some immediate needs annuity. Is anybody able to give some insight into this - have mentioned it to the rest of the family but they just seem to want to sell and get on with it I, however, am concerned that this could come back and bite us on the b-- if not carried out with some knowledge.
Many thanks for any help you can give me on this - feel a bit lost and it is all very sad.
My MIL went into a home over a year ago due to extremely bad health and being unable to look after herself in any shape or form - we did have carers coming in but they kept forgetting to turn up to put her to bed and on the last occasion she almost died - hence there was extreme haste in getting her into a home. They basically saved her life but since then she has become completely bed-bound and we have been told she is no longer well enough to go home.
We are paying fees of £100 per day and are using her bonds for payment at the moment. We are now looking at putting her bungalow on the market and have started to empty it. In the meantime, I have looked on the Carehomes sight and they have mentioned that there is a possibility of capital gains tax - is this right? The bungalow would go for around £220,000 and her savings were £160,000 (have used around £56000 so far). The money from the bungalow was to go into her account to be used for future home fees. Also on the site it mentioned we could also look at some immediate needs annuity. Is anybody able to give some insight into this - have mentioned it to the rest of the family but they just seem to want to sell and get on with it I, however, am concerned that this could come back and bite us on the b-- if not carried out with some knowledge.
Many thanks for any help you can give me on this - feel a bit lost and it is all very sad.
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Comments
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Hi
You will get better help on some aspects by posting on the over 50's forum where a lot of folk are dealing with parents in care.
My mother's house took nearly two years to sell and there was no CGT liability as it was her primary residence within 3 years of the sale.
Do you have power of attorney/guardianship? If not you need to get that sorted as without you cannot sign the sale documents (unless she is of sound mind and can sign herself?)If you've have not made a mistake, you've made nothing0 -
Thanks - I will do that - yes, my sister in law has power of attorney.0
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If the bungalow was her principal private residence why should there be CGT to pay?
http://www.direct.gov.uk/en/moneytaxandbenefits/taxes/taxonpropertyandrentalincome/dg_40208900
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