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Help!

chimchiminey
Posts: 26 Forumite
Hi,
Am wondering if you guys can help, please! Can you let me know your thoughts and what issues may arise...
Mum has an offer on her property - £525,000. She has an interest only mortgage for £140,000. She would be left with £385,000. She is 63.
She wants to give me and my sister £150,000 each. But - She would have to live with me. I would use this money as a deposit and think I can get a mortgage for £150,000.
For many reasons my mum would have to reside with me and not my sister. I'm 40, single and have one daughter, 14. I have no issue living with my mum at this current time.
I have a property myself, LTV 39%. The rental yield would be high and am reluctant to sell at present.
What issues do you forsee? Is this a silly idea? What are the complications?
The other option is that she buys her own house outright, but shes insisting that she 'sees us right'!
I hope you can help!
Thanks
Chim
Am wondering if you guys can help, please! Can you let me know your thoughts and what issues may arise...
Mum has an offer on her property - £525,000. She has an interest only mortgage for £140,000. She would be left with £385,000. She is 63.
She wants to give me and my sister £150,000 each. But - She would have to live with me. I would use this money as a deposit and think I can get a mortgage for £150,000.
For many reasons my mum would have to reside with me and not my sister. I'm 40, single and have one daughter, 14. I have no issue living with my mum at this current time.
I have a property myself, LTV 39%. The rental yield would be high and am reluctant to sell at present.
What issues do you forsee? Is this a silly idea? What are the complications?
The other option is that she buys her own house outright, but shes insisting that she 'sees us right'!
I hope you can help!
Thanks
Chim
0
Comments
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as soon as there is a thread that says anything about a parent wanting to downsizew and give a cash lumpsum to their children,or wanting to relocate to live with one or the other various things come to mind...
Deprivation of asset,
care costs if required in the future.
the responsibility of one sibling over the other associated with any care thats required
unfortunatley in seeing you and your sibling right she could be opening up problems for her own future and financial status further down the line...
Im guessing your mum is of retirement age where perhaps she is very capable of looking after herself but the journey forward could include care home fees which potentially I am guessing she would not still be in the position to self fund if she were to dispose of her biggest asset.
Just to put it into perspective current care home fees are in the region of £700 per week.frugal October...£41.82 of £40 food shopping spend for the 2 of us!
2017 toiletries challenge 179 out 145 in ...£18.64 spend0 -
A regular Q. Google deprivation of assets for a start.This is an open forum, anyone can post and I just did !0
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Thanks, I have googled this. The house would be sold to help my mum out if it came to that. I would have my first property to live in.
The responsibility for caring for her would lie with both of us, even if she didnt give us any money.
Thank you! Keep 'em coming, I want to take this to her. Ultimately she will need to see the issues so we can discuss with her.0 -
Having had a parent who self funded nursing home fees for a long time,the ability to stay in that care home was very welcome one the money reached the tiered system whereby council/social services funding is applied.
This is not always the case but you stand a better choice if you have funded your care in the past.
Whilst some council funded resedential homes are very nice,the standards within the private sector are usually higher.
If you visit some of each .....your mum may decide that actually self funding any possible care home will be a good option!!
With the best will in the world whilst you say that care will be shared responsibility weith your sibling there are certain conditions which make it impossible for care to continue within the home,however dedicated you are.frugal October...£41.82 of £40 food shopping spend for the 2 of us!
2017 toiletries challenge 179 out 145 in ...£18.64 spend0 -
How long can the 'deprivation of assets' card be used for?
ie. mother gifts proceeds from house sale at 65yo age, then requires care at 80 or 85yo ... is deprivation still an issue?0 -
Thanks for the info. Culturally we have one of those massive families that would try to resist care homes but I understand that this could be beyond our control. Thanks for your help.
Any other pitfalls?0 -
I think deprivation of assets can continue forever as long as she benefits from the money she gave away. If she lived away from me, then I think it may be seven years.0
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How long can the 'deprivation of assets' card be used for?
ie. mother gifts proceeds from house sale at 65yo age, then requires care at 80 or 85yo ... is deprivation still an issue?
I have been out of the loop with current practices since my mothers passing,but regulations have tightened all over the place regarding care funding and council contributions and it is my understanding that there have been cases where families have been very rigourously questioned regarding assets etc ...it is an area where things will only get worse while the funding is not available from councils.frugal October...£41.82 of £40 food shopping spend for the 2 of us!
2017 toiletries challenge 179 out 145 in ...£18.64 spend0 -
chimchiminey wrote: »
Any other pitfalls?
Thinking outside the box a little....how about a new partner for you,and the dynamic of another in the household living with a MIL!
Or dare I be very radical and suggest the new partner for mum....please take my comment seriously,my mother remarried at the age of 70.
That was certainly something that blindsided us and we didnt see happening...frugal October...£41.82 of £40 food shopping spend for the 2 of us!
2017 toiletries challenge 179 out 145 in ...£18.64 spend0 -
Deprivation of assets issue aside, then the only significant tax issue would be IHT if she doesn't survive 7 years after giving the gifts, in which case they would still be considered part of her estate (some relief may still be available though). Depending on the expected size of her estate and whether or not she has a double IHT band from a deceased spouse, this may or may not be an issue.0
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