Father in law has incurable illness, how to look after mum's assets?

Errata

itcanbedone wrote: »

their current house is worth about £160,000. He has mesothelioma (lung cancer caused by asbestos), we have instructed a solicitor to deal with the claim, but I have no idea how much this would be if successful, and filled in the forms for industrial benefits. The new property is £90,000. X

Sorry to hear about your dad, and wishing you all well. This may give you an insight into what the compensation award could be.
http://www.robertsjackson.co.uk/news/legal/higher-compensation-amounts-for-elderly-mesothelioma-sufferers/

cte1111

It sounds like the best bet would be for your FIL to leave their old house to his sons (or the proceeds from this, if it has been sold before he dies). This would be free of inheritance tax, as it looks his total estate will be below the IHT limit.

itcanbedone_2

so of the house is in joint names (we can find out today) do we need to change it into half a house each (or a proportion each) - and if it is in just his name, how do we change that so that the mum is protected? although I suppose she won't need to be protected with this house. Is it seen as his if it is in just his name?

The thing is I don't think either of them really contributed to the house as they bought it for next to nothing 50 odd years ago, I believe they didn't even have a mortgage he sold his motorbike etc!

madbadrob

Why not put the second house solely in your mothers name and that would then not be a part of any means testing should your father need social care in his last days? The first house could be changed to Tenants in common with a 50/50 split. What Nicki has said regarding who put more in to the house wouldnt stand up in a court as a court would rule that the length of time spent there would outweigh any of the financial aspects based on the time your mother spent cleaning cooking etc in the house. At least this way there would only be a 50% value of the house to go to means testing should social care become needed. The question that would arise and one I don't know the answer to would the DWP see this as a deliberate deprivation and still include the full value of the property?

Rob

joerugby

itcanbedone wrote: »

Ohhhh where to start.

My husbands father has been diagnosed with terminal cancer, one which he will most likely be compensated for, but we have been told he has only months to live. he is in his late 70s.

Quick as a flash we want to move them to live close to us, and they have just enough savings to buy a small house without selling theirs, so they can move in at their leisure. When they are comfortably moved, they want to give the two children (my husband and his brother) the original house, or sell it and give them the money.

I know if the mum needs care in the future, the government can claw this back. She says she will have her smaller house as an asset, and some savings, so she doesn't think this will be a problem, but I'm not so sure. I've also heard that it could be classed as income if my husband is given some money, and then he will have to pay tax. the amount falls way below the inheritance tax threshold.

could someone please explain the rules to me. I'm going round in sad circles.

Your Mum-in-law may be right. You need to do the sums. If she will have sufficient annual income from pensions, savings, sale of smaller house, compensation etc etc to pay for her future care there will be no problem at all.

itcanbedone_2

Ok, the house is in joint names. Most of the bank accounts are in the Dads name, as are the bills :eek:

But at least they know where everything is, which reminds me to get my own house in order, once we have sorted theirs.

Savvy_Sue

troubleinparadise wrote: »

If this hasnt already been addressed, It would also be prudent to set up power of attorney for MIL to act on FIL's behalf if necessary should he become too unwell to handle finances/bank for himself, and perhaps transfer utilities etc into her name so that there is less adninistration when times are more stressful later.

Actually, I'd suggest they both set up PofA, if Dad is well enough and Mum understands what's involved. And I'd further suggest that each of them names at least two attorneys, so that eg it's not all down to Mum to do the legwork on behalf of Dad.

itcanbedone_2

Thank you all, I think the Power of Attorney is something we need to sort out now, its so difficult as every question we ask them is almost like saying "Dads going to get worse soon".

Can anyone they trust be PoA and could they both have the same ones? Maybe the mum and one brother for the dad, and the two brothers for the mum?

Looks like its going to be a busy weekend!

troubleinparadise

Yes, anyone they trust and feel happy with can be an attorney - your suggestions are good ones.

I know it all sounds very doom and gloom, but addressing these things now will take away some worries and allow the family to concentrate on just spending as much good time together as is possible.

POAs are a good idea for anyone, whatever age - a friend of mine has recently had a completely unexpected and devastating stroke, and his wife is having to pick up the pieces of their lives, his business, and care for him without having had that in place, and it really is adding to her stresses and worries. She has applied to the OPG for Attorneyship, but it takes weeks and means a lot of financial things are out of control just when you don't need those worries too.

Mojisola

itcanbedone wrote: »

Thank you all, I think the Power of Attorney is something we need to sort out now, its so difficult as every question we ask them is almost like saying "Dads going to get worse soon".

Can anyone they trust be PoA and could they both have the same ones? Maybe the mum and one brother for the dad, and the two brothers for the mum?

Mum and Dad had each other and me as their POAs. Theirs were done under the old system where they had the option to let the POAs act "jointly and severally" which meant that I was able to get on and act for the them independently. I presume the same option exists under the new system.

When I talked to Mum and Dad about setting up POAs, I made the point that it would mean someone they trusted would be making decisions if they weren't able to themselves (always say "if" rather than "when").