Help parents

heidi279

Hi there

My folks are struggling with the everyday costs of life

They own a 2 bedroom bungalow valued at about 180k (no mortgage)

They have us three children and a grandson

They are retired 67 and 62 - dad is on DLA

Is it possible that mum and dad could give us kids the bungalow but we pay the costs of them living there ie council tax, elec, gas, water. We would pay for any upkeep on the property (roof needs replacing and it needs rewiring) and they would stay there for the rest of their lives.

I am aware of this "gifting property" thing and "deprivation of assets" and I take it this would still apply?

Any advice would be much appreciated

Many thanks

RAS

Have you checked that they are getting all the benefits to which they are entitled?

www.turn2us.org.uk.

heidi279

Yes, I have sorted all that for them x

heidi279

They can cover the essentials but have nothing for their retirement or to travel or do the things they want to do x

sleepless_saver

If you and your siblings bought the house then your parents' home is potentially at risk if any of you becomes bankrupt or divorces. And you would have a problem if any of you needed to claim means tested benefits. It would be a lot simpler and safer to just pay for the repairs etc.

Yorkie1

It's really not a good idea for your parents.

At the moment they have an asset worth something and therefore some security for their old age if all else fails.

If they give it away, then:
- if they need to claim any means-tested benefits or care provision now or in the foreseeable future, they will be deemed to have received the full market value of the bungalow and therefore be ineligible for those benefits (this is deprivation of assets you've referred to)
- if they wanted to claim housing benefit in the future they'd be unable to anyway, because they're the previous owners of it
- they have absolutely no security of accommodation at all. Therefore if you and your OH split up, or one of you died and the other remarried, or either of you got into financial difficulties, then they could be booted out without any recompense
- if you or your OH needed to claim benefits it would cause difficulties as it's one of your assets

It's a superficially attractive solution but it really isn't the right one.

xylophone

Perhaps you and your siblings might club together to make your parents a loan secured against the property- the interest could be rolled up and paid when the house is sold or on the death of the second parent etc - you would see a solicitor to sort out the formalities.

McKneff

Perhaps you and your siblings could just set up a standing order and actually give your parents, say, 25 quid a week each.......


Or they could just sell their home, blow it all on a world cruise and then come back and private rent out of their income when they come home.

booksurr

why do you think you need something in return now for supporting your parents?

if the idea is that you cannot afford to give money to parents unless you take out a loan on the property then that is a totally different question to you simply saying dear parent here is a lump sum now sign over the house to me

please clarify your motives and financial position so advice can be given sensibly

heidi279

I dont need anything in return from my parents - I help them in every way I can, unfortunately, despite working full time shifts all my working life I don't have this sort of money to give them. I wish I did! My brother and sister also work full tine and always have done, but he has a family of his own and my sister lives in a small fiat and is expecting her first baby so they are in no position to help out extensively. It's not easy living in the south of the country - property is soooo expensive!

Mojisola

heidi279 wrote: »

My folks are struggling with the everyday costs of life

They own a 2 bedroom bungalow valued at about 180k (no mortgage)

They are retired 67 and 62 - dad is on DLA

Would it be worth getting them to do a Statement of Affairs and getting advice on cutting costs on the Debt-free Board?

Also, check that they are claiming all the benefits they are entitled to. Are they getting Pension Credit? If your Dad has care needs, could your Mum claim Carer's Allowance?