Transferring property

Loza2020

Advice please

Back story
Parents owned house no mortgage in Wales worth about £260k.
Dad has gone into care home being paid out of savings we have POA.
I advised my mum to speak to her solicitor to find out if they owned the property 100% each or 50% so she could leave her share to someone else in her will.
Spoke to her a few weeks later to find out the outcome and have been told that the solicitor has removed my dad from the deeds.
Unfortunately my mother is the type of person who does what ever she’s told and never questions anything.
What are the tax implications if any?
I’ve explained this is depravation of capital so was pointless and she’s just paid a solicitor for nothing.
I’m now concerned about the tax implications. I have no desire to avoid care home fees as my dad deserves the best.
Any advice appreciate.

xylophone

Are you sure your mother hasn't misunderstood? The solicitor hasn't simply severed the joint tenancy on her instructions? It can be done without the other owner's consent.

https://www.gov.uk/joint-property-ownership/change-from-joint-tenants-to-tenants-in-common

This would require the serving of notice to your father/his deputy.

Had a PoA wished to sever a joint tenancy, he would have had to seek the permission of the court.

See https://events.lawsociety.org.uk/uploads/files/dae4d8ea-5deb-4fa0-a99b-91a478f08118.pdf

However, even after severance, your father's name would not be removed from the register - however, a Form A restriction should have been registered.

If they were joint tenants, in terms of deprivation of assets, all the time your mother was living in the property, the house would not have been taken into account in terms of paying for care.

Had your father died, the house would have been hers regardless of any will and had she needed care, the property would have been taken in account in terms of paying for care.

If the solicitor has simply removed your father's name from the register without his or his attorney's consent (and how would an attorney be able to justify this as in the donor's best interests), something doesn't seem quite right.

I don't see any tax implication in a change from both spouses owning the property to one owing the property?

Loza2020

Thank you for taking the time to reply.
My mum has told me my dad no longer owns the property. She also said the solicitor was visiting my dad in the care home as part of the process.
I thought this was odd as my dad doesn’t have mental capacity to sign anything.
I totally agree that this is not in my father’s interest and am annoyed that this has been done.
I think I will visit the solicitor myself with my mother and clarify.

Mgman1965

If the solicitor has done this to try and get your father out of paying his carehome fees by asset-stripping him, it won't wash with the council, the same as some ask on here if their parents can sell them their home for £1 (or just give it to them) to avoid it, otherwise every couple would be doing it.

Anyway, whilst your mother still lives there, the most the council can do is put a charge on it until your mother passes on and its sold.

Loza2020

I have no idea what the solicitor was thinking as I know about deprivation of assets and I’m aware that they can’t make my mum sell the house while she lives there.
She went in to find out how they owned the house,

My father has significant savings so he will be looked after and As I said in my original post I have no intention of helping anyone avoid care home fees.
My only concern was if there was a tax implication as this would’ve taken money away from my dads pot of money for his care.

xylophone

Has your father made a will? Have you seen it?

Loza2020

My father does have a will which leaves money to his oldest daughter from a previous marriage and the rest to mum.

Loza2020

Can this be closed now as I have had the answer I was looking for?

davidmcn

Loza2020 wrote: »

Can this be closed now as I have had the answer I was looking for?

No, threads don't normally get "closed" here. You can just ignore it and everyone else probably will too.