Transferring “Tenants in Common” share after death

Pinkflamingo*

My parents owned their bungalow as tenants in common, with their wills appointing two trustees, myself and a friend. It stated that whichever parent died first left their share of the bungalow to me. My dad died a while back and the bungalow, which is owned outright, is still in both names, his and my mother’s.
Both my parents worked hard all their lives, paid tax and National Insurance and, of course, never wanted to have their hard earned money swallowed up in nursing home fees.
My mother and I are in the process of applying to the Land Registry for a transfer of my dad’s share of the bungalow to myself. I was informed by the Land Registry that my mother needs to complete forms TR1, AP1 and to prove our identities (my mother doesn’t have a passport or driving license) we both have to complete form ID1 (form to prove our identities along with documents). We are not involving a solicitor so will be personally taking these forms to our closest land registry office (Fylde), mostly for the identity proof. I was informed that Fylde office will then submit the forms to Nottingham Land Registry.
Part 10 of the TP1 (Declaration of Trust) states The transferee is more than one person and:
They are to hold the property on trust as joint tenants
They are to hold the property on trust for themselves as tenants in common in equal shares
They are to hold the property on trust

We have to select the correct option from the above statements.
With regard to avoiding care home fees (if my mother needs full time care in the future), I am trying to find out which option to select on the form TP1. Would it be more in our interest to be down as joint tenants or tenants in common alongside a will naming two trustees. Perhaps a Joint Tenancy would be ok since a 50% share in the bungalow is already mine. Maybe the Tenants in Common option would be the way forward.
Any help or advice for the best way forward.
Thanks.

bigadaj

The advice would be to pay the care home fees if necessary that your mother might need.

It will give her choices and may well get a better standard of care, obviously if you don't care whether your mother ends up in the lowest quality available that's up to you, hope you enjoy the money.

Nearlyold

Both my parents worked hard all their lives, paid tax and National Insurance and, of course, never wanted to have their hard earned money swallowed up in nursing home fees.

But if it's someone else's hard earned money paying for the fees then that's okay?

xylophone

Does either will create an interest in possession trust?

http://www.tolleytaxtutor.co.uk/taxtutor/files/subscriber/personal-tax/uk-trusts-and-estates/lectures/1d12.pdf

I'd suggest that your mother consults the solicitor who drew up the wills.

Pinkflamingo*

Doesn't their own hard earned money, on which they paid taxes for 50 years count? Also paid full council tax all their lives. My dad never had a single day off work in his life. I guess in your eyes it would have been better if they'd been on benefits and sponged off the state. Lol!

Pinkflamingo*

To Nearlyold. Oh yes, instead of work they could have made it a hobby, like yourself, to submit over 600 posts on one forum alone. Get a job!

Linton

Pinkflamingo* wrote: »

Doesn't their own hard earned money, on which they paid taxes for 50 years count? Also paid full council tax all their lives. My dad never had a single day off work in his life. I guess in your eyes it would have been better if they'd been on benefits and sponged off the state. Lol!

The question is what should an old person's wealth be used for? To ensure that their final years are as comfortable as possible or maximise the benefit to the descendents? Sadly but perhaps not surprisingly some descendents think the latter.

Most people dont go into care homes and dont want to. Many more use visiting carers. If you pay your own way, by equity release if need be, you have a much wider choice of carer and what you would like them to do. Council offerings are limited in duration and number. By using your saved wealth you can minimise the chance that you will ever have to go into a care home.

Mojisola

Pinkflamingo* wrote: »

My parents owned their bungalow as tenants in common, with their wills appointing two trustees, myself and a friend.

It stated that whichever parent died first left their share of the bungalow to me. My dad died a while back and the bungalow, which is owned outright, is still in both names, his and my mother’s.

My mother and I are in the process of applying to the Land Registry for a transfer of my dad’s share of the bungalow to myself.

Perhaps a Joint Tenancy would be ok since a 50% share in the bungalow is already mine.

Maybe the Tenants in Common option would be the way forward.

Doesn't the will create a life trust giving your mother the right to live in the house until she doesn't need to any more? A well written will certainly should do so.

If you become joint tenants, your mother is effectively giving away her share of the property (you will both own all the property). If she ever needs residential care, that will be counted as deprivation of capital and the council will assess her as if she has money up to the value of 50% of the property.

If you die before her, she will become the sole owner and all the value will be counted if she needs to go into a home.

If you become tenants in common, you can leave your share to someone else and, if you die before her, that will get passed on to your beneficiary.

Nearlyold

Pinkflamingo* wrote: »

To Nearlyold. Oh yes, instead of work they could have made it a hobby, like yourself, to submit over 600 posts on one forum alone. Get a job!

You are right of course at 1.12 post a day how would anyone have time to work?;)

kingrulzuk

Pinkflamingo* wrote: »

To Nearlyold. Oh yes, instead of work they could have made it a hobby, like yourself, to submit over 600 posts on one forum alone. Get a job!

This person needs help from a shrink :rotfl:

xylophone

A person of my acquaintance and her late spouse also paid (and she continues to pay) income tax etc - this did not prevent the need to sell the family home when she became frail enough to need full time care - she pays full fees in the care home where she now lives.