Care home financing and buying mothers home at valuation price.

karadean

My mother has just gone to a rest home and has enough to self finance for two years, so I'm thinking of buying mothers home at valuation price less 10% to pay care home fees then carry out repairs to sell, to at least get some sort of inheritance (30k). I understand that I will have capital gains to pay but how would the social services feel later if they have to help when she has below £23000. Is it a deliberate deprivation of assets? The only problem I can see is if she dies it would of pasted to me tax free.
Thoughts please   

xylophone

so I'm thinking of buying mothers home at valuation price less 10% 

You would need to buy at market value to avoid any suggestion of deprivation of  capital.

Do you already own a property? Consider extra SDLT?

Linton

Why should you get the house cheaply? The house isnt your inheritance until your mother dies and the will is implemented - at the moment it's your mother's.  Is your mother mentally capable of making financial decisions and if not do you have Power of Attorney? Are you the only beneficiary of her will or is there someone else who would feel hard done by if they saw you syphoning off some of the money?
It would be much more  transparent if you paid the full market price as determined by a qualified surveyor.  If you are the sole beneficiary  then you will get the money back in due course assuming it is not required for your mother's care funding.

Browntoa

It's deprivation unless you pay market price . 

Do you have a financial power of attorney for her . This could muddle the picture as you would have to possibly prove that the sale is in her best interests .

Any council being asked to provide care down the line would go through her finances with a fine tooth comb

poppy12345

karadean said:

to at least get some sort of inheritance (30k).

That is very sad indeed. Wouldn't you rather your mother have the best care possible?

karadean

I'm the only beneficiary and I said valuation (market value) less the10% that's what the social services take off the value to sell it. It has to be sold soon as it's in need of repair and she will need the cash for the fees. It hurts that a building developer will get the gain after the repairs. 

calcotti

There may be relevant advice in these documents
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs38_property_and_paying_for_residential_care_fcs.pdf
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs40_deprivation_of_assets_in_social_care_fcs.pdf
(I haven’t gone through them.)