Deprivation of assets advice

twokcc

monkeyspanner wrote: »

Your dad's 50% of the house will also be assessable and the council may well seek to put a financial charge on the house.

I'm not sure if this is correct as your ownership of the house is as tenneants in common believe the full value of the house should be disregarded- you need t look at Crags guidelines and Age UK both can give you answers to this

antrobus

twokcc wrote: »

I'm not sure if this is correct as your ownership of the house is as tenneants in common believe the full value of the house should be disregarded- you need t look at Crags guidelines and Age UK both can give you answers to this

I believe the correct answer would be that "dad's 50% of the house" would indeed be "assessable", since OP has given no indication that they are living in the property and are themselves disabled, over 60, or whatever. Of course, the exact value of that 50% interest would be a different question; it isn't necessarily half the value of the property.

Assuming OP is living in England see - http://www.housingcare.org/downloads/kbase/1546.pdf

troubleinparadise

Savvy_Sue wrote: »

nigreeves, I am sorry for your loss.

There's no suggestion, however, that this was a regular thing: the very fact that two payments from each parent were made at the same time indicates the opposite, to my mind.

I'm giving the OP the benefit of the doubt - but the information given suggests that there is more to the financial decisions than has been written here.

monkeyspanner

twokcc wrote: »

I'm not sure if this is correct as your ownership of the house is as tenneants in common believe the full value of the house should be disregarded- you need t look at Crags guidelines and Age UK both can give you answers to this

It has been assumed in the past that because it would be difficult to sell 50% or some other proportion of the ownership of a property that councils would assume a nil value. However, it is still an asset in the ownership of the care home resident. Councils have I believe decided to take a longer term view and wait to recover some value from tenants in common owned properties by using deferred payment arrangements.

nigreeves

Thanks for your advice everyone. I have some research to do.

getmore4less

troubleinparadise wrote: »

Sorry to hear about your loss of your mum so suddenly.



Perhaps I am just misunderstanding your post, but it sounds as though what you are describing is a sum of money akin to the gift allowance for tax purposes - "£3000 each for this year and last".

If your parents gifted you those types of sums of money annually then it might be that the making of this gift, despite its unfortunate timing, could be seen as a regular gift out of taxed income that just continued a normal pattern if there is an assessment of your father's finances for residential care.

Unless the estate is over the nill rate band there is no tax benifit.

troubleinparadise

getmore4less wrote: »

Unless the estate is over the nill rate band there is no tax benifit.

Agreed - so what is the thinking behind this (as taken from the OP):

Approx one month before mum died we had a discussion re finances and it was agreed that her and dad wanted to gift me £3000 each for this year and last making £12,000.

Why would you need to make a gift for this year and last year, unless you wanted to record or declare it for some official purpose? But then take it all out of an account with only one named holder.....?

And quite simply it could have just been a generous gift from parents to child with no anticipation of what the future held.

carefullycautious

Is there any reason your father can't stay in his own home and have a care package arranged?