Lending Parents Money

Kev76

Hi,

I'm not sure whether this is in the right sub-fourm so apologies if not. I've searched the internet for help on this - typing in parents and lending gets loads of hits but always about the parents lending money to the kids!!

My parents are in their late 70s and finding things more and more difficult - Dad has early indications of dementia. Thier house only has a toilet downstairs, which causes my mum to worry when my dad goes to the toilet in the night.

I'd like to lend them some money to get a toilet put upstairs (and a few other bits) but I'm concerned about losing the money if they have to go into care and the house is used as payment. I would not expect them to repay the loan.

Is there a way I can safeguard my money? It would be nice if I were able to get the house valued before and after my investment, and have something formal to show that I own an amount of the house.

Any help at all is most appreciated. Even if you just know somewhere more appropriate I can ask my question!!

Thanks.

Dunroamin

Depending on the layout, it's not likely to cost more than a couple of thousand to put a loo in upstairs, so "safeguarding" your money seems hardly worth the bother.

Does your father claim Attendance Allowance because of his care needs?

Kev76

Dunroamin wrote: »

Depending on the layout, it's not likely to cost more than a couple of thousand to put a loo in upstairs, so "safeguarding" your money seems hardly worth the bother.

Does your father claim Attendance Allowance because of his care needs?

Thanks. Although the toilet is the main driver, I would also like to take the opportunity to give my mum a new kitchen with fridge at head height rather than on the floor, and a few other things like this to make their lives more pleasant. If it makes a difference to what I need to do, assume I'm going to be lending 30k on a 150k house.

My dad doesn't claim anything at the moment. I do need to find out more about this sort of stuff on behalf of my mum.

tanith

Its a nice thing to do for your parents well done you, but don't remove the downstairs toilet as this will be a godsend should your Dad be unable to use the stairs in the future.. I don't think you could really count a new fridge as part of a house upgrade to be honest.
You might bet help from the council if you ask for an assessment to be done of your parents needs and the house.

tyllwyd

Why not go to a solicitor and get a formal loan agreement drawn up stating that the loan is only repayable on the sale of the house (or whatever the solicitor recommends).

pmlindyloo

Kev76 wrote: »

Hi,

I'm not sure whether this is in the right sub-fourm so apologies if not. I've searched the internet for help on this - typing in parents and lending gets loads of hits but always about the parents lending money to the kids!!

My parents are in their late 70s and finding things more and more difficult - Dad has early indications of dementia. Thier house only has a toilet downstairs, which causes my mum to worry when my dad goes to the toilet in the night.

I'd like to lend them some money to get a toilet put upstairs (and a few other bits) but I'm concerned about losing the money if they have to go into care and the house is used as payment. I would not expect them to repay the loan.

Is there a way I can safeguard my money? It would be nice if I were able to get the house valued before and after my investment, and have something formal to show that I own an amount of the house.

Any help at all is most appreciated. Even if you just know somewhere more appropriate I can ask my question!!

Thanks.

Have your parents made a will and sought advice about financial planning for after their death(s)?


Your question could be resolved by seeking this kind of advice.


At the same time you should also be considering Lasting Power of Attorney for your parents.

Kev76

pmlindyloo wrote: »

Have your parents made a will and sought advice about financial planning for after their death(s)?


Your question could be resolved by seeking this kind of advice.


At the same time you should also be considering Lasting Power of Attorney for your parents.

I believe they have a will that leaves half to me and half to my brother. I don't see how this helps but I may be missing something.

Kev76

tyllwyd wrote: »

Why not go to a solicitor and get a formal loan agreement drawn up stating that the loan is only repayable on the sale of the house (or whatever the solicitor recommends).

Thanks. I wasn't sure whether a solicitor would charge me hundreds of pounds just for asking the question!! And are you saying that the solicitor should know what type of agreement the local authority would recognise when they take into account how much of the house they take to cover care fees?

Person_one

I'd go and have a chat with your parents and their GP about what help may be available. Sometimes, the adaptations that seem like they would be the most useful aren't actually the best ones to prioritise. An occupational therapist would be a good person to talk to if your dad can be referred.

pawsies

Maybe they would be better off moving to a bungalow?

It doesn't sound like you'll get the money back if you sell.

Mojisola

Kev76 wrote: »

My parents are in their late 70s and finding things more and more difficult - Dad has early indications of dementia. Thier house only has a toilet downstairs, which causes my mum to worry when my dad goes to the toilet in the night.

As a temporary measure, see if Dad will use a urine bottle at night. That way he doesn't even have to leave the bedroom.

I'd like to lend them some money to get a toilet put upstairs (and a few other bits) but I'm concerned about losing the money if they have to go into care and the house is used as payment. I would not expect them to repay the loan.

Is there a way I can safeguard my money? It would be nice if I were able to get the house valued before and after my investment, and have something formal to show that I own an amount of the house.

Rather than "own" part of the house, just write out a loan agreement in duplicate - money loaned for house improvements - loan to be repaid when house is sold - that Mum and Dad and you sign, date (and have witnessed, if you want to go for the belts and braces approach). Keep one for yourself and leave one with the parents.

If one of a couple needs residential care, the value of the house is not taken into account. It's only if the only resident goes into care that the capital tied up in the house would be counted. The money owing to you would be repaid on the sale of the house. If both parents die while still living in the house, their executor would repay the debt before dividing the remaining assets as per the will.

I hope your Dad is being seen by the GP and the Memory Clinic. Ask for a referral to an Occupational Therapist if his mobility is a problem. Also check that they are getting any benefits that they are entitled to.

You will also find lots of useful advice on websites such as https://www.carersuk.org/ and http://forum.alzheimers.org.uk/forum.php