slighty off topic

kaffinity

My dad wants to gift his house to me now while he is still around to avoid his house being used in the event he should need to go into care. Any advice?

Cheers

Karen

Mortgage_Mark_2

Best to speak to a solicitor, could be potential IHT/Stamp Duty implications.

jayroc2k

basic rules are that it falls along the lines of inheritance tax (he has to live for a minimum of X number of years post gifting) and you may be liable for stamp duty on the market value

those are the generic guideline but speak to a tax lawyer an HMRC will frown if they find you to be in breach

Tax efficiency saves you money, tax evasion puts you in the slammer

HappyMJ

kaffinity wrote: »

My dad wants to gift his house to me now while he is still around to avoid his house being used in the event he should need to go into care. Any advice?

Cheers

Karen

Sure no problem. In come circumstances he can't continue to live in it rent free. You could rent it out to someone else then rent him another property locally for him to live in.

amnblog

IHT is not the end of it. There are many implications.

If you and he are both serious you had better get some legal advice.

caprikid1

"in the event he should need to go into care"

Google "Deprivation of Assets", you are unlikely to achieve your goal.

Why should we pay for his care when he has the money ?

kaffinity

caprikid1 wrote: »

"in the event he should need to go into care"

Google "Deprivation of Assets", you are unlikely to achieve your goal.

Why should we pay for his care when he has the money ?

Why should he work all his life to buy a home to leave to me when those who have never worked and live in social housing get their care paid for?

I hasten to add his home is worth about 70k and its paid off. He wants me to have it as an asset. Inheritance tax doesn't come into it. I am a government employee and would pay any tax I am supposed to in any case. Its my belief he has already paid for any care in the event he might need any already after 50 years working paying taxes national insurance and contributing to the economy. Why should he have to pay twice?

He wants me to secure my inheritance now as it's all he ever worked for. Hardly a fortune and I won't be made to feel guilty when I also work full time and live in accordance with the rules of tax and NI.

kaffinity

By the way we are not in England. We are in NI.

mrginge

kaffinity wrote: »

Why should he work all his life to buy a home to leave to me when those who have never worked and live in social housing get their care paid for?

Or alternatively, why should I have to fund the care of someone who has 70k in the bank?

kaffinity

mrginge wrote: »

Or alternatively, why should I have to fund the care of someone who has 70k in the bank?

You are missing the point. By working for 50 years he has earned his care if he needs it. And that's key. He could get run over by a bus and die (god forbid) and never need to go into any type of home so he wants to gift me his property now. 70k would last no time at all. My cousin's care is currently 550 a week.

ViolaLass

kaffinity wrote: »

You are missing the point. By working for 50 years he has earned his care if he needs it. And that's key. He could get run over by a bus and die (god forbid) and never need to go into any type of home so he wants to gift me his property now. 70k would last no time at all. My cousin's care is currently 550 a week.

Paying NI entitles you to health care when you need it but it is not a savings pot. You don't get to avoid the doctor for 50 years and then claim free old-age care in lieu. Would you consider him less entitled if he had needed operations earlier in life?

Your argument that he might get run over by a bus isn't relevant - surely you would inherit anyway in that case and would not need to have been given the house earlier?