Inheriting whole holiday home on Universal Credit

Keep_pedalling

Adviceplease1 said:

Wow, thanks so much everyone for the additional advice. Clearly a lot to think about. I'm going to make a document and put all your info in there ready to ask our accountants and solicitor etc, for various scenarios.

Good that you've all pointed out the detrimental effect on the kids of leaving them property now - we hadn't considered this and it's obviously very important. So not a good idea to leave them shares in any property!

It's me that wants to keep the holiday cottage, me that has the sentimental attachment to it!  It's now registered as a business (furnished holiday let); we've had to let it close to cost price to achieve the required number of days.  But it does now break even.  Anyway, I'll ask the tax accountants more about this suggestion of theirs for holdover relief.

I'm thinking, another way around this might be for him to simply release equity in his main house, which he'd quite like to do anyway, but if I want to get a second charge mortgage on it later, to rent it out, I'll have to ask my FA what the minimum amount is that needs to be left in it. He could maybe put a chunk of this released equity on my own mortgage?  I'll check this out - now doesn't seem to be a good time with interest rates etc.

The care costs thing is a minefield - I'll absolutely check all that carefully too, thanks so much.  As I say, I'll probably just move in and care for him myself as long as possible. But he might need specialised help towards the end.  His Mum lived to 97 with many years of dementia - he could well be the same.  The link is v helpful for calculations.

Asset rich/cash poor hits the nail on the head.  Yep!

Could you answer the question about his marital status please?

Alice_Holt

Keep_pedalling said:

Adviceplease1 said:

Wow, thanks so much everyone for the additional advice. Clearly a lot to think about. I'm going to make a document and put all your info in there ready to ask our accountants and solicitor etc, for various scenarios.

Good that you've all pointed out the detrimental effect on the kids of leaving them property now - we hadn't considered this and it's obviously very important. So not a good idea to leave them shares in any property!

It's me that wants to keep the holiday cottage, me that has the sentimental attachment to it!  It's now registered as a business (furnished holiday let); we've had to let it close to cost price to achieve the required number of days.  But it does now break even.  Anyway, I'll ask the tax accountants more about this suggestion of theirs for holdover relief.

I'm thinking, another way around this might be for him to simply release equity in his main house, which he'd quite like to do anyway, but if I want to get a second charge mortgage on it later, to rent it out, I'll have to ask my FA what the minimum amount is that needs to be left in it. He could maybe put a chunk of this released equity on my own mortgage?  I'll check this out - now doesn't seem to be a good time with interest rates etc.

The care costs thing is a minefield - I'll absolutely check all that carefully too, thanks so much.  As I say, I'll probably just move in and care for him myself as long as possible. But he might need specialised help towards the end.  His Mum lived to 97 with many years of dementia - he could well be the same.  The link is v helpful for calculations.

Asset rich/cash poor hits the nail on the head.  Yep!

Could you answer the question about his marital status please?

  This could be a really important question, OP.

I think you mentioned your dad was widowed - is there the possibility that your dad could inherit the unused portion of your mum's IHT allowance?

https://www.gov.uk/guidance/transferring-unused-basic-threshold-for-inheritance-tax

Adviceplease1

Hi, thanks for the additional info.  

I helped my Grandma when she had dementia, so I know about the behavioural changes. He's a bit tricky as it is, lol. Obviously it might not be possible and he might need a second carer or may need to go into a home. But I'll try my best to help him stay at home as long as possible.  Thanks for the info about the care costs - will definitely research further.  Are there any threads on this forum about it please?  Or other sites?  We'll check out the one already given, thanks.

It just seems to be all the more reason to give stuff away now though but as I say, we are indeed seeking expert advice and all your comments are valuable and appreciated.

Dad got divorced from my Mum 30 years ago, never remarried, not a widower, doesn't have a partner.  But thanks for trying to help us find a way through this.

elsien

Care costs fact sheet.

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs10_paying_for_permanent_residential_care_fcs.pdf

Deliberate deprivation of assets fact sheet. Applies to the financial assessment for care at home as well for residential care. 

https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs40_deprivation_of_assets_in_social_care_fcs.pdf

Adviceplease1

Thanks Elsien, very helpful.