Mum wants to transfer house deeds to myself after dad has died.. best way to do it for her?

Mojisola

justwhat said:

(jus remember if the house is owned by the son/daughter they control the sale or care home funds. If the parent owns the house then the council will force sale, you have no choice.)

This isn't right.

If the council do the financial assessment and see that a person has enough funds to pay their own way (including the capital in a property), they back off and leave organising and paying for the care home to the client and/or their attorneys.  If there aren't enough funds until a property is sold, they will arrange to pay up to their weekly allowance which would be repaid after the sale.  There will usually be a top-up fee to be paid on top of the council's contribution.

If the council assess the person as having given away assets to avoid paying for care, they will back off.  What happens to the person needing care then falls to the family/attorneys to arrange.  

If necessary, the council will go to court to regain the assets for the client.  

If the client's attorneys want to pay the care home from capital or by renting out their parent's property, that's their decision - as is the choice of home their parent where their parent spends their last months/years.

If you really want your mother to end her life in the lowest funded home in your area, go ahead with this bad idea.  You will probably end up paying extra tax in the ways that have been outlined above.

justwhat

Mojisola said:

justwhat said:

(jus remember if the house is owned by the son/daughter they control the sale or care home funds. If the parent owns the house then the council will force sale, you have no choice.)

This isn't right.

If the council do the financial assessment and see that a person has enough funds to pay their own way (including the capital in a property), they back off and leave organising and paying for the care home to the client and/or their attorneys.  If there aren't enough funds until a property is sold, they will arrange to pay up to their weekly allowance which would be repaid after the sale.  There will usually be a top-up fee to be paid on top of the council's contribution.

If the council assess the person as having given away assets to avoid paying for care, they will back off.  What happens to the person needing care then falls to the family/attorneys to arrange.  

If necessary, the council will go to court to regain the assets for the client.  

If the client's attorneys want to pay the care home from capital or by renting out their parent's property, that's their decision - as is the choice of home their parent where their parent spends their last months/years.

If you really want your mother to end her life in the lowest funded home in your area, go ahead with this bad idea.  You will probably end up paying extra tax in the ways that have been outlined above.

The council will want there money. There is no way to avoid paying the fees if the elderly person owns the house. if the dad left the house or his share to the child the council  have no hold over the house/share of the house.. 

And not all council care homes are dumps/bad.

Mojisola

justwhat said:

The council will want there money. There is no way to avoid paying the fees if the elderly person owns the house. if the dad left the house or his share to the child the council  have no hold over the house.
And not all council care homes are dumps/bad.

Why should there be?

Very few councils run their own care homes - the vast majority are private.  The council will pay up to a set amount but that is too low to provide good care.

There is only one home in our area that accepts residents at the council rate and I wouldn't want a relative of mine living there.  Every other home requires a top-up to the council rate. 

canaldumidi

I think you've got the message by now:

* 'deprivation of assets' - so when the council assess her ability to self-finance care they will include the property anyway

* 'gift with reservation' - so the 7 year rule for inheritance tax won't apply and the property will be included in her estate for IHT however long she lives

* capital gains tax - if/when you sell the property you'llpay CGT as it won't have ben your main residence

* SDLT - if you buy another property yourself you'llpay the additional 3% SDLT

* FTB schemes - if you are not currently a home-owner, you'll no longer qualify for FTB shemes if/when you buy

* quality care in later life - if she needs a care home in future, the house will give her the ability to get decent care as opposed to the most basic, home funded by the council. What a way to spend your final years....

Tell you mum to keep the house, and write a will.

lr1277

Lets say you go down this route as far as your mum paying you rent to continue living in the house. You then become a landlord with all the attendant responsibilities like gas safety inspections, electrical inspections, fixing any and everything. Additionally you will pay  tax on the rental income. If you don't already complete a self assessment return, they are a joy.

Before a new tenancy is started or a house is sold, an EICR has to be completed by a qualified electrician. I wouldn't imagine it would be any different if a property is gifted especially as you will become a landlord on receipt of the gift. Also a report whose name I have forgotten for the moment but shows the insulation characteristics of the property has to be done before a house is sold. Again, I would imagine one might have to be done before the house is gifted. Just some thoughts for you to consider.

justwhat

lr1277 said:

Lets say you go down this route as far as your mum paying you rent to continue living in the house. You then become a landlord with all the attendant responsibilities like gas safety inspections, electrical inspections, fixing any and everything. Additionally you will pay  tax on the rental income. If you don't already complete a self assessment return, they are a joy.

Before a new tenancy is started or a house is sold, an EICR has to be completed by a qualified electrician. I wouldn't imagine it would be any different if a property is gifted especially as you will become a landlord on receipt of the gift. Also a report whose name I have forgotten for the moment but shows the insulation characteristics of the property has to be done before a house is sold. Again, I would imagine one might have to be done before the house is gifted. Just some thoughts for you to consider.

no need for all that if the dad leaves it as inheritance.

getmore4less

First thing is how was the house owned and what did the will do with the fathers assets and any share of the house.

General_Grant

justwhat said:

lr1277 said:

Lets say you go down this route as far as your mum paying you rent to continue living in the house. You then become a landlord with all the attendant responsibilities like gas safety inspections, electrical inspections, fixing any and everything. Additionally you will pay  tax on the rental income. If you don't already complete a self assessment return, they are a joy.

Before a new tenancy is started or a house is sold, an EICR has to be completed by a qualified electrician. I wouldn't imagine it would be any different if a property is gifted especially as you will become a landlord on receipt of the gift. Also a report whose name I have forgotten for the moment but shows the insulation characteristics of the property has to be done before a house is sold. Again, I would imagine one might have to be done before the house is gifted. Just some thoughts for you to consider.

no need for all that if the dad leaves it as inheritance.

Dad's dead already.

justwhat

General_Grant said:

justwhat said:

lr1277 said:

Lets say you go down this route as far as your mum paying you rent to continue living in the house. You then become a landlord with all the attendant responsibilities like gas safety inspections, electrical inspections, fixing any and everything. Additionally you will pay  tax on the rental income. If you don't already complete a self assessment return, they are a joy.

Before a new tenancy is started or a house is sold, an EICR has to be completed by a qualified electrician. I wouldn't imagine it would be any different if a property is gifted especially as you will become a landlord on receipt of the gift. Also a report whose name I have forgotten for the moment but shows the insulation characteristics of the property has to be done before a house is sold. Again, I would imagine one might have to be done before the house is gifted. Just some thoughts for you to consider.

no need for all that if the dad leaves it as inheritance.

Dad's dead already.

deed of variation can be done upto 2 years after death.

MaiTai

A deed of variation may not be used to bypass the rules regarding deprivation of assets.
Legally it is still viewed as a gift by the original beneficiary of the will.