POA or gift the house (to rent)

Mojisola

elmo43 said:

He basically wants to move in with me and hand everything over to me to deal with and not to cause an issue with his pension. He is wanting to gift me the house that way it’s all out his hands.

So you will own the house outright and your brother will be renting it from you? 

And that won't cause any issues between siblings?

elmo43

Slithery said:

Gifting you the property also comes with a range of issues to consider, especially if he later needs care funding...

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

Thanks I know there will be lots of stuff we have not considered and will need to discuss and that’s one of them. Thanks for the link. 

As for issues with my brother renting we have talked about than and it suits him perfectly, it’s a bigger house closer to the school he is keen for this to go ahead. But I know things can change so we would ensure the proper tenancy agreement were in place etc and any issues he would need to move out and rent to a new tenant. I don’t foresee an issue, my brother rented my house for many years. Also when the time comes and my father is no longer with us we would sell the house and split the money as per his wishes. House being in my name would not change that. 

Mojisola

elmo43 said:

Also when the time comes and my father is no longer with us we would sell the house and split the money as per his wishes. House being in my name would not change that. 

If that's the intention, why not make both of you owners?  Your brother could then pay just half the rent on your share to you.

If you take ownership of the whole house, you will be gifting your own money to your brother after your father dies - it won't be an inheritance from your father.  

elmo43

My brother has old debts so don’t want to risk the house in his name. I am debt free other than my mortgage which only has a few more years. 

sheramber

When you sell you will be liable to CGT.

xylophone

Also when the time comes and my father is no longer with us we would sell the house and split the money as per his wishes. House being in my name would not change that. 

If your father gifts you the property it becomes your property - his wishes only have any bearing in so far as you chose to regard them.

There could be IHT implications for his estate.

When you sold the property, you would have to bear in mind the CGT implications.

A gift to your brother could have IHT implications for your estate.

wilfred30

If he is going to be living with you, why doesn't he want to sell his house?
Who is going to pay for the loft conversion in your house?

getmore4less

POA  does not exclude the doner making their own decisions while they have capacity.