Has anyone moved back in with parents? Advice needed.

SpiritDawnWolf

Hi all,

(Can't seem to find the answer to this and I've searched a few forums with no success, but please feel free to move this question to a more appropriate forum or point me to an existing thread?)

I can see many people are asking about moving back in with their parents so they can save for deposit/reduce debt, etc, but mine is slightly different but kind of along those lines.

My Mam died of cancer 3 years ago so my Dad is living in the 3-bed semi-detatched family house with the cat. Just the 2 of them rattling around in there. He works full-time and has just turned 60 and is paying £600 per month for his mortgage (around £21k remaining) as well as everything else.

I have my own flat, just me and my dog, and I pay £450 per month for my mortgage (this is double the monthly payment as I calculate I'll be mortgage-free by 45 - I'm 39 now)

My Dad has been hinting on the past year about me moving in with him but not while I have my dog (we jokingly call it DD-Day - Dead-Dog Day....please don't be offended!!)

I know my Dad is lonely in the house by himself.

I said I would sell up, which would cover both mortgages and we'd both be mortgage free if I lived at his.

The things you may need to know:
He doesn't get any benefits at all as he works full-time.
I work fulltime in a secure job
We already have a great relationship and both were carers for my mam in her last few months during which time I moved into the parents house (the dog stayed with sister) and I don't envision any arguments.
I have concerns over my dad's diabetes and memory functions so would feel better being close to him.
My dad has outstanding debts that he and Mam were joint signatures on.

The things I need to know are;
Will my living there have any implications on any benefits he would be allowed when he retired?
how would we go about making sure the house fell to me if anything happened to Dad (this isn't the reason I'm doing this, but I don't want to be homeless either!)
has anyone actually done this and found any problems?
Will I be liable for any of my Dad's outstanding debts if I am left the house?


I know this is a big ask, but I just need some guidance on this as I am not sure where to turn and don't want to ask solicitors/mortgage/land registry people about the Deeds thing if there's a better way to go about it.
Am I being naive in not thinking this through and following what my heart wants instead of rational thought?

Thanks in advance

SDW

Voyager2002

You are asking some good questions:

On the benefits issue: check whether your Dad is likely to be eligible for any means-tested benefits (such as Pension Credit), or would receive a standard pension. If you were living in the same household as him (basically if you were shopping and cooking together) then your income would be taking into account and might well prevent him from receiving certain benefits;

When your Dad eventually dies, if he leaves the house to you then you might well have to pay inheritance tax on its value. Equally, his estate (the value of everything he leaves you ) would have to repay his debts, with only what is left after tax and debts passing to you. So if you wanted to continue living in the house, you would need to have enough money available to pay these costs, otherwise the house would have to be sold to raise the money needed.

Lotus-eater

What happens if your Dad survives long enough to need a nursing home?

SpiritDawnWolf

I don't know what happens in that situation, I'm sure I've heard that people sell their houses to pay for nursing homes but surely not *everyone* that has gone into a home has had to sell their house to do so? Do they?

This is why I need advice; so that I know what the situation is and forecast any future problems/situations.

How much does nursing homes cost? Is there a way to save for them? (In the way you save for funeral costs, etc)

I don't want to have to turn around to him and say "I'm sorry, I can't move in with you in case you need to go into a home in 10/20 years time." because it means for that time he's going to get worse with his loneliness :-(

Dumbe

If you are going to pay off the mortgage .. Could you then put the house into joint names.. Given you would have a genuine interest in it...

But I think you need the expert advice of a solicitor that deals in these matters

Sooki

Have you looked into renting your property?

ash28

You said the dog stayed with sister - is that your sister or your dad's sister?

If it's your sister how does she feel about what you are contemplating? Is she happy that you would be the sole beneficiary of your dad's house after paying off the £21k remaining on the mortgage?

Person_one

The thing that struck me is that your dad is only 60, hardly an old man yet you're talking as though he's about 85!

You might be looking at 20 or 30 years of living together, is that what you want? Are you definitely going to stay single in the future? Do you never want another dog?

zzzLazyDaisy

Good questions OP and you need to take advice. But here are some thoughts...

Can you afford to pay a market price for your Dad's house, even if it will mean taking a mortgage? This would mean the house will be in your sole name, your Dad will have funds to pay off his debts, and he can live with you.

This is the safest way to protect your home.

An alternative is to buy into his home for half the price and put the house in joint names. This will work if the money released is enough to enable him to pay off his debts and you are as sure as you can be that he won't run up any more debts. Why? because a house held in joint names passes to the surviving joint owner on death, BUT the deceased's share falls into the estate for IHT purposes and payment of debts (since April 2001). So if he has debts on death up to the value of his share of the house, and you can't pay them, you would have to sell or mortgage the house.

Note - the above only applies to joint property. Money held in joint accounts automatically passes to the surviving joint account holder and does not pass under the will or intestacy.

As for care home fees. If you have bought at market value there is no deprivation of assets. If the house is held in joint names, and you have bought your half at market value, the house cannot be sold to pay for care home fees, but a charge can be made against his 'half' in certain circumstances, so you would have to take advice on this.

One way to deal with potential care home fees is to take out an insurance (possibly with some of the money that you pay him for the house?) that way if he has to go into a home the insurance would pay out and your home would be safe. Again, you need to take advice on this.

However, you do need to be clear. If what you are planning to do is to buy his house from him for the value of the outstanding mortgage (£21k) that is a sale at an undervalue, and would be viewed as deprivation of assets. It has potential tax consequences, and also consequences if he ever needs to claim means tested benefits or care home fees, and as he would continue to live in the house, he would probably retain a beneficial interest which the creditors could seek to pursue. You definitely need to take advice on that one.

Dx

pmlindyloo

I would like to suggest that you post this on the Over 50s board. (as well as here)

This question (or similar) often comes up there.

In the end you are going to need legal advice as regards the house(s).

There are many possible scenarios so people's ideas will be useful and then when you have made the decision about the house (s) then you can get it all done legally and with the best possible scenario to make sure that you are both protected in the future.

Treevo

Keep your flat to rent out if you do this. Never give up your security.