Mother in law selling house

chelseablue

My mother in law lives alone in a 3 bedroom house that she owns (mortgage paid off since 2013)

Her brother would love her to come and live with him (she's currently thinking about it) Her brother also lives alone, in a 2 bed bungalow that he owns (no mortgage).

Is it as simple as selling her house, her then having a large bank balance from the sale and then moving in with her brother?

She would have approx. £350,000 from the sale, so if she needed care in the future it would be paid for from this money (either paying carers to come in or her in a nursing home possibly)

She is in her late 60's

Anything she would need to be aware of?

Comms69

Why wouldn't it be that simple?


Unless she's on bail...


She can do as she wishes, her age is largely irrelevant.

Mojisola

chelseablue wrote: »

My mother in law lives alone in a 3 bedroom house that she owns (mortgage paid off since 2013)

Her brother would love her to come and live with him (she's currently thinking about it) Her brother also lives alone, in a 2 bed bungalow that he owns (no mortgage).

If he was willing, she could buy a share of her brother's house.

chelseablue

Comms69 wrote: »

Why wouldn't it be that simple?


Unless she's on bail...


She can do as she wishes, her age is largely irrelevant.

Not on bail as far as I know :rotfl:

No idea if she would, but what happens if she wanted to give some of the money to her children or grandchildren?

Would it be seen as deprivation of assets?

LittleMrsThrifty

Another option to consider, particularly whilst interest rates are low, is to keep her house and rent it out. She could use some of the money she gets in rent to live off or give to her brother, or anything else. She would still have the house in case she ever needs it. Were house prices to rise sharply she might struggle to get back on the property ladder in the future if she needs to.

It wouldn't be deprivation of assets unless she deliberately gave it away or frittered it away to avoid care fees.

Comms69

chelseablue wrote: »

Not on bail as far as I know :rotfl:

No idea if she would, but what happens if she wanted to give some of the money to her children or grandchildren?

Would it be seen as deprivation of assets?

Not necessarily. Assuming she's in good health overall, late 60s isn't anything to worry about.


In terms of inheritance tax there's a £3,000 limit on gifts I think (check!!) but she can spend her money for the most part as she wants.


It would be sensible to keep an amount back if long term care was needed.

AlexMac

Age UK's definitions and discussion of what's reasonable are helpful;

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

I'm in my early 70's and have no reason to think that I'm teetering on the brink so I can't see that I'd fall foul of the Council "derivation of assets" test that

1. You must have known at the time you got rid of your property or money that you needed or may need care and support

2. Avoiding paying for care must have been a significant reason for giving away your home or reducing your savings.

And I love the examples, that unreasonable behaviour might include going on a gambling spree or lashing out on pricey jewellery or a car. That means I'd better not buy another Beemer as I have done ever five-six years or so!

AlexMac

As an afterthought and given that it's the son-in-law (or as my mate calls 'em, the outlaws) asking about how the MIL could realise a big wad of cash...

chelseablue wrote: »

... Anything she would need to be aware of?...

I'd advise not hanging around the top of the stairs when you're around, lol

chelseablue

AlexMac wrote: »

As an afterthought and given that it's the son-in-law (or as my mate calls 'em, the outlaws) asking about how the MIL could realise a big wad of cash... I'd advise not hanging around the top of the stairs when you're around, lol

I'm daughter in law

Plus if she moved to a bungalow there'd be no stairs for me to push her down :rotfl:

tlc678910

Hi,
It might be worth confirming your MIL's brother does not intend to charge her rent - for the avoidance of doubt. I assume they would split the bills?

If I was your MIL I would want to keep enough money to buy a suitable property iin case living with my brother did not work out as well as I hoped.

What will happen to MIL if brother dies. Will she inherit his property and continue living in it or does he have children that will inherit and MIL will be expected to move out - or have lifetime right to reside in his will?

Tlc

chelseablue

The brother has never married or had any children, I believe his will leaves everything to my mother in laws 2 children (so my husband and his brother)
Plus the other sisters 2 children.

Good point about what would happen to MIL if the brother died first, something to ask/think about