Buying Grandmothers house

elsien

If the continuing health care does not cover all her costs, or she needs to pay a bit more to get a better standard of care (there are some bad homes out there) then she may need the money from the sale of the house to pay for that for an indeterminate length of time. Hence it being in her best interests to get as much as possible for it.
I think you need to forget about the splitting the house between you and your sister as per the will. Because thats irrelevant if the money is needed for her care. Buy the house at its proper value. Get your nan the best care she can afford. Then when she passes on you and your sister get your share of the remains of the estate. If there is any. Going in to care and keeping the full value of the house for people to inherit is not necessarily compatible.

BQM

We did alot of research into the homes and she has been accepted to the best one we found (which is big weight off our shoulders after some of the places we saw )

elsien wrote: »

If the continuing health care does not cover all her costs, or she needs to pay a bit more to get a better standard of care (there are some bad homes out there) then she may need the money from the sale of the house to pay for that for an indeterminate length of time. Hence it being in her best interests to get as much as possible for it.
I think you need to forget about the splitting the house between you and your sister as per the will. Because that irrelevant if the money is needed for her care. Buy the house at its proper value. Get your nan the best care she can afford. Then when she passes on you and your sister get your share of the remains of the estate. If there is any. Going in to care and keeping the full value of the house for people to inherit is not necessarily compatible.

elsien

That's good news for you. Having just had a relative in a very bad home, I know what a stressful time it can be for all concerned.

BQM

Yes , maybe renting it would be a good option for now . I hadnt thought of that . Just all a mad panic at the moment with the baby on the way as well!

ValHaller wrote: »

1) It has to be in your grandmother's best interests. If you were selling on her behalf to anyone non connected, there would not be an issue. As you are selling to yourself, you will have to jump through hoops at least to prove that you were getting best value.

You would firstly need to justify the decision to sell as being in her best interests. If the decision passed that test, you would be committed to sell. You would perhaps have to put it on the open market and be prepared to sell to anyone who might outbid you.

If you won't do this and you want the house, leave it alone until she's gone

2) Discounting to yourself is very bad idea. It will make you very vulnerable to criticism and perhaps prosecution. Particularly if your sister feels you have swindled her and decides to report you

The professionals will not tell you that you cannot sell to yourself, because you can. But they will not give you a clear answer that you can - or even really acknowledge your question, because the fact that you are proposing 2) means that you are very close to the point where you should be reported to the Court of Protection.

About all you could possibly do legitimately is rent the place to yourself at a low market rent.

BQM

Yeah we def made sure we did our homework after all the problems we had with the home carers before she was admitted. Id look after her myself if I could , but I have to work fulltime and now she needs qualified nursing/medical staff

elsien wrote: »

That's good news for you. Having just had a relative in a very bad home, I know what a stressful time it can be for all concerned.

kingstreet

Continuing care is reviewed annually.

If it is no longer considered applicable, perhaps if her needs have become stable and predictable, you could find you then need council funding and this is means-tested. By disposing of the house, you could give rise to an allegation of deprivation of assets.

phoebe1989seb

kingstreet wrote: »

Continuing care is reviewed annually.

If it is no longer considered applicable, perhaps if her needs have become stable and predictable, you could find you then need council funding and this is means-tested. By disposing of the house, you could give rise to an allegation of deprivation of assets.

What kingstreet said ^^^^^

I have two parents with Dementia and recently had to sell their home to fund their nursing home fees. They were assessed in January for NHS CHC, but both only qualified for nursing contributions, but I understand even if they had qualified, CHC can be taken away if a future assessment considers the person's needs have changed.

It might be an idea to pop over to the Talking Point Alzheimer's forum (a google search will find it) and post there - you may find someone that has been through a similar situation and can offer further advice

Errata

She qualifies for NHS continuing healthcare

She may qualify, but that doesn't mean she'll be awarded it.

Yorkie1

As others have said, there are 2 issues:

1. POA. You are duty bound to act in your GM's best interests. This means doing a proper assessment of whether it is better for her financial income for the property to be sold or rented out (assuming she won't now return to live in it).

If you want a good idea of the true valuation of the property (i.e. as opposed to what you would market it at, which is almost certain to be higher in order to allow for negotiation downwards by a buyer), appoint a RICS surveyor to do you a valuation. Get 2-3 local letting agents round to give you an idea of rental income and management costs. I assume no mortgage?

IF the best financial interests of your GM indicate that the property should be sold, it must be sold at the best price possible - hence the RICS valuation. This means that you cannot sell it to yourself or you / your sister at an undervalue. This is breach of the POA and can land you in really hot water, potentially even criminal for fraud (abuse of position).

You would need to take advice on the best way to invest the proceeds of sale for your GM's benefit.

Note that until your GM dies, the fact that her will gives the property to you and your sister is irrelevant. It is only a statement of her wishes at the time of making the will. Circumstances, such as the need for residential care etc, might mean that her whole estate is spent before she dies. You can't just split the income from the sale between you now (I know you've not suggested this, but in case anyone else is reading...)

2. Deprivation of assets. If someone needs means-tested care or benefits, and has given away an asset of theirs or sold it at an undervalue, they can nevertheless be treated as if they still had the value of that asset. This would mean that she would not get the benefit to pay for the care. This could mean that she couldn't afford the place she is living in, and have to move to a cheaper one.

There's a few 'what ifs' there but best to be fully informed.

monkeyspanner

kingstreet wrote: »

Continuing care is reviewed annually.

If it is no longer considered applicable, perhaps if her needs have become stable and predictable, you could find you then need council funding and this is means-tested. By disposing of the house, you could give rise to an allegation of deprivation of assets.

The CHC National Framework clearly states that a well controlled need is still a need. Therefore that need should still be assessed.