Transferring property

khowe6

My nan is currently living in her own property. For different reasons we are thinking of signing the deeds of the property over to myself and my sister, and my nan to continue living in it until such time this is not possible - not in the near future I hope! However, my sister receives Housing benefit - will this effect her housing benefits?

MallyGirl

I think you will get a better response in the benefits section:

http://forums.moneysavingexpert.com/forumdisplay.php?f=139

This is about Pensions and retirement.

dunstonh

For different reasons we are thinking of signing the deeds of the property over to myself and my sister, and my nan to continue living in it until such time this is not possible

And what do you think that will achieve?

It doesnt avoid inheritance tax.
It creates a capital gains tax liability
It doesnt avoid the property being included in means tests.
Your sister would also have an invesmtent property share to declare on her means tested benefits.
it would incur landlord costs to you and your sister as you have legal requirements going forward.

Jenniefour

And your nan leaves herself very vulnerable indeed to anything untoward happening in the lives of yourself and your sister, e.g. divorce, serious future financial difficulties, and risks effectively being made homeless.

I can't understand why this is even being considered as there are no advantages whatsoever for your nan, or her future well being.

bigadaj

khowe6 wrote: »

My nan is currently living in her own property. For different reasons we are thinking of signing the deeds of the property over to myself and my sister, and my nan to continue living in it until such time this is not possible - not in the near future I hope! However, my sister receives Housing benefit - will this effect her housing benefits?

What are the 'different reasons'?

kidmugsy

A loopy and dangerous plan. Why not just flush tenners down the loo?

System

kidmugsy wrote: »

Why not just flush tenners down the loo?

That's expensive. The new plastic notes do not go mushy like the old ones, and there will be exorbitant plumber's charges to get the drains cleared out.

Browntoa

its called "deprivation of assets"


http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/


You may want to pass on savings or other capital to your children or others during your lifetime, but this can affect your eligibility for funding, and you should consider the impact this could have in the future.
Deprivation could include:

• A lump-sum payment made to someone else, for example as a gift
• Substantial expenditure that has been incurred suddenly and is out of character with previous spending
• The title deeds of a property have been transferred to someone else
• Assets put in to a trust that cannot be revoked
• Assets converted into another form that are disregarded in the final assessment, for example personal possessions
• Assets reduced by living extravagantly, for example gambling
• Assets used to purchase an investment bond with life insurance
• Selling an asset for less than its true value.

The timing and motivation for a disposal of assets are of central importance and the local authority has a responsibility to consider these elements as part of means test. In order to claim that you have deprived yourself of assets, your local authority show that you were aware that you may need care and support in the future when you carried out the transfer.

Ganga

Is this not one of those " can we avoid care home " posts?

Browntoa

and ends up in an epic fail as councils now regularly and successfully challenge these

kidmugsy

Clifford_Pope wrote: »

That's expensive. The new plastic notes do not go mushy like the old ones, and there will be exorbitant plumber's charges to get the drains cleared out.

Good point. I suppose using them to light cigars isn't a good scheme either.