can we give are kids are home

micsey

me and my wife are both 70 and in pretty good health,are two sons one 44 other 42 live with us and have all there lives,the question is if we go into care will they be turfed out of there home to pay for are care,we have no savings and own are home,thanks

mrcow

If you give them your home, what's to say that they don't then sell it from underneath you and turf you out on the street?

monty-doggy

IF you give them your home, and later need care, this could be seen as deprivation of assets and cause big problems.
You could sell it to them and then keep your money to pay for your care, and then upon your death they would inherit any remaining money and pay off the mortgage with it.

uknick

Try googling "tenants in common". In the past this has been used to avoid inheritance tax and, as a knock on effect, possibly care home fees with regard to the portion of the house sold.

However, as monty-doggy says, there may be an issue with deprivation of assets if the local authority think the transfer/purchase has been done to avoid care home fees. Whilst you are fit and well at present, I don't know how long it has to be after the change of ownership a local authority will allow before they consider the sale was done to avoid care home fees.

In addition to that, there may be an issue with the HMRC about previously owned asset tax (POAT) if you don't pay market rent to the new joint owner, i.e. your children.

Sorry to throw lots of issues at you, but as you can see the government have tried to close the legal loop holes when it comes to IHT and care home fees.

pollypenny

At 44 and 42 surely they are old enough to stand on their own two feet.

If you have to go into care they could pay you rent, which might cover your fees, along with Attendance Allowance.

Don't think of signing house over so that we who pay tax pay your fees.

John_Pierpoint

We really need to know the "net worth" of both of you, the value of the house, why the children are still "at home" and to what extent you are subsidising their lifestyle.
Are they paying their fair share of all.expenses including repairs and council tax?

https://forums.moneysavingexpert.com/discussion/4809952

micsey

house is worth about 160k,yes they have always paid there way ect,we all chip in when something needs doing,one of my sons is not working at the mo,could they just chuck them out?

margaretclare

micsey wrote: »

house is worth about 160k,yes they have always paid there way ect,we all chip in when something needs doing,one of my sons is not working at the mo,could they just chuck them out?

Could who just chuck them out?

At 70 and in good health the likelihood is that you won't either of you ever need to go into care.

Mojisola

micsey wrote: »

house is worth about 160k,yes they have always paid there way ect,we all chip in when something needs doing,one of my sons is not working at the mo,could they just chuck them out?

The council does not "chuck" people out on the street.

If one of a couple needs residential care, the house is ignored when their ability to pay is assessed.

If the other partner also needs care and there is a another family resident in the home who is over 60 or who is 'incapacitated', the house is ignored.

If you have to go into a care home and pay your way, you will have your pension and probably pension credit and Attendance Allowance. You will have to find the difference between your income and the cost of the care home - the council will not be involved.

If you cannot find the difference, the LA may put you on a deferred payment plan where they will cover the difference and will recover the money when the house is sold.

As your sons haven't had the expense of running their own households, they should have been thinking ahead and putting money in savings so that they could finance a move into rented accommodation should the need arise. Why should the taxpayer pay care home fees so that they can own a house after you've gone?

AgeUK have some useful factsheets on paying for care.

micsey

they have helped with the mortgage over the years and bills and everything Else

Mojisola

micsey wrote: »

they have helped with the mortgage over the years and bills and everything Else

If they have been paying towards the mortgage, I wonder if they could be seen as having a beneficial interest in the property?

It could be worth getting legal advice on it.