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Gifting house to child
Comments
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Ah so a private care home doesn't means-test you? They simply just ask for a monthly fee?
The LA will pay up to a certain maximum amount. Above that, somebody is topping up for you - or you're moving somewhere cheaper, if it exists.0 -
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:
Gotta love the Woolwich, helped a lot of us poor kids get into property...The greatest prediction of your future is your daily actions.0 -
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.
I take the point about the wording but I’m suprised that someone who qualifies for state help has the means for that home.
Are you sure it’s not NHS assisted?0 -
Are you sure it’s not NHS assisted?
There was no mention of CHC funding.
And see
https://www.telegraph.co.uk/science/2017/03/30/private-care-home-residents-pay-nearly-10000-a-year-extra-subsidise/
https://www.bbc.co.uk/news/health-42175297
https://www.ft.com/content/6c61fa30-f1dc-11e6-8758-6876151821a6
https://www.telegraph.co.uk/news/health/elder/9317340/Care-home-residents-who-pay-subsidising-the-rest-owners-admit.html0 -
[FONT=Verdana, sans-serif]If mother inherited fathers nil rate bands she will have £900,000 to play with before any IHT is due so plenty of headroom.[/FONT]0
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Similar sort of question for my situation:
Father owns his flat outright (mortgage paid off). Value circa £1m. He wants to mitigate as much of his IHT liability as possible, and ideally leave this to my young kids to put them through university / deposit for a flat in the future.
His property is basically unlettable on the open market due to its condition. He does plan on doing some works in the future. We will get valuations from local agents based on the condition and arrange the rent on the average of those.
So would the following be a decent solution:
He gifts £550,000 away to the grandchildren, leaving a balance of £450,000 which equates to the Nil Rate Band allowance of £325,000 plus the home allowance of £125,000.
He pays approx 50% of the market rent to the grandchildren
He then continues to live in the property.
No CGT impact on him as it is his PPR
No SDLT impact on the grandchildren
Kids benefit from some tax free rent payments (and establishes them with their own personal allowance as it is skipping a generation)
Assuming he lives 7 years, my father's IHT liability is reduced from circa £220k (40% of £550k) to £0 (at the property's current value)?0 -
How old are the grandchildren? Children under 18 cannot own property.0
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Put the ownership of the gifted proportion of the flat into a discretionary trust?0
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You will need professional advice from a solicitor expert in trusts to set one up - and the taxation of trusts is complex.
https://www.gov.uk/trusts-taxes/types-of-trust
https://www.step.org/member-directory0
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