Elderly parents have moved to a nursing home. How best to deal with their property?

stayathomemum

My elderly parents have recently moved into a nursing home, which they are self funding. They have their house, which the family are in he process of sorting out.

The question we have is what to do with their property.

I have thought of a number of options:
1. Sell the property - this gives a finite pot of money to finance their care

2. Rent the property. The house needs some work (new kitchen/bathroom/decorating) to bring it up to date. Property value continues to increase and they have an income from it.

3. My sister and I buy the property and rent it. Provides them with the capital and the family have an investment.

We plan to get some legal/financial advice in the new year. Just wondered if anyone had any advice or experience of this.

TIA.

bryanb

Have you got power of attorney. If not ask them what to do.

thequant

stayathomemum wrote: »

My elderly parents have recently moved into a nursing home, which they are self funding. They have their house, which the family are in he process of sorting out.

The question we have is what to do with their property.

I have thought of a number of options:
1. Sell the property - this gives a finite pot of money to finance their care

2. Rent the property. The house needs some work (new kitchen/bathroom/decorating) to bring it up to date. Property value continues to increase and they have an income from it.

3. My sister and I buy the property and rent it. Provides them with the capital and the family have an investment.

We plan to get some legal/financial advice in the new year. Just wondered if anyone had any advice or experience of this.

TIA.

Thinly Veiled, "how do I preserve my inheritance ?"

AdrianC

Put some numbers together. REALISTIC ones.

Then, and only then, can you decide if it's worth renting (presumably, paying for management?) or selling. If it's worth renting, but you think that the hassle and risk is too much for your parents' requirements, then you can considering BtLing it yourselves. If you're happy to self-manage, that might make the numbers make more sense.

xylophone

What is your parents' preferred option?

Are they able to self fund without income from the house?

Have you considered immediate care annuities?
https://www.moneyadviceservice.org.uk/en/articles/immediate-need-care-fee-payment-plans

There seems to be very little difference between your buying the house and a stranger buying it- remember that you would be obliged to pay full market value.

Are your parents entitled to Attendance Allowance or the nursing care component?

https://www.gov.uk/attendance-allowance/overview

https://www.moneyadviceservice.org.uk/en/articles/registered-nursing-care-contribution

pinkshoes

If rent would cover the care fees, then clearly that would be the best option, as it would give continuous funding.

If it doesn't, then you could rent it out to cover fees, the sell the house when they pass away to cover any shortfall. Speak to the care provider about this.

Option 3 sounds the same as 1. If you buy it at a cheap price, this may be seen as deprivation of assets, although would save estate agent fees.

mufi

thequant wrote: »

Thinly Veiled, "how do I preserve my inheritance ?"

I don't read it that way.



We were in a similar position a couple of years ago. We decided to sell, simply because the sums didn't stack up to rent it out once we'd done similar renovations to those required by the OP's parent's house. Plus we didn't fancy becoming accidental landlords...
Very unlikely the rental will go anywhere near the care fees for two people.

trailingspouse

And even if the sub-text is that the OP is wanting to preserve their inheritance, what exactly is wrong with that?

Their parents have presumably worked hard to be in the position they're in - the OP does right to ensure that the capital isn't frittered away unnecessarily, even if she is the one who will inherit in the end.

stayathomemum

thequant wrote: »

Thinly Veiled, "how do I preserve my inheritance ?"

Thanks for that really helpful reply.

No, actually we want to ensure the our parents have enough funds to cover their costs in the nursing home.

stator

Renting it out is the most flexible option, you can always change your mind later.
Family lets could be risky, if things go wrong could affect your family relationships.

stayathomemum

I wanted to research the options. Dad has initially suggested selling the property. I think there might be alternatives, but if that's what he ultimately decides, than we'll go with it.

I don't think he will want possible potential hassle with renting the property.

It's a conversation we plan to have with them once Christmas is out of the way.

I really do want what's best for them.