Giving money to my son to buy a house.

VXman

Lover_of_Lycra said:

Yes really. 

I think they would struggle to make a case 20 years down the line. I have a 10 year old car -my mate buys a brand new one every year. 'Deprivation of assets' on his part? My TV cost £400 5 years ago but others like to spend 5K grand on the latest model. Mate of mine (67 years old) just spent 10K on a cycle because he's a cycle enthusiast - .  'Deprivation of assets' ?
Could go on. 

[Deleted User]

VXman said:

Lover_of_Lycra said:

Yes really. 

I think they would struggle to make a case 20 years down the line. I have a 10 year old car -my mate buys a brand new one every year. 'Deprivation of assets' on his part? My TV cost £400 5 years ago but others like to spend 5K grand on the latest model. Mate of mine (67 years old) just spent 10K on a cycle because he's a cycle enthusiast - .  'Deprivation of assets' ?
Could go on. 

Please don't.  I said, "there isn’t a limit on how far back local authorities can go," which is true.  You listing off things your friends like to buy doesn't alter that. 

VXman

Lover_of_Lycra said:

Please don't.  I said, "there isn’t a limit on how far back local authorities can go," which is true.  You listing off things your friends like to buy doesn't alter that. 

  Done lots of reading on Care homes and giving away money. Doesn't fit my situation. 

getmore4less

They can go back as far as they want but proving a successful deliberate deprivation of assets get very unlikely when there is clear evidence the assets were disposed of for other reasons than claiming state funded care.

Angela_D_3

With my daughters,  I bought a house 10% deposit so if it went pear shaped nobody lost too much.  She pays rent which is slightly more than the mortgage to cover repairs etc.  I also over pay it a bit so when I die, the mortgage if there is any is affordable for her.  
That meant all my eggs weren’t in one basket,  the end goal is still achieved.  If her life changed and she could buy alone she’d still be a first time buyer.  

davidmcn

Lover_of_Lycra said:

VXman said:

Lover_of_Lycra said:

There isn’t a limit on how far back local authorities can go. 

Really? So if I blew all my money in my 60's on lots of expensive holidays and a nice car or two would that be considered 'deprivation of assets' in my 70's.   Where would they draw the line. Everyone has different expectations/standards of living.

Yes really. 

Eh? Surely spending money on yourself isn't "deprivation" of assets, just converting your assets into a different form? I've never heard of the concept other than when giving things away to other parties.

Caramac

I would check your daughter is fine with you helping out your son. My aunt and uncle left their house to my youngest cousin who was the only one who didn’t currently own a property. It was her sister who lived in a nice barn conversion with land, plus property abroad who refused to speak to her parents over this.

Angela_D_3

davidmcn said:

Lover_of_Lycra said:

VXman said:

Lover_of_Lycra said:

There isn’t a limit on how far back local authorities can go. 

Really? So if I blew all my money in my 60's on lots of expensive holidays and a nice car or two would that be considered 'deprivation of assets' in my 70's.   Where would they draw the line. Everyone has different expectations/standards of living.

Yes really. 

Eh? Surely spending money on yourself isn't "deprivation" of assets, just converting your assets into a different form? I've never heard of the concept other than when giving things away to other parties.

It depends. 

If you fall on hard times and are at the mercy of the government to provide you with benefits or care services they can refuse on the basis of non discretionary spending.  A friend of mine was working full time in a professional role.  Bought a puppy.  Universal credits did not approve of the purchase and deducted the price of the dog from their calculations as to what help she could get with childcare,  so that she could work.  As a result the family ended up using food banks to feed herself and the puppy for a few months.  Ridiculous 

greatcrested

Food banks to feed a puppy? Whatever next!

And as a contributer to the costs of UC (and admitted dog-hater) I don't see why I should be paying for dog support.

Actually it would make more sense if the puppy was donated to the food bank to help feed a family in genuine need. OK, now I'll sit back and wait for the outcry....

greatcrested

VXman said:

Lover_of_Lycra said:

There isn’t a limit on how far back local authorities can go. 

Lover_of_Lycra said:

Option 5 sounds best. A private mortgage between you and your son. It’s tax efficient and cuts out the nonsense of 1 with all the pretend gifting. 

Interesting - I didn't mention option 5 but 'private mortgage'. What is that? That would be a legal agreement between us?

That is effectively option 1 combined with my suggestion of a Charge as per the 2nd post in the thread.