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

stayathomemum

xylophone wrote: »

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

Currently self funding without income from the house.
Attendance allowance claimed.
We would be paying market value. Not looking for a reduction at all.

Argghhh

people are very quick to judge.. either way not a single one of us would prefer our parents money(our inheritance) to get swallowed up in care home fees/ taxes so those who make snide comments are just plain hypocrites

G_M

What is the current market value?
What is the expected monthly rental income?#
What is the potential annual rental income after tax, agents fees, overheads, voids etc?
What would you need to spend to get it up to rentable condition?
Are your lives busy or could you manage the rental? Are you emotionally strong (or weakened by parents poor health?) - what if the rental hit a problem? Could you dispassionately cope?
What other income/capital do parents have?
What are the care home costs?
What benefits do/could they claim?
Do your parents have mental capacity? If not, do you have POA?
Might your parents wish/be able to return home ever?

Answer all these and more, then ask the question again......

stator

stayathomemum wrote: »

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

You can get agents who will handle the whole thing for you. There's no harm in getting a rental valuation done and then you'll get an idea if it's worth the hassle

Mardle

If they are getting Attendance Allowance they may also be getting Pension Guarantee Credit which would be reduced if they had rental income from their property.

tea-bag

Do up and rent out. This will help cover care fees and improve the asset value. Cheap and basic is the way to go.

xylophone

If they are getting Attendance Allowance they may also be getting Pension Guarantee Credit which would be reduced if they had rental income from their property.

The benefits have nothing to do with each other.

PGC is means tested - AA is not.

It seems to me unlikely that anyone who is self funding in a care home would be on PGC - the fees at one near here are £50,000+a year...........and that's for one person.
http://www.payingforcare.org/care-home-fees

xylophone

OP, you have not said whether or not you have POA - if not, it would simplify matters to get this sorted out while your parents still have capacity.

https://www.gov.uk/power-of-attorney/overview

J_i_m

Argghhh wrote: »

people are very quick to judge.. either way not a single one of us would prefer our parents money(our inheritance) to get swallowed up in care home fees/ taxes so those who make snide comments are just plain hypocrites

People are quick to judge.

However... personally I'd be far more interested in the peace of mind that my parents are financially secure, are well looked after and have the means to pay for it.

To me, that is infinitely more important than inheriting money.

I work, I earn my living and I save for my future. I don't rely on some inheritance that might or might not happen.

I'd put my parents welfare first each and every time.

mik82

Would the rental income after tax even cover nursing home fees? Given the cost of care this is unlikely. The other thing to consider is that the cost of their care is likely to increase faster than rent even if it does cover it at the moment.