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Gifting house to child
Comments
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My Dad suggested I put my student loans in to savings during university. I graduated in 2008, so it was still 1000 GBP/year. I also lived at home during university, worked and paid rent, so I could afford to save my student loan.
After graduating I got a job, saved for a couple more years, then used the money I saved over the years as a deposit on a one bed flat in Bristol for 108k in 2011. Sold in 2017 for 165k despite making zero improvements (lol housing market !!!!!!).
Moved to Germany and now I rent. I have absolutely no intention of purchasing a house in the foreseeable future (when in Rome).
I did something similar - started uni when it just went up to £3K a year loans, worked evenings and used the wages plus loans , plus a lodger to buy my first house on a 10 year woolwich mortgage rather than pay rent. By the time I graduated, sold and had £40K equity :-) I wonder why so many students go into debt...The greatest prediction of your future is your daily actions.0 -
dont_use_vistaprint wrote: »I did something similar - started uni when it just went up to £3K a year loans, worked evenings and used the wages plus loans , plus a lodger to buy my first house on a 10 year woolwich mortgage rather than pay rent. By the time I graduated, sold and had £40K equity :-) I wonder why so many students go into debt...
Because of the extortionate tuition fees and lodging fees, I expect.
And my girlfriend complains about the €90 per semester she has to pay in Germany. :rotfl:0 -
Be aware that a state funded home is unlikely to be where you'd chose to put your mother and might not be in the best place for her to have as many visitors as possible.
Wouldn't you want your mother's money spent on the best possible care for her if she needs it?0 -
Be aware that a state funded home is unlikely to be where you'd chose to put your mother and might not be in the best place for her to have as many visitors as possible.
Wouldn't you want your mother's money spent on the best possible care for her if she needs it?
Ah so a private care home doesn't means-test you? They simply just ask for a monthly fee?
Yeah, I've told my Mum to tell the IFAs she is meeting with that her main consideration is ensuring she is well cared for for life. i.e. won't run out of money and gets good care in the future.0 -
Ah so a private care home doesn't means-test you? They simply just ask for a monthly fee?
You are only means tested for your contribution if the LA are contributing (and they won't pay for any of the nicer places and if you can afford those then she won't be getting state aid anyway).
One solution that might be of interest(and a decent IFA should mention it) is a care needs annuity.
This is like an insurance policy in reverse.
You pay a (large) lump sum and the insurance company will pay the fees as long as you need them.
So lets say the fees are £40K per year and you pay a lump sum of £120K, then if you live < 3 years you've lost out (but had a guarantee with no end date) but you could live a long time and make a saving.
On average you are going to pay more with an annuity because the comapny doing it has costs, highly trained acuaries, is taking a risk and of course want to make a profit (like any insurance).
The benefit is that she would be able to meet the aim of ensuring her care is taken care of (inflation included) AND also guarantee an inheritance.
Most people don't last that long in care homes (although there are exceptions). You can get care at home up to 4 times a day more cheaply so those in care home tend to be at the very end of life when they enter (there are exceptin of course).
Maybe do some sums for a range of options but if the IFA doesn't mention care annuties as an option then I wouldn't think they were very good.0 -
And my girlfriend complains about the €90 per semester she has to pay in Germany. :rotfl:Please do not quote spam as this enables it to 'live on' once the spam post is removed.
If you quote me, don't forget the capital 'M'
Declutterers of the world - unite! :rotfl::rotfl:0 -
Google "gifts with reservation" and "previously owned assets tax"0
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Be aware that a state funded home is unlikely to be where you'd chose to put your mother and might not be in the best place for her to have as many visitors as possible.
I think that talking about a "state funded home" is misleading.
It is perfectly possible for an LA or CHC funded resident to have a place in a privately run home - indeed, there have been comments about homes charging self funders at a rate that subsidises non self funders.
My relative was visiting his self funding relative in her £55,000 plus per annum nursing home just a couple of weeks back and was speaking to a visitor to the home whose own elderly relative was seeking a place there on an LA assisted basis.0 -
Money_maker wrote: »Marry you and she gets a slice of the marital assets if you part. In other words, the house your mother is living in.
No, in Germany assets are only split if they are obtained after the marriage. Anything that was mine before the marriage is mine after the marriage.0 -
If you are paying the whole lot yourself (self-funded) then your are not means tested.
You are only means tested for your contribution if the LA are contributing (and they won't pay for any of the nicer places and if you can afford those then she won't be getting state aid anyway).
One solution that might be of interest(and a decent IFA should mention it) is a care needs annuity.
This is like an insurance policy in reverse.
You pay a (large) lump sum and the insurance company will pay the fees as long as you need them.
So lets say the fees are £40K per year and you pay a lump sum of £120K, then if you live < 3 years you've lost out (but had a guarantee with no end date) but you could live a long time and make a saving.
On average you are going to pay more with an annuity because the comapny doing it has costs, highly trained acuaries, is taking a risk and of course want to make a profit (like any insurance).
The benefit is that she would be able to meet the aim of ensuring her care is taken care of (inflation included) AND also guarantee an inheritance.
Most people don't last that long in care homes (although there are exceptions). You can get care at home up to 4 times a day more cheaply so those in care home tend to be at the very end of life when they enter (there are exceptin of course).
Maybe do some sums for a range of options but if the IFA doesn't mention care annuties as an option then I wouldn't think they were very good.
I will ask my Mum to ask for advice regarding this tomorrow. I know that 2 of the IFAs have recommended annuities. But an annuity that pays for the care home sounds like a consideration.0
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