Renting flat to family while in care home

Mojisola

TrixA wrote: »

The Council is subsidising the care home costs and he's paying the rest from cash assets.

She had assumed that this could be rented to her at a below market rate on an informal basis

TrixA wrote: »

I didn't ask for advice on the issue of the Council contribution to the care home costs, simply on the implications of the renting to family issue.

It's an important issue to be sure about.

If, after the 3 months/12 weeks, the value of his property is taken into account and the council stop their contribution towards the care home costs then rental income (even at the full rate) may not be enough to cover the full cost.

http://www.careinfoscotland.scot/topics/care-homes/paying-care-home-fees/property-disregard/
http://www.careinfoscotland.scot/topics/care-homes/paying-care-home-fees/capital-limits/

AdrianC

TrixA wrote: »

He's not likely to live there again, he's 89 and now too frail to be living alone.

Is he mentally acute enough to be deemed to have the capacity to fully understand the implications of such a major decision?

GobbledyGook

I assume the 'council contribution' is actually the goverment contribution folks in Scotland get if the need personal care around £171 a week (plus another amount if assessed as needing nursing care) rather than the council themselves assessing him as being a funded place? It's a different system in England so maybe what is causing confusion.

Is your FIL capable of being a landlord? There are a lot of legalities and he needs to be on top of them.

Also something to think about - are the extended family going to be happy if SIL is being subsidised by FIL when (assuming the house has to be sold eventually to pay for care home fees) they are going to get no inheritance themselves? If she lives in FIL's house paying below market rent that could be quite a discrepancy if it lasts for a number of years. If the flat is to be rented out would it not make more sense to rent it to someone who'll pay top whack which will increase the time before it needs to be sold?

Another thing to consider is what happens when FIL dies (because a charge can be put on the house by the council if fees start to be billed before the house is)? Are the executors of his will ready for the fact that right around the time she loses her father someone will have to be responsible for the paperwork telling her she has to leave her home?

xylophone

My husband, who is the blood relative here, is well across these details. I didn't ask for advice on the issue of the Council contribution to the care home costs, simply on the implications of the renting to family issue.

Posters are not permitted to give advice. The implications of renting to your sister-in-law in the circumstances you outline have been discussed.

The care home funding has been mentioned as it may be ( almost certainly will be) relevant to the situation.