Advice Needed About Future of House

croyland87

Hi every body on a Sunday afternoon.
I need some advice on a matter about my house

I live in a property which me and my dad bought together my dads age currently 65 few years later after we bought the house my dad had a stroke and had to give up his job and then the DWP started paying interest for his part on the mortgage the mortgage is on interest only.

Now this where I don't understand my dad and my mum got separated 15 years ago and my mum carried on living in her council house age currently 57 now she has no capital or any equity of her own and is on benefits. She is not well and the hospital Dr says that she will need to go into a care home in the future. As she has no capital of her own and is legally still married to my dad but been separated 15 years could the government say to sell the property that me and my dad own were my wife and two children also live to pay for the care of my mum.

Please this advice is something I really need Thank You

DomRavioli

Potentially yes, as your parents are still married. It takes 7 years for an interest to be taken out of the equation - so if there is proof beyond reasonable doubt it may not be taken into consideration.

I would suggest you seek professional legal help as soon as possible - most solicitors run a free half hour/hour session; it will clarify the finer points, and they will advise on how best to go about it.

I don't mean to be nosey but why aren't they divorced after 15 years separation? It will be asked by the LA if they take it into consideration as a "marital asset", along with anything else which can be considered.

Hope you get it sorted, but you need the professionals on this one!

Mojisola

DomRavioli wrote: »

It takes 7 years for an interest to be taken out of the equation

The 7 year rule applies to inheritance tax. It does not cover this case.

As the couple have been separated and lived independent financial lives for so long, it's extremely unlikely that anyone would look at your father's finances when doing a financial assessment for care for your mother.

Added to which, while your father lives in the house it will be completely disregarded anyway.

One thing that you need to check - has your father got a will? Who does he leave his estate to?

If he dies intestate, your mother will inherit his share of the house and then the council will expect her to pay her own care bill.

barba

Could you not sell the property to give your mum the best possible care?

Poppy9

barba wrote: »

Could you not sell the property to give your mum the best possible care?

The OP is joint owner, lives in the property with his wife and children plus his father. So if they sold up he would have to find another home for his family with his share of the house and where would his father go?

croyland87

DomRavioli wrote: »

Potentially yes, as your parents are still married. It takes 7 years for an interest to be taken out of the equation - so if there is proof beyond reasonable doubt it may not be taken into consideration.

I would suggest you seek professional legal help as soon as possible - most solicitors run a free half hour/hour session; it will clarify the finer points, and they will advise on how best to go about it.

I don't mean to be nosey but why aren't they divorced after 15 years separation? It will be asked by the LA if they take it into consideration as a "marital asset", along with anything else which can be considered.

Hope you get it sorted, but you need the professionals on this one!

Hi thank you for your reply I have no idea why they never got divorced and also I am not sure what It takes 7 years for an interest to be taken out of the equation means can you please explain. Thank You

croyland87

barba wrote: »

Could you not sell the property to give your mum the best possible care?

If I sell the property were will I my family and my old dad go.

getmore4less

From what you have said she has no interest in the property currently,

check dads will to make sure it remains that way or have the house as joint tenants.

troubleinparadise

So you and your father bought the property jointly - was this after your parents separated? Has your mother ever lived there? And are you and your father tenants in common rather than joint tenants?

If your mother needs residential care, if her assets exceed £23,250 then she will be self-funding until her assets drop below that level.

If your mother does not have that level of assets, there will be a Local Authority financial assessment as they will be responsible for paying for her care.

I am not an expert, but depending on your answer to the first questions, I cannot see how her estranged husband's assets or house will come into assessing her assets, unless there is some form of payment agreement between your parents.

Read this Age UK booklet about the treatment of property in the means test for care home provision:

http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/FS38_Treatment_of_property_in_the_means-test_for_permanent_care_home_provision_fcs.pdf?dtrk=true

troubleinparadise

croyland87 wrote: »

Hi thank you for your reply I have no idea why they never got divorced and also I am not sure what It takes 7 years for an interest to be taken out of the equation means can you please explain. Thank You

As Mojisola posted earlier, the "7 years" issue is to do with gifts and inheritance tax, it has nothing to do with any means testing for residential care funding.

http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm#4

The seven-year rule - 'potentially exempt transfers'

Any gifts you make to individuals will be exempt from Inheritance Tax as long as you live for seven years after making the gift. These sorts of gifts are known as 'Potentially Exempt Transfers' (PETs).

croyland87

troubleinparadise wrote: »

So you and your father bought the property jointly - was this after your parents separated? Has your mother ever lived there? And are you and your father tenants in common rather than joint tenants?

If your mother needs residential care, if her assets exceed £23,250 then she will be self-funding until her assets drop below that level.

If your mother does not have that level of assets, there will be a Local Authority financial assessment as they will be responsible for paying for her care.

I am not an expert, but depending on your answer to the first questions, I cannot see how her estranged husband's assets or house will come into assessing her assets, unless there is some form of payment agreement between your parents.

Read this Age UK booklet about the treatment of property in the means test for care home provision

Hi yes me and my dad bought the property jointly in 2006 after the separation and my mother has never lived in the house that we own and me and my dad are joint tenants.