Son's name on deeds

Deakin

I'm not sure if this is the right place for this thread but I'll shortly be downsizing my home and a neighbour has told me to put my son's name on the house deeds in case I ever need to go into a home. She said that when her father in law died her mother in law was advised by her solicitor to put her children's names on 50% of the property and now the she's had to go into a home and they will have to sell the house, the 50% owed by the children will go straight to them and not towards the care home costs.

Is this right? Or is she getting confused?

Catswhiska

Would be seen as deprivation of assets. It would not work and be treated as if you still owned all the property

elsien

You also need to consider that it would be your children's asset as well, potentially to be taken into account if they divorce or ever needs means tested benefits, if it is not their main home. If it is their main home at present it would rule them out of FTB status if they ever look to buy their own house.
If it's something you're considering you need to go through all the implications, not just the Care home ones.

Dox

Well meaning neighbour but not one who understands the implications - which are very far reaching, and not just in terms of possible avoidance of care home fees.

Brynsam

Deakin wrote: »

I'm not sure if this is the right place for this thread but I'll shortly be downsizing my home and a neighbour has told me to put my son's name on the house deeds in case I ever need to go into a home. She said that when her father in law died her mother in law was advised by her solicitor to put her children's names on 50% of the property and now the she's had to go into a home and they will have to sell the house, the 50% owed by the children will go straight to them and not towards the care home costs.

Is this right? Or is she getting confused?

Is your neighbour a qualified legal/financial professional? Has she explained that your children would be hit for a huge capital gains tax bill when your new home is sold? That if they already own homes, the purchase of your new home will spark a punitive 'second homes' Stamp Duty bill? That if they don't already own homes, part-owning your new home will mean that if they then buy their own first home, they will pay punitive 'second homes' Stamp Duty? That part-owning your home will mean they are excluded from Help to Buy and other house purchase initiatives? That their share of your new home would be taken into account if they ever divorce?

Lastly...would your children really want you to end your days in some sort of smelly council sink home because the funds to pay for a decent home have run out?

atush

it would also mean a Big CGT bill for the children on sale.

ermine

the 50% owed by the children will go straight to them and not towards the care home costs

People and their flippin' greedy kids. Allow us as taxpayers who will be on the hook for your care home costs to put you in the cheapest dump we can get away with. After all, if your kids CBA to look after you with what is your money, why should the rest of us stump up?

There's no money tree. Their gain is your, and ultimately our loss, should the worst happen. FWIW it's unlikely to happen to you.

Take a look at the ONS figures Just over 3% of the population ends up in a care home by 85. Of those over 85 it's still less than one in five, and of course you have to get to be over 85 to end up with that 16% risk, which includes really really old people. You can look up the national life tables to see your odds of making 85 and over, it is not a step-change from 84 to 85 as the 16% risk includes people who are 100.

Malthusian

Deakin wrote: »

I'm not sure if this is the right place for this thread but I'll shortly be downsizing my home and a neighbour has told me to put my son's name on the house deeds in case I ever need to go into a home.

Your neighbour would apparently be fine with your son chucking you into Overmydeadbody Grove so he can get a bigger inheritance. Might be for the best that you are moving away from her.

vonvonvon

Brynsam wrote: »

Lastly...would your children really want you to end your days in some sort of smelly council sink home because the funds to pay for a decent home have run out?

That is an unfair sweeping generalisation, I work in a Council run care home and it is far from smelly and has dedicated staff who really look after the residents.