Selling 50% of a house to pay for care home fees?

getmore4less

brigez wrote: »

Dad died in 1994, trust was set up in 2011 by my Mum to reduce inheritance tax. Both my brother and me were aware of the trust but we are not aware of our legal responsibilities. The trustees meeting will hopefully set that straight and help us decide what is the right thing to do.

If the house needs to be sold in whole so be it, my brother will just have to realise what he needs to do.

In my original post I asked if anyone has sold 50% of a property before, as that is what the local authority are holding my Mum responsible for.

What did dad will say.

To late for an effective DOV

Was your brother living there at the time.

There is a potential issue here as the gift to trust may be a gift with reservation.

brigez

getmore4less wrote: »

What did dad will say.

To late for an effective DOV

Was your brother living there at the time.

There is a potential issue here as the gift to trust may be a gift with reservation.

Dad left no will and my brother moved in after the trust was sent up when his marriage broke down. I will wait and see what the trust solicitors have to say.

Thanks for your help.

AnotherJoe

brigez wrote: »

Dad died in 1994, trust was set up in 2011 by my Mum to reduce inheritance tax. Both my brother and me were aware of the trust but we are not aware of our legal responsibilities. The trustees meeting will hopefully set that straight and help us decide what is the right thing to do.

If the house needs to be sold in whole so be it, my brother will just have to realise what he needs to do.

In my original post I asked if anyone has sold 50% of a property before, as that is what the local authority are holding my Mum responsible for.

From what you've explained you are lucky in that respect, I'm surprised they arent going after 100%


You cant sell 50% especially not with a resident aged under 60 with a dodgy legal claim to it. Who on earth would buy that?

xylophone

It appears that the property is now owned by the Trustees.

Looking at

https://www.samconveyancing.co.uk/news/conveyancing/putting-a-property-into-trust-5116

It would appear that as the settlor (the mother) could benefit from the Trust, there would have been no question of any IHT saving?

In addition, if the property is now sold by the Trustees, it would seem that there may well be CGT and other tax implications?

It is as well that the OP is seeing the solicitor concerning the way forward.

getmore4less

brigez wrote: »

Dad left no will and my brother moved in after the trust was sent up when his marriage broke down. I will wait and see what the trust solicitors have to say.

Thanks for your help.

How did mum and dad own the house and what was its value when he died.

If there was IHT issues then it may well have been over the "spouse inherits everything" limit

We are dealing with "proper" solicitors here and not some financial planning organization that charges a lot but sets up infective trusts.

AnotherJoe

newbie1980 wrote: »

this is how my mums house has been split and my dad has passed so mum only owns 50% now
they was told by the person doing the will that by doing this this would stop the care home fees as you cant sell 50% off a house

how this will be in reality if ever it comes to it i dont know

No you cant sell 50% of a house but you can sell 100% of it and then remit 50% to the other owners and start using the 50% your mother gets to pay to the care authority !
There are as mentioned upthread, exceptions when a house cant be sold, for example one of the owners eg you in this case, lives there and is aged over 60, but these exceptions arent to do with the difficulty of part selling house.

Browntoa

Are they definitely solicitor and not Will writers ?

xylophone

We are dealing with "proper" solicitors here and not some financial planning organization that charges a lot but sets up infective trusts.

With toxic shocks to follow?:)

lisyloo

brigez wrote: »

In my original post I asked if anyone has sold 50% of a property before, as that is what the local authority are holding my Mum responsible for.

No-one (with the exception of you and your brother) is interested in half a house.

Your options are one or both of you buys the other 50% (is a mortgage not possible?)
Or it will have to be sold.
If it’s sold the LA will take 50% and you’ll both get your 25% (after the costs of selling are deducted I would assume in the 50/25/25 ratios).

Your brother cannot expect to stay in a house he won’t pay for.
It would take time but eventually it would be evicted with the costs of that process having to be paid.

If you don’t take action the LA would step in and that will have costs attached.
I would suggest you keep the LA informed e.g. tell them the next step is this meeting.

Mojisola

brigez wrote: »

My Mum has been in a care home for the last year and her liquid assets have dropped below the £12500 limit when you can ask the local authority for help.

After having the local authority financial assessment done they have said that we need to sell my Mums portion of the property so that we can continue to pay the care home fees.

lisyloo wrote: »

If you don’t take action the LA would step in and that will have costs attached.

Or the council will refuse to pay the care home fees of a person who has enough assets to pay their own way and the care home will turf mother out.

How will your brother cope with looking after your mother when she has to come home?