Father wants to sign his house over to my brother and I

Brandnewstart79

Morning all,

I have been to visit my family this weekend and have had to chat with my father & brother about the possibility of my father signing his property over to us.

He is 86 yr old and has recently been in hospital and we have slowly noticed a decline in his health & mind.

I will be discharged in August this year so what kind of impact will this have on me if my father decides he wants this to happen? The house will still be lived in by my father so there is no income to be had off the property.

Regards

fermi

If done after your discharge, no possible impact at all.

Brandnewstart79

fermi wrote: »

If done after your discharge, no possible impact at all.

Fermi,

Thank you again for your help. I was wondering about that so should i tell my brother and father to not do nothing until August?

Browntoa

theres still problems like "deprivation of assets " for your father though , its not that simple


http://www.which.co.uk/elderly-care/financing-care/gifting-assets/343063-what-are-the-rules-for-gifting-assets


Powers of recovery

If the local authority funds someone’s residential care costs and later rules that a person has ‘deliberately deprived’ themselves of assets, they have the power to claim care costs from the person that the assets were transferred to.

unforeseen

And of course there is the problem that even though no money changes hands you are still a landlord and must meet the legal requirements that that role imposes on you.

fermi

Brandnewstart79 wrote: »

Fermi,

Thank you again for your help. I was wondering about that so should i tell my brother and father to not do nothing until August?

fermi wrote: »

If done after your discharge, no possible impact at all.

^^^ regards the bankruptcy only I mean.

Generali

Getting EPA for the two of you might work better in practical terms.

Keep_pedalling

Do not let him do it, unless he has plenty of other assets to support himself. There is no advantage to doing this because if he needs residential care this will be seen as deprivation of assets so he will still have to self fund. It could backfire horrible if a thing like divorce, sudden death or another bankruptcy happened to either of you.

As he intends to carry on living there it will always be counted as part of his estate, and you may also end up having to pay CGT when it is eventually sold if it's value increases substantially.

If he is still able to make decisions then as a matter of urgency he should put lasting powers of attorney (LPA) in place for finance and health. At the moment you cannot be an attorney, but if his health is failing then do not wait that long, get him to appoint your brother plus a back up attorney.

Keep_pedalling

Generali wrote: »

Getting EPA for the two of you might work better in practical terms.

EPAs have been replaced with LPAs, but I agree this is an absolute priority, and can't wait until the OP is discharged which disqualifies him.

P.S. The other priority is to make sure he has a valid and up to date will in place.

Keep_pedalling

Brandnewstart79 wrote: »

What is EPA?

Enduring power of attorney, but see my previous posts.

Brandnewstart79

Hi and thank you for your replies.

His health is not deterioating to the extent something bad is going to happen imminently but we have spoken about putting something in place for the future. He is still mobile and active but its difficult for us to see a slight decline in him has he has been such a role model to my borther and me. We have put it down to his medication but he has been taken off most of it as the Doctor said he was taking to much.

I have read the link about Powers of Recovery and seen the following:-

"Legally, local authorities have the power to recover costs within six months of the resident approaching them for funding. If the transfer was made more than six months before this time, the local authority cannot use this law."

I can honestly say that there will be no chance of my father going into care anytime soon and will no doubt be laughing and joking with us for many more years to come.