Gifting house to Son when mum dies. what about her care!

snoop2008

Good afternoon peeps!!


Well its a sore topic and to be honest I don't really care anymore, as I have become the interfering daughter.


My mums house is worth £510.000. No mortgage.
Younger brother age 48 never left home.
He gets the house to live in, until he dies.


She knows she has to pay for her care. She lives on pension credit and has no savings. I asked how? I told her, she would need to sell her home to pay for care. Maybe I am right or wrong.. But I also told her my younger brother would need to move out to pay for care.. is this wrong information?


I've never quiet got my head around, IHT, AND CGt,, can anyone please help me understand, the implications and taxes he would have to pay if any , inheriting a house.


Cheers

kidmugsy

Is your father dead? If so, was he married to your mother when he died? if so, did he leave everything to her? If so, her present Nil Rate Band for inheritance tax would be £650,000, even ignoring the special provision now made for owner-occupied houses. So there would no IHT to pay. Nor would there be CGT to pay.

I know nowt about how councils claw back money spent on "care" but I'd be pretty dismayed if they didn't claw back by putting a charge on her house, or even just insisting she sell it. I don't see why the taxpayer should fund her care just so that your brother can inherit half-a-million.

snoop2008

kidmugsy wrote: »

Is your father dead? If so, was he married to your mother when he died? if so, did he leave everything to her? If so, her present Nil Rate Band for inheritance tax would be £650,000, even ignoring the special provision now made for owner-occupied houses. So there would no IHT to pay. Nor would there be CGT to pay.


Snoop: My father died 2001, was married to mum but they divorced several years before his death and at the time of divorce he also transferred his share of the house to her. They had joint ownership.


I know nowt about how councils claw back money spent on "care" but I'd be pretty dismayed if they didn't claw back by putting a charge on her house, or even just insisting she sell it. I don't see why the taxpayer should fund her care just so that your brother can inherit half-a-million.

Snoop: I agree, its what's causing the bad feelings between me and her. she is downsizing, but insists on taking my brother with her! He wont move out! and she wont encourage to move either. She said he would be homeless, I told her he will be eventually as she has to sell to pay for her care. I don't know whats bothering her, I have suggested, giving him a deposit to put down a one bedroom for him, that's not good enough and I am in the wrong! and she could get herself a one bedroom too. but that's not good enough either.

xylophone

https://www.ageuk.org.uk/information-advice/care/social-care-and-support-where-to-start/paying-for-care-support/do-i-have-to-sell-my-home-to-pay-for-care/

xylophone

Your mother can leave an interest in possession to your brother in her will.

https://www.greenwoods.co.uk/knowledge-base/private-client/life-interest-trusts/

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

csgohan4

I thought the councils would put a charge on the property until you sell the house. Do you have to sell it now??

Silvertabby

Not sure of the exact details, but I believe that if your brother is 60+ by the time your mother needs to go into a care home (if indeed she ever does) then the house can't be sold to pay for the care home fees.

Instead, I assume that the Council will put a charge on the property until your brother sells it.

snoop2008

csgohan4 wrote: »

I thought the councils would put a charge on the property until you sell the house. Do you have to sell it now??

I don't understand the rules for home owners, so I have to read what putting a charge on the house means. My mum is looking to downsize at the moment and live at that new property whenever that happens and take my brother with her. Hoping she will live for a good few years to come, she is 75, healthy, just a few age related aches and pains.

pinklady21

The obvious answer is that her son becomes her carer, surely?
Then both have a roof over their heads and your mum does not have to move into a care home.

If paying for care is inevitable, then I seem to remember there was at one time a rule that if the house was also someone else'e home, then it could not be sold as that would render them homeless. No idea if it still exists though and there may be an age restriction - ie has to be over a certain age etc. It may only also apply to certain close relatives.

Ask Age UK for assistance - they have a very helpful "helpline"
Best of luck - these matters can be very divisive in families....

Keep_pedalling

Your mum would not have to pay for home care as she is on PC, but if she ever needed residential care in the next 12 years, the house would have to go. Once your brother hits 60, under the current rules she would then get free residential care, and he would continue to get a free home.

Your brother seems to be a bit of a parasite, and your mother is being very foolish if she is giving him the right to stay one until he dies, as this could very well block you from ever getting your share of her estate, and in the long term preventing her every having a decent choice of residential care.

Good luck in persuading her to get a new will drawn up.

snoop2008

Silvertabby wrote: »

Not sure of the exact details, but I believe that if your brother is 60+ by the time your mother needs to go into a care home (if indeed she ever does) then the house can't be sold to pay for the care home fees.

Instead, I assume that the Council will put a charge on the property until your brother sells it.

Silvertabby: that may be a possibility as he doesn't have ill health and I hope mum does live for several years. I'll have to read up about putting charge on the property , how that works, because she insists he can live in the house until he dies.. and when that happens, all of her wealth goes to the government. He does not have children or a partner.