Shared Family Ownership and Care
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gt568
Posts: 2,497 Forumite
Could anyone help advise on this issue or point in the right direction?
My wife and I and our two children live in the main house with my elderly parents living in a self contained, attached annex at the back of the house.
The property is owned 52% by us and 24% each by my parents.
If they were to require care, would we have to sell the property?
MTIA
My wife and I and our two children live in the main house with my elderly parents living in a self contained, attached annex at the back of the house.
The property is owned 52% by us and 24% each by my parents.
If they were to require care, would we have to sell the property?
MTIA
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Comments
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No, but you would pobably have a charge put on the house from the provider of the care up to your individual parents [ whoever needs care] portion of the equity for any future sale.Shampoo? No thanks, I'll have real poo...0
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Would likely they put a charge on a family home?
And in theory the charge would presumably be only on 24% of the property? So 24% of the potentially forced sale price? If it sold for 200k they could claim 48k for instance but not 100k if the bill came to that much?{Signature removed by Forum Team}0 -
Am I to assume they sold a previous property to fund the part purchase of this one? If the answer is yes did their portion of the deposit/payment come to 48%?
Can I ask why they own 48%? It's a very exact amount, it almost seems like a business deal.
I've got an idea of what's happened here but I'll hear it from you before drawing any conclusions.
In answer to your question yes, they'd put a charge on a family home should the need arise. The answer to your second question will rely on the above.
It's a little more complicated than the usual case but should one of them require care but not the other the value of the property will be ignored anyway.0 -
The money we had to put in came to 52% of the value of the total project. Hence the split.
They may never need care. And have significant liquid assets as well, however this is a case of what ifs and looking at best potential options for all.
It's a little more complicated than the usual case but should one of them require care but not the other the value of the property will be ignored anyway.
So are you saying if one goes into care, but the other remains in the house the 24% of the individual in care doesn't count? Are you effectively saying the property value doesn't matter unless both are in care or one dies and the other goes into care? This is very confusing.{Signature removed by Forum Team}0 -
So are you saying if one goes into care, but the other remains in the house the 24% of the individual in care doesn't count? Are you effectively saying the property value doesn't matter unless both are in care or one dies and the other goes into care? This is very confusing.
In a 'normal' situation where the house is owned by a couple, if the home is still needed for a partner, or a disabled family member, or a family member over 60 (or is it 65?), then there is no requirement to sell the house, and the value of the house is not taken into account.
Because the house is still needed, and being occupied by, someone who does not need residential care.
However, once the house (or part thereof) is no longer needed, because residential care is needed, and there's no longer anyone living there who meets the conditions above, then its value IS taken into account.
Your situation is more complicated because it's not a whole house but the basic principle is this: a couple or survivor of a couple in residential care do not normally need to retain their former home - there are exceptions, but they are limited. If they chose NOT to sell their home, then ways must be found to pay for their care. If the house is not sold, then a charge will be put upon it. Its value will be included in their assets.Signature removed for peace of mind0 -
Your situation is more complicated because it's not a whole house but the basic principle is this: a couple or survivor of a couple in residential care do not normally need to retain their former home - there are exceptions, but they are limited. If they chose NOT to sell their home, then ways must be found to pay for their care. If the house is not sold, then a charge will be put upon it. Its value will be included in their assets.
So I think then, have I got this, that if parent 1 goes into care but parent 2 doesn't, then the value of parent 1s share isn't taken into account. If then parent 2 goes into care the value of the share is taken into account?
Maybe we'd be better buying them out in total just in case; then all their assets are liquid.....{Signature removed by Forum Team}0 -
So I think then, have I got this, that if parent 1 goes into care but parent 2 doesn't, then the value of parent 1s share isn't taken into account. If then parent 2 goes into care the value of the share is taken into account?Maybe we'd be better buying them out in total just in case; then all their assets are liquid.....Signature removed for peace of mind0
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Maybe we'd be better buying them out in total just in case; then all their assets are liquid.....
If you have the money to cover care home bills, why not leave things as they are - only a small percentage of elders end up in residential care.
As long as the home's bills are paid, you won't have to sign up for a deferred payment scheme which puts a charge on the house.0 -
If you have the money to cover care home bills, why not leave things as they are - only a small percentage of elders end up in residential care.
As long as the home's bills are paid, you won't have to sign up for a deferred payment scheme which puts a charge on the house.
We wouldn't have that kind of cash. We'd have to mortgage to buy them out, we are all currently mortgage free.{Signature removed by Forum Team}0 -
We wouldn't have that kind of cash. We'd have to mortgage to buy them out, we are all currently mortgage free.
If you could take out a mortgage to buy them out now, you could probably do this later, if the care home and sale issue does come up.But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll0
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