Parents putting house in our names

missbiggles1

gillykms wrote: »

Thanks again for the replies. I am not trying to cheat any system just doing what my parents want to do and what their solicitor has advised to do. I wasn't aware that it was in any way illegal. That is why I am here for advice.

Another bit which I haven't mentioned as it didn't have anything to do with my original Capital Gains Tax query is that I do have another brother who my parents do not want to place on the deeds as he has some mental health issues and myself and my other brother will be responsible for his share of the money and would plan to transfer him a set amount each month. (He is not aware of this and I am well aware there could be some heated discussions about this when the time comes). Also, in reference to Ir1277's post he has been married but is not divorced or legally separated.

Does your brother claim means tested benefits for his disability?

patchwork_cat

missbiggles1 wrote: »

Care on health grounds is covered by the NHS but there's no reason for them to pay to put a roof over someone's head, to feed them and to pay their utilities!

(And, anyway, you don't know that the OP's parents have paid taxes and NI.)

Um I think you'll find it isn't. When my grandparents were in a nursing home yes they got attendance allowance ( the benefit at the time), but that was a lot less than their fees. The OP's parents are probably not going to go into a care home because they can't be bothered anymore, it will probably be because they can't look after themselves anymore. So IMO that is a medical need in any case.


I would also like to point out this website is Money Saving Expert and yet people are saying don't play the system, I think maybe you are on the wrong website!

pmlindyloo

In view of your family situation your parents need some legal advice about writing their wills.

At the same time they can enquire about protecting their home.

Signing it over to you and your brother is not the way to go. There are perfectly legal ways of ensuring that your parents' wishes are carried out.

Their solicitor, from what you say, does not seem the best person to advise them.

Do some googling so that you have an idea of the possible options open to them. Ask friends/colleagues about this and ask for recommendations of someone who can help them.

gillykms

My father has a private pension which will pay for him up to a certain point as far as I'm aware. My mum only worked part-time in order to look after us so she only gets the basic state pension.

MissBiggles - My brother only receives income support. I did put in an application for disability allowance for him but it was refused I think on the basis that he is mobile and can (just about) look after himself yet he can't work because of his mental state.

Thanks again for all your posts. I will speak to my parents and let them know. The Age UK information was very useful, thank you BigAunty.

freeisgood

But what about the seven year rule guys? I thought that anyone could gift their property and as long as they don't die within 7 yrs, no inheritance tax need be paid. This is what we were told by a solicitor friend. Nothing illegal or immoral about it. Not cheating in any way! They are still alive and can move their assets around as they see fit.

YorkshireBoy

patchwork_cat wrote: »

We are not paying for their care, they have already paid for it via taxes and NI.

By that measure, those that don't go into a care home should get a rebate* on their tax and NI paid then? And that's a far larger proportion than those that do need to go into a care home. Still think there won't be a shortfall?


* Any rebate would have to be paid to their estate on death though, because that's the only time they can be certain they won't need a care home!

missbiggles1

patchwork_cat wrote: »

Um I think you'll find it isn't. When my grandparents were in a nursing home yes they got attendance allowance ( the benefit at the time), but that was a lot less than their fees. The OP's parents are probably not going to go into a care home because they can't be bothered anymore, it will probably be because they can't look after themselves anymore. So IMO that is a medical need in any case.


I would also like to point out this website is Money Saving Expert and yet people are saying don't play the system, I think maybe you are on the wrong website!

It may be your opinion but it isn't the reality of the situation which is why a distinction is made between medical care and social care. The NHS fully funds medical care but the LA funds social care (which is what you're describing) on a means tested basis.

http://www.nhs.uk/CarersDirect/guide/practicalsupport/Pages/NHSContinuingCare.aspx

Given that it would be the rest of us who would be paying for the OP's parents' care, suggesting that these actions would be inappropriate would actually be moneysaving for us all.

leveller2911

patchwork_cat wrote: »

We are not paying for their care, they have already paid for it via taxes and NI. The NHS was supposed to be cradle to the grave, however that has gone by the way! If they had lived in social housing all their life ( at a seriously reduced cost) they would be entitled to free care, but because they own their own home they don't qualify - how is that fair?

It doesn't work like that Patchwork.We don't have and never have had a self funding system that you mention. The taxes you and I pay now will pay for the care of the current elderly population and my/your children will be paying for our care. The NI we pay contributes to a very small percentage of the cost of care,health service,state Pension etc.

Life isn't fair sadly.Those who have never paid into the system will be looked after better in their old age than many who have contributed. You mention Social Housing being and tenants living at a "seriously reduced cost" when in fact your trying to compare apples and pears. The Social Housing sectors was never set up to make vast profits.They were set up to provide affordable housing and when the mortgages are paid off they actually make money and can use this to build more Social Housing.The rents are set at a rate that pays off the mortgages,maintenance and administration costs. The private rental sector is purely a business to make as much money as possible and to make a few people very rich.

missbiggles1

gillykms wrote: »

My father has a private pension which will pay for him up to a certain point as far as I'm aware. My mum only worked part-time in order to look after us so she only gets the basic state pension.

MissBiggles - My brother only receives income support. I did put in an application for disability allowance for him but it was refused I think on the basis that he is mobile and can (just about) look after himself yet he can't work because of his mental state.

Thanks again for all your posts. I will speak to my parents and let them know. The Age UK information was very useful, thank you BigAunty.

IS is a means tested benefit and would be affected by his receiving an inheritance over £6,000 or a regular allowance unless, I believe, paid through a trust.

Mojisola

freeisgood wrote: »

But what about the seven year rule guys? I thought that anyone could gift their property and as long as they don't die within 7 yrs, no inheritance tax need be paid. This is what we were told by a solicitor friend. Nothing illegal or immoral about it. Not cheating in any way! They are still alive and can move their assets around as they see fit.

This isn't about paying IHT; it's about paying for care. Different rules.