Getting a house gifted to you

dimbo61

If your living in a rental property council or private you still need to pay Council Tax but may get 25% discount if your the Only adult in the property.
If you move to your own home you will still need to pay council tax and maybe eligible for the 25% discount.
What you won't get is housing benefit 

Slinky

If the giver has only recently been the inheritor of the will (ie within the past 2 years), they could get the will changed by deed of variation so the money passes directly to the OP. Not sure what effect that would have on the deprivation of assets though.

fairydust22

Brie said:

I would be most concerned about the deprivation of assets issue.  If the generous family member is older (likely if they've lived somewhere 40 years) then at some point they may need a lot of looking after.  And there's no 7 year limit for deprivation of assets.  If the local authority decide the individual should contribute to their care costs (either in their home or residential somewhere else) then they will look at why they don't have enough to self fund.  And that could mean coming to you to give back /sell the house so the money goes back to benefit the gifter.  This would not be an issue particularly if you are, at that point, over 60 yourself as they will not make you homeless but will put a lien on the house so they get the ££ when it is eventually sold. 

Unfortunately free gifts can be very expensive as I've found out myself.  Sometimes in unexpected ways too.  If the house is further away from where you are working as a carer will you be able to afford more petrol for your car or the extra bus fare?  Moving costs?  Extra bits for the new place, furniture, curtains?  Costs of moving phone/broadband/utilities contracts?  Presumably you already pay contents insurance so cover for buildings won't be too much extra really (unless you're moving to a mansion!)

I do hope you manage to work it out ok - just better to go in with your eyes open!

 I would still be living in the same area, i don't know how much building and contents insurance would roughly be for a 3 bed house, i would also need to work out on average how much to try put by per month for any repairs that may arise. 

Slithery

Slinky said:

If the giver has only recently been the inheritor of the will (ie within the past 2 years), they could get the will changed by deed of variation so the money passes directly to the OP. Not sure what effect that would have on the deprivation of assets though.

I believe that there would be no 'depredation of assets' liability for the relative. A deed of variation means that that for all legal intents and purposes the will named the OP instead of their relative as the beneficiary.

elsien

Slithery said:

Slinky said:

If the giver has only recently been the inheritor of the will (ie within the past 2 years), they could get the will changed by deed of variation so the money passes directly to the OP. Not sure what effect that would have on the deprivation of assets though.

I believe that there would be no 'depredation of assets' liability for the relative. A deed of variation means that that for all legal intents and purposes the will named the OP instead of their relative as the beneficiary.

That’s not an argument I would want to rely on. The relative would have chosen to vary the will so it’s not as straightforwards as that makes out. 

Gavin83

Slithery said:

Slinky said:

If the giver has only recently been the inheritor of the will (ie within the past 2 years), they could get the will changed by deed of variation so the money passes directly to the OP. Not sure what effect that would have on the deprivation of assets though.

I believe that there would be no 'depredation of assets' liability for the relative. A deed of variation means that that for all legal intents and purposes the will named the OP instead of their relative as the beneficiary.

That would still be considered deprivation of assets as you effectively inherited and chose to give it away.

OP, are you the carer for the person offering to do this by any chance? 

fairydust22

No i'm not the carer.

sammyjammy

I think you need to post on Benefits and Tax Credits board for benefits advice.  Apart from housing and council tax benefit is Carers Allowance all you are receiving?  If so and you are not working you are living on less than the government says you should be.

getmore4less

Slithery said:

Slinky said:

If the giver has only recently been the inheritor of the will (ie within the past 2 years), they could get the will changed by deed of variation so the money passes directly to the OP. Not sure what effect that would have on the deprivation of assets though.

I believe that there would be no 'depredation of assets' liability for the relative. A deed of variation means that that for all legal intents and purposes the will named the OP instead of their relative as the beneficiary.

Still counts as deprivation a DOV is just a gift with tax breaks for  if CGT and IHT as if the donor was the deceased.

The gift still counts as coming from the beneficiary for other purposes.

KittleSkittle

How happy and settled are you in your current home, which I presume is a secure tenancy? 

There are various legal and financial implications to fully understand, but the other side of the equation is how much you would gain from having your own house, which may be less tangible and harder to quantify?

My father actually did this for me last year, but I had been in private rented for years, and after a long saga of my landlords thoroughly messing me around I faced trying to find a new rental, which is very stressful in itself, was going to cost me even more because the rental market had risen so much, and I would still have that insecurity hanging over me.

No deprivation of assets issue with my father though. No boiler in new house. Insurance if the roof blows down. Small amount of savings which would hopefully cover most other things, and family would help again if absolutely necessary (yes, I know, I’m very very lucky). The amount I was paying to top up my rent covers the extra council tax. Benefits to my mental health have been beyond huge.

So lots to think about