Elderly parent putting money into our property

brasso

Unless I'm misunderstanding something here it would probably be best for her to simply give you the 50K and not become a part owner, which will have tax implications as she'll now own two properties. As others have said, there are no IHT problems as she's below the threshold. If she needs to go into a care home, she has enough assets to fund a good few years.

london21

Is she gifting you or will have equity in the property.

Later might come back to affect you.

How old is t she and will she likely need care assistant etc 

lisyloo

brasso said:

Unless I'm misunderstanding something here it would probably be best for her to simply give you the 50K and not become a part owner, which will have tax implications as she'll now own two properties. As others have said, there are no IHT problems as she's below the threshold. If she needs to go into a care home, she has enough assets to fund a good few years.

But she could run out of money and the LA come after it.
not likely but there are people who stay far longer than the average.

if there is a plan in place to cover it in a good few years then that might be good enough.

Chris_English

Walters_mum said:

Thanks, we have LPA. My great Aunt spent 30 years in a care home (although I think that's unlikely for my 83 year old mother!) 

If you have power of attourney then you should be thinking about what’s best for her.

I’m not sure that taking her money so you can have a nicer house really fits into that.

Keep_pedalling

lisyloo said:

brasso said:

Unless I'm misunderstanding something here it would probably be best for her to simply give you the 50K and not become a part owner, which will have tax implications as she'll now own two properties. As others have said, there are no IHT problems as she's below the threshold. If she needs to go into a care home, she has enough assets to fund a good few years.

But she could run out of money and the LA come after it.
not likely but there are people who stay far longer than the average.

if there is a plan in place to cover it in a good few years then that might be good enough.

That is highly unlikely as the LA would have to prove the gift was done to avoid care costs which is not the case as she is retaining enough to cover more years than she could reasonably expect to need. Chances are she will not need residential care, and one needs to factor in the absolute tiny risk that they might need 5+ Years of residential care. 

Walters_mum

Chris_English said:

Walters_mum said:

Thanks, we have LPA. My great Aunt spent 30 years in a care home (although I think that's unlikely for my 83 year old mother!) 

If you have power of attourney then you should be thinking about what’s best for her.

I’m not sure that taking her money so you can have a nicer house really fits into that.

Nobody is taking money from her.  She's of sound mind, I'm an only child and she wants to help. I think you'll find that's not uncommon for a parent. 

SavingPennies_2

Walters_mum said:

Good question.  It wouldn't benefit her. She'd be helping her precious only child move to a safer area!  Would it be any different from her going on a luxury cruise for a year? She'd still have spent money 

I think they meant what's the benefit of her being "on the paperwork" not the benefit (emotionally or whatever) of giving you the money. 

Walters_mum

Thanks all. I now have all the information I need and won't be replying to any more comments. If anyone knows how to turn off comments. I'd reply to that one! Cheers 

user1977

Walters_mum said:

Thanks all. I now have all the information I need and won't be replying to any more comments. If anyone knows how to turn off comments. I'd reply to that one! Cheers 

You don't turn off comments, you just stop looking at the thread. Other people can continue the discussion if they wish.

Slithery

Walters_mum said:

Thanks all. I now have all the information I need and won't be replying to any more comments. If anyone knows how to turn off comments. I'd reply to that one! Cheers 

You can't.

The thread stays open so other people can carry on the discussion if they wish. It is a public forum after all.