Selling Mother in laws bungalow?

Lori007

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.

Did start this thread on the selling houses part and was advised to move it to here.

fluffig

Been there. Not a nice place to be. Big hug.

We went to an independant financial adviser who specifically had the LLLA qualification (later life accredited adviser) and paid for a review of the elderly relative's finances (for whom we had EPOA).

Doubtless each situation varies, but in our case we were advised no capital gains tax due on sale of property, but there was capital gains tax due on sale of some of the bonds, but not others ... I was out of mind with worry as to how to ensure said relative could fund their ongoing care, so we also asked the IFA to contact the very limited number of companies who offered care needs annuities. The quotes varied quite a bit. We were about to sign the papers to buy one when the relative died.

With every best wish x

alanq

"The final 36 months (three years) that you own it will be treated as if you lived there, even if you didn't. The property must have been your only or main home at some time during the time that you owned it."
http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

So if the bungalow was MIL's main or only home prior to going into care there will be no capital gains tax due on its sale provided it is sold within 36 months of moving out.

getmore4less

Do you have POA to do this?

alanq

A good point. I had assumed that this was the case as MIL's bonds were being used to pay bills. but MIL may have authorised this at a time when she had capacity (which indeed she may still have despite being physically frail).

Even if there is a POA there may be a restriction contained within preventing its use to sell the home.

Lori007

Two (I have three) of my sister-in-laws have POA hence they released bonds. Thank you so much for this advice I didn't know which way to turn since people seem to be burying their heads in the sand which is not the cleverest thing to be doing. We have two people who have already approached us about the bungalow (saw skips outside) so at least we know now that we can sell without CG - she did live in the bungalow upto going into the home.

[Deleted User]

Lori007 wrote: »

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.

If she has gone into 24/7 care for HEALTH reasons then the priority before you she pays a penny for care is to get her FULLY assessed for entitlement for NHS fully funded continuing care.

If you are her Attorney as in you have registered POA then you have a legal obligation not to spend her money on things she may be entitled to claim for - i.e care fees and you also have a duty to make a claim on her behalf if she cannot do it herself.

Unless she has already been through the process and any appeal and been declined then I suggest you look into this as a matter of priority.

The NHS and social services automatically deem anyone with assets as self funding so expect a battle. I suggest do nothing about the house or any assets until she has been fully assessed for NHS funding. A full assessment will involve a multi disciplinary team which will include everyone involved in her medical care both now and immediately prior to coming into care and should also involve social services, family members, any advocate (you maybe?) and of course, the patient as well if they have capacity and can take part.

Good luck

Lori007

oh my god - it all sounds so complicated - thank you all soooo much for your help you have been brilliant - I will now pass all this information onto my sister in law and hopefully she will be able to sort it. Thank you again.

missile

they just seem to want to sell and get on with it

That would seem to be for the best.

I, however, am concerned that this could come back and bite us on the b-- if not carried out with some knowledge.

I feel sure those sister-in-laws who have POA will look after Mil's best interests. Only they could be held accountable for any rash decisions.

DiggerUK

Lori,
Deleted_User is right, see the thread started by monkeyspanner that covers funding for care homes. Currently on page 2, easy to spot as it has nearly 800 posts, and been viewed over 90,000 times.
Best of fortune.
...
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agrinnall

DiggerUK wrote: »

Lori,
Deleted_User is right, see the thread started by monkeyspanner that covers funding for care homes. Currently on page 2, easy to spot as it has nearly 800 posts, and been viewed over 90,000 times.
Best of fortune.
...
-

One might have thought that after making nearly 1800 posts yourself you would know how to post a link to another thread .

For the benefit of the OP, it's this one:

https://forums.moneysavingexpert.com/discussion/800521