Would this work?

need_an_answer

marliepanda wrote: »

Gifting 10k a year would be seen as deprivation of capital.

The only possible way it could NOT be seen as that would be if you routinely gave your children 5k a year and that was normal going back many yearts. Im assuming that is not the case.

it is not the same as paying rent or expenses, it is very clearly DOC.

I too believe this to be the case.

Gifting an amount that is out of character or not in line with normal spending and income could at a later stage be deemed a deprivation of asset,especially if the gifting coincided with the disposal of a large asset in the form of property.

If you were to sell the property you currently own roughly how much capital would that give you?

at a rough estimate I would guess you could be spending £10k a year on a private rental,with that figure increasing annually.

I'm sure you can work the figures out to see that even a very large capital amount is unlikely to take you forward for perhaps the next 30 years or so into a time of your life where the opportunities to earn a salary are diminishing and your care needs potentially increasing.

Look at shared ownerships at least that way you still have a capital stake in something rather than just handing your money away in the private rental sector.
Over 60s equity part ownerships also seem popular at the moment and whilst I confess to know very little about them I'm still convinced you would have more long term stability there than private rental.

bouicca21

I'm slightly puzzled you are 'approaching retirement age' yet are not eligible for housing that generally requires you to be 55+?

I spent nearly 3 years in rented when I split up with my ex. There was the landlord who didn't pay the mortgage (or do repairs) and got repossessed and the one who just decided to sell up. Never again would I risk the roof over my head.

need_an_answer

bouicca21 wrote: »

I'm slightly puzzled you are 'approaching retirement age' yet are not eligible for housing that generally requires you to be 55+?

I've seen some adverts for "gated communities " for the over 45's.

Not looked at them any further simply because they are of little interest to me at present but those types of deals and lifestyles presumably appeal to some.

moneyistooshorttomention

ACG wrote: »

It sounds like you may not be old enough just yet, but even equity release could be a better option. You put down your equity as a deposit, you get an equity relelase mortgage for the difference and at least then you have your home until you pass or go in to a home.

The downside there however is that if you live a while you may find there is no inheritance for your kids. But at least you have a home for life more or less..

But even equity release has its snags. I think OP is a woman and therefore would currently receive less "income" from it than a man. That sort of sex discrimination is still legal at the moment. I believe that discrimination will become illegal somewhere between 5-10 years - but I bet anyone taking on such a scheme under current discriminatory system wouldnt be able to turn round and tell the Scheme to now pay them a higher rate (as they werent allowed to discriminate any longer). You'd be stuck on the discriminatory lower "womens" rate - less money and probably seething about the injustice of it.

*************

Re renting (again?) - I'll echo renting isnt what it was. I remember when it was pretty secure/rent-controlled/no deposit ever asked of me/etc/etc. It's not like that these days. I wouldnt dream of renting with all the insecurity etc etc that happens in the rented sector these days.

You may be best off gritting your teeth until you get to the applicable age group and then buying a retirement flat in the area you have in mind.

Hoploz

If your money won't stretch in another part of the country have you considered a static home? Those over-sized mobile homes which are like lovely bungalows. There would be site fees to pay and little in terms of capital growth, but you could find something closer to your family for far less and it would be a secure future for yourself. Renting is madness.

Cheeky_Monkey

The simple answer to your thread title question is NO

AnotherJoe

Buzyizzy wrote: »

I've already discussed it with my daughter who is the elder child and she is happy for me to live in rental. I don't qualify for retirement accommodation as I am not old enough, but I am approaching that time.

Shame on her then. And this makes your idea even worse since you have so much longer to eke out a miserable low income existence having given all your assets away.


p.s. yes and how on earth are you "approaching retirement age" if you arent even 55?

csgohan4

when the money dries up and you face eviction, I wonder whether your children will return the favour?????


It's all good to have intentions to live closer to your children, but they have their own lives to live, their own children e.t.c, they are no longer children but adults. Perhaps you want to move because your lonely??

Smodlet

As all of the above. Gone are the days of halfway decent rental properties unless you are very well off and long gone are the days when you could just expect the taxpayers to bail you out because you chose to fritter away all your money.

There have been many threads on here regarding gifting money or indeed property to offspring to avoid paying tax of one kind or another. Why should the state pay for your accommodation and care when, if you held on to your current property or bought another one, you would be in a position to pay for it yourself? If that sounds harsh to you, blame the government; that is what DOC rules are designed to avoid. The world of welfare is a much less forgiving place than it was and it was never easy to begin with.

As also already mentioned, how do you know your children even want you around? They sound as if they might be interested only in your money. Will they be there when some private LL summarily throws you out? I hope so but would not want to bet on it.

Many people these days have no choice but to work until they drop just to avoid being homeless. Maybe you could consider a part time job of some kind; it might improve your social life and your prospects for buying nearer to the SE.

Kevie192

So, let me get this straight...

You want to 'gift' £5k per year to each of your children and then, when your money runs out, you expect the taxpayer to pick up the slack and pay for your housing?

Are you for real?